No, as specified in Dear Colleague Letter Gen-03-06, even if the school knew the reason for the withdrawal it would still have been required to complete the R2T4 calculation and return any unearned aid to the appropriate program(s) under federal regulation 34 CFR 668.22.

In addition, if the refund calculation had resulted in a grant overpayment that the student would otherwise be responsible to repay and was referred to the Department for collection at the time of withdrawal, the Department should be notified to correct the reason for the overpayment to indicate “Military Mobilization”.
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How does loan consolidation affect a school’s cohort default rate (CDR)?

If Stafford loans are repaid as a result of a consolidation, the loans would still be counted in the relevant CDR based on the date they entered repayment (as if they weren’t consolidated). Thus, if a student defaults on a consolidation loan during the cohort period in which the underlying loans entered repayment, the loans are included in the CDR for the school where the loan was received.

For example: A student entered repayment on their Stafford loans in Fiscal Year (FY) 2005, and they were repaid by a consolidation loan approved in FY 2006. If the student defaults on the consolidation loan by the end of FY 2007, the underlying Stafford loans would be included in the 2005 CDR.
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Can a loan be disbursed in a single disbursement if the loan period is only one semester?

Yes, the regulations permit that a loan may be singly disbursed if:

the date of the first disbursement is scheduled past the halfway point in the payment period, or
the student is enrolled in a school with a cohort default rate of less than 10% for each of the three most recent fiscal years for which data are available, and the loan period is not more than one semester, trimester, quarter, or four month period for schools with non-standard terms, or
the school is an eligible home institution certifying a loan to cover the student's cost of attendance in a study abroad program and has a cohort default rate of less than 5% for the single most recent fiscal year for which data are available.

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A student obtained Stafford loans for attendance at School A. Upon the student's withdrawal, School A conducted exit counseling requirements. The student subsequently transferred to School B, but did not borrow additional loans at School B. Is School B required to conduct exit counseling at the time the student leaves School B.

HESC received guidance from the U. S. Department of Education (ED) regarding this issue. ED responded that "under the statutory and regulatory scheme, the responsibility for the exit interview with a borrower who transfers and does not borrow again rests with the school at which the borrower received the loan." Although School B can perform exit counseling to refresh a student’s knowledge of available repayment options and responsibilities, School B is not required to do so.
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A student wishes to attend a medical school in a foreign country that is not currently FFELP eligible. How can the school become FFELP eligible.

The foreign school can participate in the FFELP program if it meets the definition of "Institution of Higher Education," and it is approved by the US Department of Education (ED). For additional information on the eligibility of foreign medical schools, students should ask school officials to contact ED's Foreign Schools Team at 202-377-3168.
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If a student withdrew and the school returned Title IV funds, can the school certify the student for the amount that was returned if the student returns to finish up 200 hours of a 600 hour program?

If a student withdraws from a clock hour program, but re-enters that same program within 180 days, the school is required to place the student in the same payment period in which the student was originally enrolled when the withdrawal occurred. The student is again eligible to receive any loan funds for which he or she was eligible prior to the withdrawal, including any funds that may have been returned by the school or student as part of the return of the Title IV fund process. If, however, the student returns after 180 days, the school would have to calculate a new payment period based on the number of hours (200) remaining in the payment period.
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If an independent student is a member of a religious order, can he/she be given additional unsubsidized loans?

Yes. A member of a religious order cannot receive subsidized student loans. If they have received unsubsidized loans, and they are an independent student who shows the need, they can qualify for additional unsubsidized loans.
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If a student is enrolled half-time in 2 different schools for the same academic year, can the student receive student loans for attendance at both schools?

Yes. However, school officials certifying student loans for that student at each school should work together to ensure that the student is not overawarded or receiving more loan funds for the academic year than they are entitled to receive for attendance cost at each school.
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Can a borrower in a clock-hour program (e.g. 2100 clock hours) ever be certified as class year 3?

Yes, if an associate degree or higher is required for admission to the program, or if the program is longer than 1800 hours.
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Will HESC accept a power of attorney on a school's award letter?

HESC has no jurisdiction over a school's award letter. The school should establish its own policy on this matter.
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Is the definition of an "academic year" the same for graduate and undergraduate programs of study?

The definition of an academic year for a graduate program of study is defined as 30 weeks of instructional time. An academic year for an undergraduate program of study is defined as 30 weeks of instructional time and 24 semester or trimester hours, 36 quarter hours, and 900 clock hours.
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A student no longer lives with her parents, has an income, and files her own tax returns. Shouldn't the student be considered independent?

To be considered independent for student loan purposes, a student must be 24 years of age by December 31 of the aid year, unless one of the special conditions are met. They are:

orphan or ward of the court;
veteran of U.S. Armed Forces;
graduate or professional student;
married;
has dependents other than a spouse
determined to be independent by a financial aid administrator based on his or her professional judgement of the student’s unusual circumstances.

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Can expenses related to a disability be included in the cost of attendance?

An allowance for reasonable expenses related to the disability may be included in cost of attendance if they are not provided for by another assisting agency.
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Can a school disburse loan proceeds before verification is completed?

The school can either (1) withhold certification until verification is complete, or (2) certify the loan, but not disburse until verification is complete. If the school chooses the second option and verification is not completed within 45 days, the check must be returned to the lender. However, if all of the loan proceeds to be disbursed are unsubsidized funds, verification does not have to be completed prior to disbursement.
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If a school receives a late disbursement, how quickly must the disbursement be delivered to the student’s account?

Delivery of loan proceeds for a late disbursement to a student is the same time frame as a regular disbursement, i.e., 3 business days for proceeds disbursed by EFT or master check, and 30 days for proceeds disbursed by check.
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Schools must send exit interview information to HESC within 60 days of the exit counseling session if any borrower information has changed. What information is a school required to collect?

Schools are required to collect:

borrower’s expected permanent address
name and address of borrower’s expected place of employment
the address of next of kin

Also, the school must verify:

borrower’s name, address and Social Security number
driver license number
references

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How should a loan application be certified for a student who is taking a combination of undergraduate and graduate courses, which are part of a program leading to a graduate degree? For loan purposes, is the student considered a graduate or undergraduate?

Generally, if the student has been admitted by the Registrar’s Office as a graduate student, then the loan application may be certified at the graduate level. Federal regulations define a graduate or professional student as a student who:

is enrolled above the baccalaureate level
has completed the equivalent of at least three academic years of full-time study either before entrance into the program or as part of the program, and
is not receiving Title IV aid as an undergraduate for the same period of enrollment

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Can the school fill in the name of a lender on the loan application for the borrower?

No. The school may not fill in the name of a lender.
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If a student in a semester-based program has dropped to less than half-time midway through the semester, can the school certify an application for only the portion of the semester for which the student was enrolled at least half- time?

At the time of certification, the school may not certify a loan for a student who is attending less than half-time.
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Can a school charge a borrower a fee if the school defers the payment of tuition until the loan funds are disbursed?

Although HESC does not approve tuition charges for schools in New York State (approved by the NYS Education Department), the school may charge the student a fee. If it is a fee for that loan period, it may be taken out of the loan proceeds.
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