Consortium & Contractual Agreements Jonna Marholz Brittany Tweed

Consortium & Contractual Agreements

Jonna MarholzBrittany Tweed

2

Topics

• Definition & Key Players• Requirements for

consortium/contractual• Awarding, Disbursing & Returning Aid• Enrollment Reporting & Monitoring• Satisfactory Academic Progress • Best Practices

3

Home Institution vs. Host Institution

Home • The school that is

granting a student a degree or other credential

• Must be a Title IV eligible institution as defined by the Dept. of Education

• Student must be enrolled or accepted for enrollment

Host • The school in which a

student is enrolled in credit-based coursework while “visiting”

• Must be a Title IV eligible institution as defined by the Dept. of Education

4

What is a Consortium Agreement?

A written agreement between two or more eligible institutions, under which a regular student is considered “enrolled” at an eligible home institution while completing part of their academic program at another eligible host institution in the U.S. or abroad.

5

What is a Contractual Agreement?

A written agreement between an eligible institution and an ineligible institution, allowing a regular student to be considered “enrolled” at an eligible home institution while completing part of their academic program at the other ineligible (or host) institution in the U.S. or abroad.

6

Comparison

• Differences between the two types of agreements are based on:1. Who may enter the agreement2. Portion of student’s program that the

host school may provide3. Responsibilities of home and host

schools for administration of Title IV funds under the agreement

7

Conditions of a Consortium Agreement

• In order for financial aid to pay for classes at a ‘host’ school:– The student must be enrolled in an aid

eligible program at the ‘home’ school– The course(s) at the ‘host’ school must be

applicable to the student’s ‘home’ school program

– The ‘home’ school must provide credits equal to at least 50% of the degree components if the two institutions are owned by the same corporation or individual

8

Conditions of a Consortium Agreement (cont.)

• Study Abroad Conditions:– Student must be officially admitted

into an aid eligible program at the ‘home’ school

– The ‘home’ school must accept study abroad courses for credit• Exception: Courses taken as part of a

study abroad program do not have to be part of the program requirements in which the student is enrolled at the home school as long as the conditions above are met.

9

Conditions of a Contractual Agreement• When entering into a contractual agreement

a home school may not contract with an ineligible institution that meets any of the following criteria:– Was terminated by the Dept. of Ed from

participating in Title IV programs;– Voluntarily withdrew participation in Title IV

programs due to administrative proceedings initiated by the Dept of Ed; or

– Had its application for certification or recertification to participate in Title IV aid revoked or denied by the Dept. of Ed.

10

Conditions of a Contractual Agreement (cont.)

• An eligible home school may contract with an ineligible school (groups of schools or individual schools) that meet any of the following criteria:– Offers credit based learning outside of the

classroom (ex// hospital)– Represents a foreign institution to provide

study abroad program and/or credit based learning that applies to the student’s degree program

11

Requirements for Written Agreements• Consortium/Contractual Agreements

must:– Be in writing and signed by each school– Effective with payment periods in which the

agreement is signed (may be retroactive to payment periods within the same FY)

– List the identity of the school granting the degree or certificate

– List student’s tuition, fees, room & board at each school

– List student’s enrollment status at each school

12

Requirements for Written Agreements (cont.)

• Procedures must be in place for determining the following for students who have consortium/contractual agreements in place:– Calculating & Disbursing Title IV awards– Monitoring continued academic/aid

eligibility (SAP)– Returning Title IV aid if the student

withdraws/fails to earn credit

13

Agreements Are Unnecessary When…

• Student is a regular student at both schools and financial aid isn’t being pursued

• Student is transferring in coursework• Home school is offering study abroad

opportunity

14

Awarding & Disbursing Aid

• Home school should be disbursing aid not the host school –Many schools will have host schools

signature required on consortium indicating that they agree to cancel the shared student’s aid

15

Monitoring Enrollment, SAP & Returning Aid

• Require students to submit transcripts for those schools where you cannot determine credit is earned

• Notate on consortium agreement courses taken via consortium agreement will be subject to your school’s SAP policy as if the courses were being taken at the home school

• Follow your school’s R2T4 policy when returning aid

16

Best Practices

• Work with other departments to streamline process for students– Academic Advisement– Student Accounts/OneStop– Registrar/Burser– Financial Aid– Study Abroad

17

Sample Process Flow

18

Resources

• IFAP | www.ifap.ed.gov• NASFAA Webinar | Consortium Agreements | 9/24/2014• NASFAA Training Track area conference presentations• OHE | www.ohe.state.mn.us

• Jonna Marholz jmarholz@css.edu• Brittany Tweed Brittany.tweed@anokaramsey.edu