# Presentation: 424083

**Nontraditional **
**Educational Programs**
**and the **
**Delivery of Student Financial Aid**

**Fred Sellers**
**Office of Postsecondary Education**
**U.S. Department of Education**

## Overview

**  ****Background **
**  ****Term and Nonterm Academic Programs**
**  ****Standard Terms**
**  ****Nonstandard Terms**
**  ****Nonterm Programs**
**  ****Student Eligibility**
**  ****Miscellaneous Loan Issues**
**  ****Withdrawal Issues**
**  ****Nontraditional Education Activities**

## Background

**Roots of Student Aid Programs  **
**  ****Most schools:****  **traditional using standard terms
**  ****Any nontraditional programs:****  **continuing education or
-    extension services with no credits awarded
**  ****Laws and regulations****:  **minimal, structured around
-    traditional academic calendars
**  ****Records:****  **paper with some keypunched data

## Background

**Higher Education Amendments of 1992 - Fraud and Abuse Concerns**
**  ****Nontraditional education including distance **
**    ****education **
**  ****Quality**
**  ****Program length**
**  ****Accrediting agency recognition**

## Background

**Patterns of Nontraditional Education  **
**  ****Overlapping terms and courses**
**  ****Self-paced learning:  **correspondence,
-     Internet, or independent study
-   **Short courses and sequential course enrollment  **
**    ****such as modules that may be**
-      An entire program
-      Combination with other full-term length courses
**  ****Multiple start dates**

## Background

**Patterns of Nontraditional Education  **
_**  **_
**  ****Programs combining on-campus and distance**
**  **Especially at 2 plus 2 programs and programs
-      offered jointly by state systems
**  ****Weekend programs**
**  ****Home/host school enrollments (consortium and **
**    ****contractual arrangements); particularly in **
**  **2 plus 2 programs
-   university centers
-   distance education
**   **

## Background

**Problems with Campus Computer Systems **
** **
**  ****Structured around standard terms **
**  ****Are separate systems for “on campus” and  **
**    ****continuing education**
**  ****Are not flexible to accommodate new**
**    ****formats**
**  ****Are organized to meet school, not student,  **
**    ****needs**

## Term and Nonterm

**Academic Calendars**

## Term and Nonterm

**Definition of a Term **
**  ****A term is **_**a discrete period of time during which all**_
**    **_**courses in the term are scheduled to begin and end**_**.**
**  ****It is a segment of an academic calendar with  the**
**    ****academic calendar divided into separate segments.**
**   ****A term may include or consist of a series of mini**
**    ****courses or courses offered sequentially.**

## Term and Nonterm

**When does the academic calendar cease to be term-based?**
**  ****Classes do not start and stop within the same**
**    ****dates.**
**  ****The coursework overlaps from one defined term **
**    ****into another.**

## Term and Nonterm

**Standard Term **
**  ****A quarter, trimester, or semester**
**  ****Academic progress:  always measured in semester **
**   ****or quarter credit hours**

## Term and Nonterm

**Standard Term - Semesters**** ****and Trimesters**
**  ****Length:  **approximately 15 weeks of instructional time
** ****Academic progress:  **measured in semester hours
**  ****Full-time:  **at least 12 semester hours
**  ****Academic calendar:  **usually 3 terms - fall, spring,
-    and often summer
** **

## Term and Nonterm

**Standard Term – Quarters**
**Length:  **approximately 10-12 weeks of instructional time
**Academic progress:  **measured in quarter hours
**Full-time:  **at least 12 quarter hours
**Academic calendar:  **usually 3 quarters in fall, winter, and spring and often a summer quarter

## Term and Nonterm

**Nonstandard Term **
**Does not meet requirements for a standard term**
**May be of unequal lengths  **
**May the length of a standard term but academic progress not measured with the appropriate credit hours, e.g., a quarter using semester hours**

## Term and Nonterm

**Nonterm Programs**
**  ****Courses do not all begin and end within a**
**    ****discrete period of time and may **
**  **contain self-paced or independent study
-       courses that can span past a term; or
-   consist of sequential courses that do not have
-       to begin and end within a term.
**  ****Clock hours are always treated the same as **
**    ****nonterm programs for disbursement purposes.   **

## Term and Nonterm

**Federal Pell Grant Program Formulas**
_**1**_** **** Standard term, credit hour, fall through spring **
**    ****terms contain at least 30 weeks of instructional time**
_**2**_** **** Standard term, credit hour, fall through spring **
**    ****terms contain less than 30 weeks of instructional **
**    ****time**
_**3**_**  Any term-based credit program including nonstandard **
**    ****term credit hour **
_**4**_**  Clock hour and nonterm, credit hour programs**
_**5**_**  Correspondence programs**

**Term and Nonterm**

## Term and Nonterm

**Issues for Standard Terms, Nonstandard Terms, and**
**Nonterms**
**Definition of an academic year - days per week of instructional time **
**Payment period **
**Enrollment status**
**Certifying and disbursing loans **
**Pell formula **
**Progress measured**

**Term and Nonterm**

## Standard Terms

## Standard Terms

**  ****At least 30 weeks of  instructional time and 24  **
**    ****semester hours or 36 quarter hours**
**  ****Week of instructional time = 7 consecutive days in **
**    ****which at least one day of regularly scheduled **
**    ****instruction, examinations, or preparation for**
**    ****examinations occurs**
**   ****Instructional time = periods of orientation, counseling,**
**     ****vacation, or other activity not related to class **
**     ****preparation or examination**** **

**Standard Terms**

## Standard Terms

**Payment Period **
**  ****A term**
**  ****Quarter, trimester, or semester**

**Standard Terms**

## Standard Terms

**Determining Enrollment Status**
_**Status            **__**	**__**        Minimum hours**_
**Full-time****                        12 credits hours per term**
**Three-quarter-time****         9 credit hours per term**
**Half-time****                          6 credit hours per term**
**Less-than-half-time****        Less than half the **
**                                          ****workload of the **
**                                          ****minimum full-time **_                   _
-                                           **requirement**
**Pell:  **Recalculate if student does not begin
-          attendance in all classes

**Standard Terms**

## Standard Terms

**  ****Pell formula **_**1**_**:  **if the academic calendar contains at
-    least 30 weeks of instructional time in fall through
-    spring, and full-time is at least 12 credit hours in all
-    terms in the award year
**  ****Pell formula **_**2**_**:  **if the academic calendar contains less
-    than 30 weeks of instructional time in fall through
-    spring, and full-time is at least 12 credit hours in all
-    terms in the award year
**  ****Pell formula **_**3**_**:  **any credit-hour, term-based program

**Standard Terms**

## Standard Terms

**Certifying  and Disbursing Loans**_** **_
-   **The minimum period of time a loan can be certified is a**
**    ****term.**
**  ****If a loan period is more than one payment period, **
**    ****deliver loan proceeds at least once in each payment **
**    ****period. **
**  ****If a loan period is one payment period, at least two **
**    ****deliveries of loan proceeds during that payment period. **
**    ****The school may not make the second delivery until the **
**    ****calendar midpoint between the first and last scheduled **
**    ****days of class of the loan period.  **

**Standard Terms**

## Standard Terms

**Measuring Progress **
**  ****Progress is measured by the number of credit**
**    ****hours attempted.**

**Standard Terms**

## Standard Terms

**First term the student is enrolled in 12 credits**
** **2 - 3 credit courses that run the duration of the full term
-  2 - 3 credit courses that each run 5 weeks and begin and end during the term.
** ****Second term the student is enrolled in 15 credits **
-  2 - 3 credit courses that run the duration of the full  term
-   3 - 3 credit courses that each run 5 weeks and begin and end during the term.
**   **

**Standard Terms**

## Standard Terms

**15 Weeks**

**15 Weeks**

**Fall**

**Spring**

**6 credits**

**6 credits**

**5 Weeks**

**5 Weeks**

**5 Weeks**

**5 Weeks**

**5 Weeks**

**3 Credits**

**3 Credits**

**3 Credits**

**3 Credits**

**3 Credits**

*                          ****term 1                                     term 2***

-  **Pell and Loan disbursements at beginning of each term**
** ****If the student does not  begin all of the courses for this term, he or  **
**  ****she will no longer be considered full-time.**
**   **

**Standard Terms**

## Nonstandard Terms

## Nonstandard Terms

**  ****At least 30 weeks of  instructional time and 24  **
**    ****semester hours or 36 quarter hours**
**  ****Week of instructional time = 7 consecutive days in **
**    ****which at least one day of regularly scheduled **
**    ****instruction, examinations, or preparation for**
**    ****examinations occurs**
**   ****Instructional time = periods of orientation, counseling,**
**     ****vacation, or other activity not related to class **
**     ****preparation or examination**** **

**Nonstandard Terms**

## Nonstandard Terms

**If the program meets only 8 hours a week, each calendar week would be considered to be a week of instructional time.  Therefore, a minimum of 30 calendar weeks could meet the minimum requirement for an academic year.**

**Nonstandard Terms**

## Nonstandard Terms

**Payment Period**_** **_
**  ****For nonstandard terms, the payment period is the**
**    ****term.**
**Certifying and Disbursing Loans**
**  ****The minimum period of time a loan can be**
**    ****certified is a term.**
**Pell Formula **
**  ****Pell formula 3 is used.  **
** **

**Nonstandard Terms**

## Nonstandard Terms

**FFEL  and DL**
**  ****If a loan period is one payment period, at least two **
**    ****deliveries of loan proceeds.  Second delivery after **
**    ****the calendar midpoint between the first and last **
**    ****scheduled days of class of the loan period.  **
**  ****If a loan period is more than one payment period,  **
**    ****a second disbursement after the latter of**
** ****The calendar midpoint between the first and last**
**      ****scheduled days of the loan period; or**
**  ****The date that the student has completed **
**             ****half of the academic coursework in  **
**             ****the loan  period.**

**Nonstandard Terms**

## Nonstandard Terms

**Measuring Progress **
**  ****Progress is measured by the number of credit**
**    ****hours attempted.**

**Nonstandard Terms**

## ÷

**Enrollment Status**

**Step 1**  **Full-time (round up to the next whole number)**
_** **_
** **

**       ****Credit hours in**
**       ****the academic year**

**X**

**   ****Weeks of instructional**
**   **_**time in the term_____        **_

**      ****Credit hours**
**      ****taken by student **
**      ****in the term**

**÷**

**  ****Credit hours required**
**  ****for full-time status for the **
**  ****term (as determined above)**

**Weeks of instructional time in program’s definition of      academic year**

**   ****Step 2****  ****Determining enrollment status for the term   **

**Nonstandard Terms**

## Nonstandard Terms

**     **
**    **

**Example - Certificate Program **
**   ****8 week term    -  6 credits **
**  ****10 week term   -  9 credits **
**   ****9 weeks term  -  9 credits  (3 -3 credit courses to**
**                                  ****be taken sequentially)**
**  ****10 week term   -  9 credits  **
**   ****3 week term    -  3 credits **
**40 week program/ 36 credit hours**

**Nonstandard Terms**

## Nonstandard Terms

**  **

**  ****Calculating enrollment status for each payment period (5 terms):**
**   ****8 week term  - 6 credits    **
** ****10 week term -  9 credits**
**   ****9 week term -  9 credits**
** ****10 week term -  9 credits **
**   ****3 week term -  3 credits**
**  ****The loan is certified for 37 weeks long with 33 semester credit  hours. **
**  ****The remainder of the program is  3 weeks long containing 3 semester credit hours.**

**Nonstandard Terms**

## Nonstandard Terms

**8 weeks**

**Start date*******

**Week 8**

**Week 18**

**Week 27**

**Week 37**

**3 cr**

**6 cr**

**9 cr**

**3 cr**

**3 cr**

**9 cr**

**3 cr**

**10 weeks**

**9 weeks**

**10 weeks**

**2nd Loan Disbursement**

**The academic year for this program is defined as 24 semester credits and 30 weeks of instructional time.  Loan is certified for 37 weeks containing 33 semester hours. **
**Pell disbursements are for each nonstandard term.  Second loan disbursement cannot be made until week 21 when half the time & work have been completed. **

**Nonstandard Terms**

## Nonstandard Terms

** ****Calculating Enrollment Status for Each Payment Period**

**    ****24  x   **_**8**_

**              ****30**

-  =

**  ****6.4 cr**

**Number of credit hours in the academic year**

**Weeks of instructional time in the payment period**

**Weeks of instructional time in the academic year**

**x**

**Round up to 7 semester credits required **
**for full-time**
**                    **

**    ****24  x  **_**10**_

**   ****30**

** ****=**

**8 cr**

** ****24  x  **_** 9**_

**          ****30**

**=**

**7.2 cr**

**   ****Round up to 8 semester credits required**
**   ****for full-time**

**Nonstandard Terms**

## Nonstandard Terms

**    ****24  x  **_**10**_

**   ****30**

** ****=**

**8 cr**

** ****24  x   **_**3**_

**          ****30**

**=**

**2.4 cr**

**   ****Round up to 3 semester credits required**
**   ****for full-time**

**Nonstandard Terms**

## Nonstandard Terms

**Example - Pell Calculations**
**Annual  X   Weeks of instructional time     =    Payment for the     Award         **_**in the payment period           **_**         payment period**
**                     ****Weeks of instructional time**
**                     ****in the academic year **
**                     ****(as defined by the school)**
**                                                                         **
**$3,000****	****  X                  **_** 8**_**	****                         =     $800**
**                                   ****30**
**$4,000****	****  X                  **_**10**_**	****                         =     $1,333**
**	****                       ****30**

**Nonstandard Terms**

## Nonstandard Terms

**                                                                         **
**$4,000   X                   **_** 9**_**	****                         =     $1,200**
**                                   ****30****	**
**$4,000****	****  X                  **_**10**_**	****                         =     $1,333**
**	****                       ****30**
**$4,000   X                   **_**3**_**	****                         =     $400**
**                                   ****30****	**
_**	**_

**Nonstandard Terms**

## Nonterm Programs

**Nonterm Programs**

## Nonterm

**  ****At least 30 weeks of  instructional time and 24  **
**    ****semester hours, 36 quarter hours, or 900 clock hours**
**  ****Week of instructional time = 7 consecutive days in **
**    ****which at least one day of regularly scheduled **
**    ****instruction, examinations, or preparation for**
**    ****examinations occurs**
**   ****Instructional time = periods of orientation, counseling,**
**     ****vacation, or other activity not related to class **
**     ****preparation or examination**** **

**Nonterm**

## Nonterm

**Final Regulations published November 1, 2002**
**  ****Require for nonterm credit hour programs that prior**
**    ****to a second Pell Grant disbursement both half of the**
**    ****work **_**and**_** half of the time must be completed.  **

**Nonterm**

## Nonterm

**If the program meets only 8 hours a week, each calendar week would be considered to be a week of instructional time.  Therefore, a minimum of 30 calendar weeks could meet the minimum requirement for an academic year.**

**Nonterm**

## Payment Periods for Nonterm Programs

**Payment Periods for Nonterm Programs**
**1.  When the student is enrolled in a program that is**
**     ****one academic year or less in length**
**First payment period - Period of time in which the student successfully completes the first half of the program.**
**Second payment period -  Period of time in which the student successfully completes the second half of the program. **

**Nonterm**

## Nonterm

**2****.  When the student is enrolled in a program that is **
**      ****more than one academic year **
**For the first academic year and any subsequent full academic year **
**First payment period - Period of time in which the student successfully completes the first half of the**
**coursework for the academic year.**
**Second payment period - Period of time in which the student successfully completes the second half of the coursework for the academic year.**

**Nonterm**

## Nonterm

**For the remainder of a program that is more than one-half an academic year but less than a complete academic year**
**First payment period - Period of time in which the student successfully completes the first half of the**
**remaining coursework.**
**Second payment period - Period of time in which the student successfully completes the second half of the remaining coursework.**

**Nonterm**

## Nonterm

**For the remainder of a program that is not more than half an academic year**
**The payment period is the remainder of that program**

**Nonterm**

## Nonterm

**Calculation of Enrollment Status**
**Enrollment is always considered to be full-time for **
**    ****Pell calculations (except COA).  For the loan and campus-based programs the student’s actual enrollment status would be used. **
**Certifying and Disbursing Loans**
**For a clock-hour program or a credit-hour program that does not use terms, the minimum period for which a loan may be certified is the lesser of **
** ****the academic year,**
** ****the length of the program, or **
** ****the remaining portion of the student’s program.**

**Nonterm**

## Nonterm

**The school may not deliver a second loan disbursement until the latter of **
** ****The calendar midpoint between the first and **
**            ****last scheduled days of the loan period; or**
** ****The date that the student has completed half  ****	****of the**
**      ****academic coursework or clock hours in he loan period.**

**Nonterm**

## Nonterm

**Pell Formula **
**  ****Pell formula **_**4**_** is used.**
**Measuring Progress **
**  ****Progress is measured by the number of credit hours **
**  ****or clock hours successfully completed.**

**Nonterm**

## Nonterm

**Nonterm Bachelor’s Degree Completion Program – Self Paced**

**Example 1 – Student completes 12 semester credits in 15 weeks of a 40-week academic**** ****year.**
**Week 1****	****	****           ****Week **** **** Midpoint****	****                                    ****Week 40**
-                                                       **15**
**I_____________________________I________****I****_________________________________________I**
**Disburse****	****    ****	****       ****Disburse 2****nd**** **
**1⁄2 of Pell ****	****                    ****1⁄2 of loan and **
**and Loan****	****                    ****2nd 1⁄2 of Pell**

**Nonterm**

## Nonterm

**Example 2 –  Same program but student does not**
**complete 12 semester credits until week 22.**
**Week 1****	****	****       ****            Mid-****      ****Week 22****	****             ****Week 40**
**                        ****                             ****point**
**I_______________________________________I______****I****_________________________________I**
**Disburse****	****	****               ****Disburse 2****nd**** ****	**
**1⁄2 of Pell ****	****	****	****  ****1⁄2 of Pell**
**and Loan****	****	****	****  ****and loan**

**Nonterm**

## Student Eligibility

## Student Eligibility

**  **
**  ****To be eligible for Title IV aid a student must be **
**    ****enrolled or accepted for enrollment in an **
**    ****eligible program.  **
**A student is considered to be meeting this **
**    ****standard if when **_**accepted for enrollment**_** he or**
**    ****she is required to take a specified number of **
**    ****courses and maintain a certain grade point **
**    ****average in order to continue that enrollment.**** **
**A student is not considered to be meeting this **
**          ****standard if, when originally beginning to take **
**          ****coursework, his or her **_**eventual enrollment**_** is **
**          ****based on some subsequent activity (i.e., test scores **
**          ****and/or transcripts being received, etc.)**** **
**      **

## Student Eligibility

**    ****projected plans, they may need to be **
**    ****recalculated when the student’s enrollment is**
**    ****finalized.  **
**  ****Federal Pell Grants:  if a student does **
**    ****not begin attendance in all of his or her classes **
**    ****and this results in a change of enrollment status,**
**    ****the Federal Pell Grant award must be **
**    ****recalculated.**
**  ****FFEL and Direct Loans:  each time a**
**   ****disbursement is received, school must confirm **
**   ****that the student is eligible (including at least **
**   ****half-time enrollment).**

**Student Eligibility**

## Miscellaneous Loan Issues

## Miscellaneous Loan Issues

**Miscellaneous Loan Issues**

**Type of Academic Year**
**  ****Scheduled Academic Year:  term-based credit-**
**    ****hour programs may use.**
**  ****Borrower-based Academic Year:  nonterm credit- **
**    ****hour programs and clock-hour must use.  **
**    ****Term-based programs may use.**

## Miscellaneous Loan Issues

**Frequency of Annual Loan Limits **
**In general, once a student has reached the annual loan limit, he or she cannot receive another loan until he or she begins a new academic year.**

**Miscellaneous Loan Issues**

## Miscellaneous Loan Issues

**Loan Proration**
**While loans for graduate students are not prorated, if the academic year contains less than 30 weeks of instructional time, a student is not eligible to receive another loan until the student has completed  30 weeks of instructional time.**

**Miscellaneous Loan Issues**

## Withdrawal Issues

## Withdrawal Issues

**  **
**  ****If a recipient of Title IV aid withdraws during a **
**   ****payment period (or a period of enrollment), the **
**   ****school must calculate the amount of Title IV **
**   ****aid the student earned.  Unearned Title IV funds **
**   ****must be returned to the Title IV programs.**
**  ****If minisessions or minicourses are combined into one **
**    ****term, the return of Title IV funds must be applied when**
**    ****the student does not complete any coursework.**
**  **

## Withdrawal Issues

**  ****If minisessions are not combined into a term, the**
**   ****return of Title IV formula must be applied when**
**   ****the student withdraws from or drops out of all**
**   ****classes in the individual session.**
**  ****If a student who is taking courses sequentially, **
**   ****completes a course and does not enroll in the **
**   ****subsequent course, he or she is considered to have **
**   ****withdrawn.**

**Withdrawal Issues**

##  Nontraditional Education Activities

## Nontraditional Education Activities

**Distance Education Demonstration Program**
**  ****Clear trend toward distance education**
**  ****Continued concern about possibilities for fraud **
**    ****and abuse**
** **
**  ****Requires strict monitoring**
**  ****Administrative capability criterion**

## Nontraditional Education Activities

**  ****Test quality and viability**
**  ****Increase access**
**  ****Help determine**
**  ****Most effective means of delivering **
**      ****Distance Education**
**  ****Statutory and regulatory changes needed**
**  ****Appropriate level of student assistance**

**Nontraditional Education Activities**

## Nontraditional Education Activities

**  ****2 plus 2 programs**
**  ****Course sharing**
**  ****Increasing capacity to meet student needs  **
**  ****New methods of enrollment tracking**
**  ****Excluding living expenses from the calculation **
**  ****of cost of attendance**
**  ****Multiple disbursements - just in time delivery**
**  ****Methods of default management**

**Nontraditional Education Activities**

## Nontraditional Education Activities

** ****Adapting student aid requirements to distance**
**   ****contexts is extremely difficult.**
**  ****Statutory and regulatory provisions present **
**   ****obstacles to administering aid to distance **
**   ****education students.**
**  ****Systems designs present obstacles to new models **
**   ****of providing aid.**

**Nontraditional Education Activities**

## Nontraditional Education Activities

**Many of these programs allow students significant flexibility in terms of**
**  ****When they begin their work and how long it**
**    ****takes them to complete a given unit of work.**
**  ****How many units of work they might wish to **
**    ****undertake in a given period of time.**
**  ****When they wish to take vacations or breaks.**

**Nontraditional Education Activities**

## Nontraditional Education Activities

**There is no common understanding of the meaning of the terms we use to distinguish among various kinds of education  **
**  ****Distance Education**
**  ****Independent Study**
**  ****Technologically delivered instruction**
**  ****Correspondence**
**  ****Blurred boundaries**

**Nontraditional Education Activities**

## Contact Information

**Policy, Planning and Innovation**
**Office of Postsecondary Education**
**(202) 502-7502**
**fred.sellers@ed.gov**

**Contact Information**