DEGREE AUDIT REGULATIONS
The Department of Education Financial Aid regulations state that students are only eligible to receive financial aid funds for courses that count towards their degree or certificate program.
This regulation can be located in the Federal Student Aid Handbook (pages 1-13 to 1-14). You can locate the following exact regulation on the mentioned pages.
"If a student is enrolled in courses that do not count toward his degree, certificate, or other recognized credential, they cannot be used to determine enrollment status unless they are eligible remedial courses. This means you cannot award the student aid for classes that do not count toward his degree, certificate, or other recognized credential."
RETURN OF FUNDS POLICY
The Higher Education Act of 1998 resulted in a major change in Federal Financial Aid regulations in reference to the refund and repayment of Title IV aid. Effective with the 2000-2001 academic year and continuing with subsequent academic years.
"When a recipient of Title IV grant or loan assistance withdraws from an Institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance...that the student earned as of the student's withdrawal date…The institution must return, in the order specified…the lesser of…(i) The total amount of unearned title IV assistance to be returned…or (ii) An amount equal to the total institutional charges incurred by the percentage of title IV grant or loan assistance that has not been earned by the student…After the institution has allocated the unearned funds for which it is responsible…the student must return assistance for which the student is responsible…" (CFR 668.22).
The Department of Education considers a student who earns all F's to have unofficially withdrawn unless an instructor can prove otherwise. Students in this category must repay 50 percent of disbursed Title IV funds.
Title IV aid is earned in a prorated manner on a per diem basis up to and including the 60 percent point in the term. After the 60 percent point all aid is considered earned. The percentage earned is calculated by dividing the number of days completed by the number of days in the payment period. It is the unearned percentage of aid that determines the amount that must be returned to the Title IV program(s). The College, as well as the student, may be required to return to the federal government, the unearned portion of the Title IV funds.
Beginning with the 2000-2001 academic year, the institution will require students to repay charges resulting from the institutions portion of the return of unearned Title IV aid. This may cause the student to owe both the College and the federal government.
STAFF CODE OF CONDUCT POLICY
PREAMBLE
This Code of Conduct describes the policies and rules of Del Mar College (DMC) relating to student loans. The Code applies to all employees, officers and agents of DMC. It is intended to ensure that the College and its employees and agents comply fully with state and federal laws governing this area, and that all College decisions concerning student loans are made with integrity, free from conflicts of interest, and in the best interests of the borrowers. Ensuring the integrity of the student loan process is critical to providing fair and affordable access to higher education at DMC.
DMC is a full participant of the William D. Ford Federal Direct Loan (Direct Loan) Program. DMC students finance the cost of their education in various ways. The College is committed to allowing students complete freedom of choice in how they finance their education. Many will choose to borrow money under the Federal Direct Loan programs, but many take loans from private lenders, in some cases as part of federal programs and also in addition to them. This code pertains to loans taken from PLUS and private lenders.
CODE OF CONDUCT
Compensation from Lenders
DMC will not, directly or indirectly, solicit, accept or receive any Gift or payment from or on behalf of a Lender, in exchange for
- referring borrowers to the Lender,
- loan volume from DMC borrowers,
- placement on a preferred lender list, or
- for giving that Lender any advantage or consideration related to the lender's marketing or lending to DMC borrowers.
DMC will not engage in revenue sharing with a Lender. Revenue sharing is any arrangement by which a Lender pays DMC a percentage of the principal of a loan taken out by a borrower at DMC.
No DMC employee with responsibilities relating to financial aid may, on his or her own behalf or on behalf of another, directly or indirectly, solicit, accept or receive any Gift from or on behalf of a Lender. No employee whose responsibilities do not relate to financial aid may on his or her own behalf or on behalf of another, directly or indirectly, solicit, accept or receive any Gift from or on behalf of a Lender in return for providing the Lender any advantage or consideration related to the Lender's marketing or lending to DMC borrowers. Any person who learns of a Lender giving or attempting to give a Gift in violation of the above shall report that information to the DMC In-House Counsel.
"Employee" or "school employee" means any employee, agent, student financial aid contractor, director, officer or trustee of the school. For purposes of the Code provisions relating to gifts and stock ownership, this term includes family members of the employee. For purposes of this Code, this term includes family members living in the same household as the employee.
Nothing in this Code shall be construed to affect or prevent the philanthropic activities of financial institutions that are unrelated to educational loans.
Lender Boards
Neither DMC nor any employee may receive from a Lender any remuneration or reimbursement of expenses for serving on, performing duties for, or attending meetings of, a Lender's advisory board or council. Any employee who serves on a Lender advisory board may have appropriate, related expenses reimbursed by DMC in accordance within then-applicable DMC policy.
Nothing in this Code shall prohibit
- an employee from serving on an advisory board of a Lender that is unrelated in any manner whatsoever to educational loans or
- an employee whose duties do not relate to financial aid from serving on the board of directors of any publicly traded or privately held company.
- staffing of DMC Offices
No employee or agent of a Lender may staff any DMC financial aid-related office or be identified to any borrower or potential borrower as an employee, representative or agent of DMC.
Information Disclosure to Borrowers
Any borrower or potential borrower who consults a DMC Financial Aid Office will be informed of all available financing options available to him or her under Title IV of the Federal Higher Education Act of 1965, as amended, including information on any terms and conditions of available loans under that Title that are more favorable to the borrower, before DMC may process or accept funds from a private loan.
No Lender may provide in-person initial or exit counseling to DMC borrowers.
High Risk Loans
DMC will not enter into any agreement or otherwise provide any high risk loan in exchange for a promise to give concessions or other advantages to Lenders that may prejudice other borrowers or potential borrowers.
Preferred Lenders Lists
The College will not publish or give students a preferred lender list. The College will not deny or otherwise impede a borrower's choice of lender.
DMC will not direct any PLUS or private loan borrower to any electronic master promissory note or other agreement that does not provide a reasonable and convenient alternative for the borrower to complete a master promissory note with any approved lending institution.
Reporting Violations
Any person who has reason to believe DMC or an employee has violated this code of conduct should report that information promptly to the In-House Counsel. Reports may also be made to the Office of the Vice President of Student Affairs at 361-698-2250.
Penalties
Penalties for violating this code may include disciplinary action, up to and including separation from the College, as well as civil and criminal liability.
Definitions
"Gift" means any discount, favor, gratuity, inducement, loan, stock, thing of value, or other item having more than nominal value. It includes payment of meals and entertainment expenses but does not include
- a Lender's own brochure or informational material,
- food or informational materials provided as an integral part of training designed to improve the lender's service to DMC and which leads to the professional development of DMC staff, or
- food or receptions at conferences that are open to all conference attendees.
"Lender" means
- any entity that, itself or through an affiliate, makes educational loans to finance higher education expenses or that securities such loans;
- any entity or association that guarantees educational loans, or
- any industry, trade or professional association or other entity that receives money, related to educational loan activities, from any entity described in a) or b) above.
"High Risk Loan" means a loan that, because of a borrower's credit history (or lack thereof), would not ordinarily be available to a borrower in the absence of DMC's agreement to provide concessions or anything of value to the Lender.
