Judgment of Compliance

Narrative

Sam Houston State University (SHSU) is in compliance with the program responsibilities required under Title IV of the 1998 Higher Education Amendments. SHSU has received Formal Approval to Participate in Federal Student Financial Aid Programs [1]. This approval was received August 14, 2007 and is effective through March 31, 2013. Sam Houston State University has also received its Eligibility and Certification Approval Report [2] and Program Participation Agreement [3].

The Office of Student Financial Aid submits federally mandated Fiscal Operations Report and Application to Participate reports (FISAP) annually to the U.S. Department of Education (DOE) detailing Title IV expenditures [4] [5] [6]. FISAPs are used by the DOE when determining initial annual program funding for the institution. For each award year, the University receives e-Campus-Based Statement of Accounts funding authorization from the DOE [7] [8] [9] [10]. In accordance with these statements, authorized federal funds for these programs were withdrawn from SHSU’s grantee account. SHSU Contracts and Grants Department prepares the draw-down request in the G5 system, and the funds are then received electronically [11]. The G5 application replaced the Grant Administration and Payment System (GAPS) in 2007. There have been no limitations, suspensions or terminations placed on the University by the DOE. There are no situations of reimbursement or exception status relating to Title IV funding.

Financial aid programs are regularly audited as required by federal and state regulations. The State Auditor’s Office is responsible for conducting annual financial aid and federal audits of state agencies and higher education institutions. As part of the State of Texas Federal Portion of the Statewide Single Audit [12], an audit was performed for the year ended August 31, 2006. This audit was conducted in accordance with the Office of Management and Budget (OMB) Circular A-133 [13] as required by federal law. The report resulting from the audit was dated March 07, 2007 and no findings were reported for SHSU [14]. The cohort default rates for fiscal years 2003, 2004 and 2005 were 5.0, 5.3 and 4.1, respectively [15].

The Federal Student Aid Handbooks [16] [17] are used in combination with the Code of Federal Regulations [18] to administer Title IV financial aid. The Handbooks are on-line references available through the Information for Financial Aid Professionals (IFAP) Library on the DOE website. The Office of Student Financial Aid maintains a procedures manual [19] for office personnel to use as a training tool and daily routine reference.

SHSU offers the following Title IV programs: a) Pell Grant, b) Supplemental Educational Opportunity Grant, c) Work Study, d) Perkins Loans, e) Stafford Loans (subsidized and unsubsidized), f) Parent Loan for Undergraduate Students, g) Academic Competitiveness Grant, h) SMART Grant, and i) Graduate PLUS Loan. The Office of Student Financial Aid provides information to students and parents regarding financial aid programs, the application process, including a web link to the Free Application for Federal Student Aid (FAFSA), cost of attendance, academic requirements and the effect of withdrawal on disbursed funds [20]. The Office of Student Financial Aid monitors the cumulative grade point averages and the course completion rates of students awarded financial aid, in accordance with the satisfactory academic progress (SAP) policies for undergraduate and graduate students [21] [22]. Students who fail to meet academic eligibility requirements may receive aid during a financial aid grace period. However, continued performance below the minimum SAP standards results in financial aid suspension. The SAP policies detail the process through which students may appeal financial aid suspension. Students may regain academic eligibility by increasing academic performance sufficient to meet the SAP requirements. The aid office monitors student enrollment withdrawals from the University, in accordance with the Return of Title IV (R2T4) Funds Policy [23]. The R2T4 calculation is performed for each withdrawn financial aid recipient, and unused funds are returned to the appropriate programs.

Supporting Documentation