partra~1.pdf  part rate index-235.pdf part rate index-248-250.pdf Participation Rate Index Appeal File Size: 93KB Number of Pages: 20 Requires 4.0 or greater of the free Adobe Acrobat Reader software. Participation Rate Index Appeal This section is divided into two parts. The first part (pages 231 through 244) provides background information on the participation rate index appeal and outlines the process and procedures for submitting a participation rate index appeal. The second part (pages 245 through 250) provides an example of a situation that would warrant the submission of a participation rate index appeal and sample material as it would pertain to a participation rate index appeal. To understand the participation rate index appeal process, the U.S. Department of Education (Department) recommends that the reader review both parts of this section. In addition, since a participation rate index appeal is a type of exceptional mitigating circumstances appeal, please refer to the “Exceptional Mitigating Circumstances Appeal” section beginning on page 221 for additional information that applies to all exceptional mitigating circumstances appeals, including the participation rate index appeal. What is a participation rate index? A participation rate index is the percentage of a school’s students that obtain Federal Family Education Loan (FFEL) Program and/or William D. Ford Federal Direct Loan (Direct Loan) Program loans multiplied by the school's cohort default rate. Please refer to page 235 for a more in-depth discussion on how to calculate a participation rate index. Which schools are eligible to submit a participation rate index appeal? Only a school that can demonstrate that it has a participation rate index equal to or less than 0.0375 for any of the three most recent fiscal years (FY) for which data are available AND is subject to the following sanctions as a result of the school's official cohort default rates may submit an exceptional mitigating circumstances appeal based upon its participation rate index: initial loss of FFEL Program, Direct Loan Program, and/or Federal Pell Grant Program eligibility; OR extended loss of FFEL Program, Direct Loan Program, and/or Federal Pell Grant Program eligibility. Please refer to pages 36 through 38 of the "Cohort Default Rate Effects" section for information on sanctions and consequences based on official cohort default rates. A participation rate index appeal does NOT alleviate the consequences associated with a cohort default rate that exceeds the limitation, suspension, and/or termination (LS&T) threshold (i.e., 40.1 percent or greater). However, if a school is subject to initial or extended loss of eligibility to participate in the FFEL Program, Direct Loan Program, and/or Federal Pell Grant Program AND LS&T of all Title IV Student Financial Assistance Programs, the school may submit a participation rate index appeal to alleviate the initial or extended loss of eligibility to participate in the FFEL Program, Direct Loan Program, and/or Federal Pell Grant Program.
This checklist on the next page summarizes the eligibility criteria for a participation rate index appeal. A school should review the checklist to determine if it can appeal on the basis of its participation rate index.
How can a participation rate index appeal affect a school’s loss of eligibility to participate in the FFEL Program, Direct Loan Program, and/or Federal Pell Grant Program? If the Department determines that a school has a participation rate index of 0.0375 or less for any of the three most recent fiscal years for which data is available, the Department will withdraw its notification of loss or extension of loss of the school’s eligibility to participate in the FFEL Program, Direct Loan Program, and/or Federal Pell Grant Program.1 Which cohort default rates can be used to determine a participation rate index? A school may choose to base its participation rate index on any of its three most recent official cohort default rates (in this case FY 1998, FY 1997, and/or FY 1996). ____________________ 134 CFR Section 668.17(c)(1)(ii)(A)
Because a school can submit a participation rate index appeal for any of its three most recent official cohort default rates, a school that has submitted a successful participation rate index appeal for either of its two previous official cohort default rates (in this case FY 1997 and/or FY 1996) will not be subject to initial or extended loss of FFEL Program, Direct Loan Program, and/or Federal Pell Grant Program eligibility. The Department will automatically identify any school that has submitted a successful participation rate index appeal for either of the two previous cohort periods. These schools will be notified that the school is NOT subject to loss of eligibility to participate in the FFEL Program, Direct Loan Program, and/or Federal Pell Grant Program even if the schools' three most recent official cohort default rates are equal to or greater than 25.0 percent. Are participation rate index appeals based on a specific period of time? Yes, the school must base the participation rate index appeal on a 12-month period that has ended during the six months immediately preceding the fiscal year for which the cohort of students used to calculate the school’s cohort default rate is determined.2 Please refer to pages 226 through 229 of the “Exceptional Mitigating Circumstances Appeal” section for a description of acceptable 12-month periods. ______________________ 234 CFR 668.17(c)(1)(ii)(A) How does a school calculate its participation rate index? Participation rate index calculation File Size: 96KB; Number of Pages: 1 Requires 4.0 or greater of the free Adobe Acrobat Reader software. To succeed on a participation rate index appeal, the school must have a participation rate index of 0.0375 or less. Please refer to the next page for an example.
Example: Welding School's FY 1998 official cohort default rate is 25.0 percent. Welding School had a total of 200 regular students enrolled on at least a half-time basis during any part of the selected 12-month period. Of those 200 students, 14 borrowers received an FFEL Program loan for a loan period that overlapped the selected 12-month period by at least one day and 12 different borrowers received a Direct Loan Program loan for a loan period that overlapped the selected 12-month period by at least one day. Welding School's participation rate index is calculated as follows: Which students are included in the denominator of the participation rate index? To be included in the denominator of the participation rate index, a student must have been—3 a "regular student" (i.e., a student that enrolled, or was accepted for enrollment, at a school for the purpose of obtaining a degree, certificate, or other recognized educational credential offered by that school); enrolled on at least a half time basis; AND enrolled for at least one day in the 12-month period selected by the school. _______________________ 3CFR Section 668.17(c)(1)(ii)(A)
A student's entire enrollment period does NOT have to fall within the selected 12-month period. A student that enrolled prior to the 12-month period but completed/withdrew from the program of study during the 12-month period is considered to have been enrolled during the 12-month period. In addition, a student that enrolled during the 12-month period but completed/withdrew from the program of study after the 12-month period is considered to have been enrolled during the 12-month period. Finally, a student that enrolled prior to the 12-month period and continued to be enrolled until after the 12-month period is considered to have been enrolled during the 12-month period. Which borrowers are included in the numerator of the participation rate index? To be included in the numerator of the participation rate index, the borrower must first be included in the denominator of the participation rate index calculation. If a borrower is included in the denominator of the participation rate index calculation and meets the following conditions, the borrower will also be included in the numerator of the calculation:4 the borrower received an FFEL Program and/or Direct Loan Program loan; AND the FFEL Program and/or Direct Loan Program loan period overlaps the 12-month period selected by the school by at least one day. If any part of the loan period falls within the 12-month period, the student must be identified and counted as having received a loan. ______________________________ 4HEA Section 435(a)(6)(A)
What are the time frames and procedures for submitting a participation rate index appeal? Timing is critical when submitting a participation rate index appeal. The following is a step by-step description of the time frames and procedures associated with a participation rate index appeal. Step 1: Within 30 calendar days 34 CFR Section 668.17 of receiving the school's official cohort default rate notification letter, a school must review this Guide to determine if the school is eligible to submit a participation rate index appeal. Please refer to page 232 for a detailed discussion regarding which schools are eligible to submit a participation rate index appeal. Step 2: If the school is eligible to submit a participation rate index appeal, within the time frame described in Step 1, (i.e., within 30 calendar days of receiving the school's official cohort default rate notification letter) a school must compile a spreadsheet to list and count the students who will be included in the school’s participation rate index. A school should refer to the Participation Rate Index Appeal SPREADSHEET and SPREADSHEET INSTRUCTIONS on pages 249 and 248, respectively, to assist in developing the list. If a school does not have any students that received FFEL Program and/or Direct Loan Program loans with loan periods that overlap the selected 12-month period, the school does NOT have to submit a participation rate index appeal SPREADSHEET to the Department. However, the school must send the Department, within 30 calendar days of receiving the school’s official cohort default rate notification letter, a LETTER which identifies the school's selected 12-month period and indicates that the school did not have any students that received FFEL Program and/or Direct Loan Program loans with loan periods that overlap the 12-month period in question. If a school does have students that received FFEL Program and/or Direct Loan Program loans that have loan periods that overlap the school’s selected 12-month period, the school must follow the steps outlined in this guide in order for the Department to consider the school’s participation rate index appeal. A school should provide the following information on the spreadsheet: the school’s name and OPE ID Number; the school's official cohort default rate that will be used to calculate the school's participation rate index; the beginning and ending dates for the 12-month period on which the school is basing its participation rate index; For information on selecting an acceptable 12-month period, please refer to pages 226 through 229 of the “Exceptional Mitigating Circumstances Appeal” section. the Social Security numbers, in numerical order, of all the regular students enrolled on at least a half-time basis during any part of the selected 12-month period; These are the students that will be included in the denominator of the participation rate index calculation. for each Social Security number, list the student’s name; for each student, provide beginning and ending enrollment dates [For all enrollment dates, include the month, day, and year (MM/DD/CCYY)];
If a student was enrolled at the school more than once during the selected 12-month period, list each set of enrollment dates. However, the student will only be counted once in the calculation. if the student received an FFEL Program and/or a Direct Loan Program loan with a loan period that overlaps the selected 12-month period, enter the type of loan(s) received (if not, do not make an entry); These are the borrowers that will be included in numerator of the participation rate index calculation. for each borrower with an FFEL Program loan and/or a Direct Loan Program loan identified, provide the beginning and ending dates of the loan period; If the borrower has more than one loan, list the loan periods associated with each loan. However, the borrower is only counted once in the calculation. Step 3: Within the time frame described in Step 1, (i.e., within 30 calendar days of receiving the school's official cohort default rate notification letter) a school must calculate its participation rate index. Identify the school’s relevant official cohort default rate which can be found on the school’s official cohort default rate notification letter. From the Participation Rate Index Appeal SPREADSHEET created in Step 2, count the number of borrowers who received an FFEL Program and/or Direct Loan Program loan during the selected 12-month period and whose loan periods overlap the 12-month period by at least one day. These are the borrowers who will be included in the numerator of the participation rate index. From the Participation Rate Index Appeal SPREADSHEET created in Step 2, count the total number of students listed on the spreadsheet. These are the students who will be included in the denominator of the participation rate index. Divide the number of borrowers who received an FFEL Program and/or Direct Loan Program loan during the selected 12-month period and whose loan periods overlap the 12-month period by at least one day by the number of students listed on the spreadsheet and multiply the result by the relevant official cohort default rate identified by the school. This is the school’s participation rate index. For a successful appeal, the school’s participation rate index must be 0.0375 or less. Step 4: Within the time frame described in Step 1, (i.e., within 30 calendar days of receiving the school's official cohort default rate notification letter) the school must submit the following to the Department at the address provided on page 244: a letter indicating that the school is submitting its participating rate index appeal; A school should refer to the format of the Sample Participation Rate Index Appeal LETTER on page 250. AND the Participation Rate Index Appeal SPREADSHEET created in Step 2. Schools are not required to submit an independent auditor's attestation to support the school's participation rate index appeal. The following page provides an overview of the MATERIAL that should be included in a school's participation rate index appeal. Within the time frames described in Step 4 on page 242, the following MATERIAL, to support a participation rate index appeal, should be sent to the Department's Default Management Division at the address shown on page 244.
The Department will not consider information submitted after the regulatory deadline. The Department will send the school written notification of its decision. If sent by commercial overnight mail/courier delivery, send the school’s participation rate index appeal to: U.S. Department of Education Default Management Division ATTN: Participation Rate Index Appeal Portals Building, Room 6300 1250 Maryland Avenue, SW Washington, DC 20024 If sent by U.S. Postal Service, send the school’s participation rate index appeal to: U.S. Department of Education Default Management Division ATTN: Participation Rate Index Appeal Portals Building, Room 6300 400 Maryland Avenue, SW Washington, DC 20202-5353 The Department will not accept any appeal correspondence by facsimile (fax) or e-mail. The Department recommends that a school send all appeal correspondence return receipt requested or via commercial overnight mail/courier delivery. This will be useful to a school if it is asked to authenticate the timeliness of its appeal. A school should maintain the documentation which verifies the receipt of the appeal related material. In addition, a school should retain copies of all documentation submitted as a part of the appeal process. Part II of the “Participation Rate Index Appeal” section outlines a situation in which a school would benefit from submitting a participation rate index appeal. This part also provides sample material that should be referenced by a school when compiling the material that must be submitted by a school during the participation rate index appeal process. EXAMPLE of a situation that warrants the submission of a Participation Rate Index Appeal.................................................247 Participation Rate Index Appeal SPREADSHEET INSTRUCTIONS..............................................................................248 Sample Participation Rate Index Appeal SPREADSHEET...........249 Sample Participation Rate Index Appeal LETTER.........................250 Participation Rate Index Appeal
Pg 248 - Spreadsheet Instructions Pg 249 - Spreadsheet Pg 250 - Letter File Size: 95KB; Number of Pages: 3 Requires 4.0 or greater of the free Adobe Acrobat Reader software. |
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