Within the
ever changing landscape of higher education, more and
more
colleges are developing hybrid programs
in order to attract and retain a population of students
who might otherwise not attend. One of those aforementioned
hybrid programs is the dual degree program. The dual
degree program is a graduate program into which students
are accepted with or without a previous baccalaureate
degree. Although this type of program is exciting to
the admissions office and prospective students, it
can be a challenge for the financial aid administer.
According
to federal regulations, “a graduate/professional
student is enrolled in a program that is above the
baccalaureate level or leads to a first professional
degree, has completed
the equivalent of at least 3 years 1 of
full-time study at an institution of higher education
(either
before
entrance to the program or as part of the program
itself), and is not receiving Title IV aid as an
undergraduate
student for the period of enrollment.” 2 Determination
of a student’s grade level as that of a graduate
student is not based exclusively on the fact that
the student was accepted into a dual degree program.
It
is incumbent upon the institution to determine whether
a
student admitted to that type of program is a graduate
or undergraduate student as this determination affects
the amount and type of aid for which the student
is eligible.
Proper grade level determination is
important for
remaining compliant when awarding and disbursing
aid for students
enrolled in a dual degree program. Three areas of
financial aid may be directly affected by the classification
of
the applicant as either an undergraduate or a graduate
student. They are grant eligibility, dependency status,
and loan level. Pell, SEOG, ACG and SMART grant eligibility
is contingent upon the grade level into which a student
is enrolled. A student must be an undergraduate student
without a prior baccalaureate degree in order to
be eligible for most of the aforementioned federal
grant programs.
Additionally, ACG and SMART are grade level specific
programs requiring the institution to determine the
exact grade level of its eligible students.
Furthermore,
grade level is one of the criteria that can be used
to designate a student as either dependent
or independent. Thus if a student is determined
to be an independent student by the institution based
exclusively
on the fact that s/he is enrolled at a graduate
student
level, then it is vital that the institution properly
establish the student’s grade level as this
can directly affect the amount and type of loan
for which
the student is eligible. If the proper grade level
is not established, the institution is likely to
over award
the student.
For example, the University of Szeged
Medical and Pharmaceutical Faculties, a Hungarian
institution
of higher education,
offers a six year medical dual degree program in
which students without a previous baccalaureate
degree can
enroll. 3 This
appears to be a common practice in Hungary and
becoming more so in the United States.
Unfortunately,
Szeged incorrectly established all of the students
enrolled in this dual degree program as graduate
students regardless
of whether or not the students met the prerequisite
three years of previous study at a secondary institution.
This
error caused the University to be out of compliance
and to over award student loans in the amount of
$724,365.
Szeged argued that Hungarian institutions
of higher education have never distinguished between
graduate
and undergraduate
students enrolled in these types of programs:
thus it was simply following common practice when awarding
aid
at the graduate level to all students of the
program.
Further Szeged argued that since the error was
brought to its attention by the US Department
of Education;
it had tightened up its procedures to ensure
that it was
compliant going forward. Therefore, Szeged request
relief from the findings. However, on April 24,
2007, Chief
Judge Ernest C. Canellos, siding with the Department
of Education, found that the Szeged had over
awarded student loans by awarding students federal
loans
beyond their annual loan limits and was liable
for the error.
Judge Canellos, adopting ED’s estimated
actual loss formula, ordered the College to repay
the
loan program in the amount of $62,015.31. 4
This
case is of significance to the financial aid
administrator, as it reveals how important
it is
to be aware of the
risks associated with alternative degree programming.
With proper planning, good communication between
institutional departments, regulatory expertise,
and a well developed
policy and process, your institution can avoid
findings of non compliance while instituting
new and innovative
programming.
1 “Change: The
definition of ‘‘graduate
or professional student’’ in § 668.2
is amended by using the term ‘‘year’’ instead
of ‘‘academic year’’ in paragraph
(3).” Summary: Final Rule; Federal student aid
programs, 11/1/07 page 62015 at IFAP.ed.gov website.
2 34
CFR 682.204(a)(5), (c)(2), and (d)(5)
3 In
the Matter of University of Szeged Medical and Pharmaceutical
Faculties, Docket No. 06-33-SP, located
at www.ed-oha.org United
States Department of Education Office of Hearings and
Appeals website.
4 FSA
then applied ED’s formula for determining its
estimated actual loss that was caused by the violations,
resulting in
a demand that Szeged return $62,015.31
to ED. See generally, in re Christian Brothers
University, Docket No. 96-04-SP,
U.S. Dep’t of Educ. (January 8, 1997). |
