Have you reviewed and updated your school’s financial aid policies and procedures manual this year? Given the significant updates to FAFSA regulations taking effect in July, it is more important than ever to review your operating manuals to ensure you are up to date with the changes in the language, nomenclature, and policies surrounding the processing and managing of all federal financial aid funds.
Some of the key changes that go into effect in July of this year include the Gainful Employment (GE) and Financial Value Transparency (FVT) reporting requirements, the updated limit to the length of Gainful Employment programs being capped at 100% of a state’s minimum required clock or credit hours (down from 150%), the limit on transcript withholding due to credit balances from a student’s file, updated requirements related to financial aid counseling and communications, including a breakdown of a student’s direct and indirect costs based on their specific enrollment status, and the need to provide adequate career service options to maintain Title IV eligibility. Remaining up to date on these and other evolving laws and regulations by reviewing and updating your policy and procedure manuals is, therefore, now more important than ever.
With numerous demands on the time of financial aid administrators, it’s tempting to postpone updating your policies and procedures manual. However, federal regulations require institutions to have comprehensive written policies and procedures. An up-to-date manual serves as a critical resource for your financial aid staff and a valuable training tool for new department members. By ensuring your manuals are current, you save time otherwise spent repeatedly answering questions that could be easily addressed through this repository resource.
Moreover, maintaining a systematic and consistent administration of financial aid minimizes errors and enhances compliance. In our work with colleges, the most common compliance issues include repeat violations, inadequate reporting, erroneous authorizations, and faults with student counseling. A well-maintained manual ensures all financial aid staff adhere to consistent procedures, thereby improving compliance.
Regular updates to your policies and procedures can help your team understand and remain up-to-date on regulatory changes to operations. Identifying opportunities to streamline procedures, optimize staffing, leverage technology, and improve interactions with students and families becomes easier with an up-to-date manual. Additionally, it is worth noting that an updated manual simplifies future audits and program reviews, ensuring your financial aid office operates smoothly and efficiently even through these moments of heightened scrutiny.
If you are looking for help assessing and updating your policies and procedures, look no further. Our team of seasoned financial aid consultants can provide an objective assessment of your office operations, policies, and procedures. Our compliance experts stay current with regulatory changes, technological advancements, and trends in student services. We can assist your financial aid office in updating your policies and procedures manual and offer targeted training programs as needed. For more information, contact us at info@heag.us to speak with a member of our compliance team.