Federal Student Aid - IFAP
   
Enclosure 1 - Distance Education Fact Sheet


I. Definitions

Correspondence course


A correspondence course is a home study course provided by an institution under which the institution provides instructional materials, including examinations on the materials, to students who are not physically attending classes at the institution. When students complete a portion of the instructional materials, the students take the examinations that relate to that portion of the materials and return the examinations to the institution for grading.

A home study course provided by an institution during an award year that is delivered in whole or in part through the use of video cassettes or video discs is a correspondence course unless the institution also delivers comparable instruction offered on the cassettes or discs to students physically attending classes at the institution during the same award year.

A course at an institution that may otherwise satisfy the definition of a telecommunications course (see below) is a correspondence course for purposes of Title IV, HEA eligibility, if the sum of telecommunications and other corre-spondence courses offered by that institution equals or exceeds 50 percent of the total courses offered at that institution.

If a course is part correspondence and part residential training, the course is considered to be a correspondence course.

(See section 484(l)of the HEA; 34 CFR 600.2)

Telecommunications course

A telecommunications course is a course offered principally through the use of television, audio, or computer transmission, including open broadcast, closed circuit, cable, microwave, satellite, audio conferencing, computer conferencing, video cassettes or discs.

The term "telecommunications" does not include a course that is delivered using video cassettes or disc recordings unless the institution also delivers comparable instruction offered on the cassettes or discs to students physically attending classes at the institution during the same award year. If the course offered in the manner described above does not qualify as a telecommunica-tions course it is considered to be a correspondence course.

(See section 484(l) of the HEA; 34 CFR 600.2)

Educational Program

An educational program is a legally authorized postsecondary program of organized instruction or study that leads to an academic, professional, or vocational degree, or certificate, or other recognized educational credential. However, an institution is not considered to be providing an educational program if the institution does not provide instruc-tion itself (including a course of independent study), but merely gives credit for one or more of the following: instruction provided by other institutions or schools; examinations provided by agencies or organizations; or other accomplishments such as life experience.

(See 34 CFR 600.2)

II. Institutional Eligibility

In general, an institution does not qualify as eligible to participate in the Title IV, HEA Programs if, for the latest complete award year, more than 50 percent of the institution’s courses were correspondence courses, or if 50 percent or more of the institution’s regular enrolled students were enrolled in correspondence courses. For purposes of this provision a telecommunications course is considered to be a correspondence course if the sum of telecommunications and correspondence courses the institution provided during its latest complete award year equaled or exceeded 50 percent of the total number of courses it provided during that year.

These restrictions do not apply to an institution that qualifies as a technical institute or vocational school used exclusively or principally for the provision of vocational education to individuals who have completed or left high school and who are available for study in preparation for entering the labor market under section 521(4)(C) of the Carl D. Perkins Vocational and Applied Technology Education Act;

Calculating the number of courses. For purposes of this calculation-


A correspondence course may be a complete educational program offered by correspondence, or one course provided by correspondence in an on-campus (residential) educational program;

A course must be considered as being offered once during an award year regardless of the number of times it is offered during that year; and

A course that is offered both on campus and by correspondence must be considered two courses for the purpose of determining the total number of courses the institution provided during an award year.

(See section 481 (a)(3)(A)and(B) of the HEA; 34 CFR 600.7)

III. Student Eligibility

A student is not eligible to receive Title IV, HEA Program funds for a correspondence course unless such course is part of a program leading to an associate, bachelor’s, graduate, or professional degree. This means no student enrolled in certificate programs or other short term programs offered through correspondence is eligible to receive Title IV, HEA Program funds.

For the purposes of the above provision, a student enrolled in a telecommunications course is considered enrolled in a correspondence course unless the total number of telecommunication and correspondence courses the institution provides is fewer than 50 percent of the courses the institution provides during an award year and the student is enrolled in a program that leads to an associate, bachelor's, graduate, or professional degree. (In making this determination, the institution must use its latest complete award year, and shall calculate the number of courses using the provisions contained in section II above.)

In order to be eligible for Title IV, HEA Program funds a student enrolled solely in a program of study by correspondence must be carrying a work load of at least 12 hours of work per week, or must be earning at least 6 credit hours per semester, trimester, or quarter. A student enrolled solely in correspondence study cannot be considered more than a half-time student.

(See section 484(k) of the HEA; 34 CFR 668.38 and 690.2)

IV. Cost of Attendance

For a student engaged in a program of study by correspondence, generally the only costs that can be included in the student’s cost of attendance are tuition and fees and, if required, books and supplies. Travel and room and board costs can only be included if they are incurred specifically in fulfilling a required period of residential training.

Generally, a student who is studying via telecommunications does not have any restrictions placed on his or her cost of attendance unless the financial aid officer determines (using his or her professional judgement) that telecommunications instruction results in a substantially reduced cost of attendance.

The cost of equipment, such as a computer, can be included in the cost of attendance of a student studying by correspondence or telecommunications if such equipment is required of all students in the same program.

(See section 472(5) and 472 ( of the HEA)

V. Federal Pell Grant Program and Federal Supplemental Educational Opportunity
Grant (FSEOG) Program Disbursements


Generally, Federal Pell Grant Program and FSEOG Program disbursements can be made up to 10 days before the first day of classes for a payment period (see See 34 CFR 168.164(f).) However, there are special rules for students enrolled in correspondendce study programs as discussed below.

A. FSEOG Program

A correspondence student shall submit his or her first completed lesson before receiving an FSEOG payment.

(See 34 CFR 676.16(f))


B. Pell Grant Program

For a non-term-based correspondence portion of a program of study the institution shall make--

the first payment to a student for an academic year after the student submits 25 percent of the lessons, or otherwise completes 25 percent of the work scheduled for the program or the academic year, whichever occurs last; and the second payment after the student submits 75 percent of the lessons, or otherwise completes 75 percent of the work scheduled for the program or the academic year, whichever occurs last.

For a term-based correspondence portion of a program of study the institution shall make the payment to a student for a payment period after the student completes 50% of the lessons, or otherwise completes 50% of the work scheduled for the term, whichever occurs last.

(See 34 CFR 690.66)