No. 30165 (Amendment): R765-607. Utah Higher Education Tuition Assistance Program

DAR File No.: 30165
Filed: 07/02/2007, 01:00
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

To comply with a statutory change passed by H.B 195 in the 2007 Utah State Legislative session, the Utah Higher Education Tuition Assistance Program (UTAP) is converted from matching endowment grants to need-based grants. This change will retain the original intent and benefit the same needy students and allow institutions to provide the allocated funds to more students each year besides freeing up the matching funds for other needs. This change helps needy students immediately. (DAR NOTE: H.B. 195 (2007) is found at Chapter 247, Laws of Utah 2007, and was effective 04/30/2007.)

Summary of the rule or change:

Created in 1998 by the Utah State Legislature, UTAP's original purpose was to establish a matching grant program to provide incentive for Utah community colleges and centers of Utah State University to raise money for scholarships. Funds were only to be used for matching grants for scholarship endowments. Only a small portion of allocated funds was used because of the endowment aspect so the Utah Legislature changed the entire fund to one of need-based grants, thus allowing schools the opportunity to utilize all funds for student use instead of establishing an endowment fund wherein only the interest could be used for needy students.

State statutory or constitutional authorization for this rule:

Title 53B, Chapter 7, Part 5; and Sections 53B-8-102 and 53B-8-106

Anticipated cost or savings to:

the state budget:

There are no anticipated costs that affect the state budget. The UTAP allocation has not increased. This rule change only affects the nature and awarding of funds allocated for community colleges and centers of Utah State University.

local governments:

There are no costs nor savings to local governments. Local governments are not and will not be affected by the proposed changes to this rule. This rule only applies to institutions of higher education and students.

other persons:

There are no anticipated costs nor savings to small businesses or individuals as a result of this rule change. It will provide greater access to grant funds for needy students at participating community colleges and centers of Utah State University. So, rather than savings, this rule change will allow more students to receive and benefit from financial aid for higher education.

Compliance costs for affected persons:

There are no anticipated compliance costs that will adversely affect institutions of higher education. Associated costs, if any, would be offset by savings, if any, by awarding funds each year to needy students as opposed to establishing and maintaining an endowment fund in order to award a scholarship/grant as required under the current rule.

Comments by the department head on the fiscal impact the rule may have on businesses:

No businesses are currently impacted fiscally by this rule and none will be impacted by this proposed rule amendment. David A. Feitz, Executive Director UHEAA

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Regents (Board Of)
Administration
BOARD OF REGENTS BUILDING, THE GATEWAY
60 SOUTH 400 WEST
SALT LAKE CITY UT 84101-1284

Direct questions regarding this rule to:

Ronell Crossley at the above address, by phone at 801-321-7291, by FAX at 801-321-7299, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

08/14/2007

This rule may become effective on:

08/21/2007

Authorized by:

David A Feitz, Executive Director, UHEAA

RULE TEXT

R765. Regents (Board of), Administration.

R765-607. Utah Higher Education Tuition Assistance Program.

R765-607-1. Purpose.

To provide Utah Higher Education Assistance Authority ("UHEAA") policy and procedures for implementing the Utah Higher Education Tuition Assistance Program("UTAP," or "program")[, UCA Title 53B, Chapter 7, Part 5, enacted in H.B. 135 by the 1998 General Session of the Utah Legislature].

 

R765-607-2. References.

2.1. Utah Code. Title 53B, Utah System of Higher Education, Chapter 7, Part 5 (Utah Higher Education Tuition Assistance Program).

2.2. State Board of Regents Policy R6[10]01, Board of Directors of the Utah Higher Education Assistance Authority.

2.3. Utah Code Title 53B, Chapter 8-102, Definition of Resident Student.

2.4. Utah Code Title 53B, Chapter 8-106, Resident Tuition - Requirements - Rules.

2.5. State Board of Regents Policy R512, Determination of Resident Status.

 

R765-607-3. Effective Date.

These policies and procedures are effective [January 4, 1999]June 21, 2007.

 

R765-607-4. Policy.

4.1. Program Description - UTAP is a [matching]need-based grant program to provide [incentives for Utah System of Higher Education community colleges and Utah State University to raise money for scholarships]need-based grants at the community colleges and at centers of the Utah State University. [In UCA 53B-7-501, the Legislature]The Program recognizes "that tuition and general fee costs to students at Utah community colleges and established branch campuses and centers represent significant challenges for many of the students they serve"[, and that additional scholarship moneys for financially needy students attending those institutions is needed to ensure financial access to higher education]. Program funds may be used only for [matching]need-based grants [for scholarship endowments ]to students attending higher education institutions as provided herein.

4.2. Program Administration - The Board of Regents has delegated to the UHEAA Board of Directors the authority [for]to govern UTAP on behalf of the Board of Regents. The program is administered by the Associate Commissioner for Student Financial Aid as Executive Director of UHEAA, reporting to the Commissioner of Higher Education.

4.3. Institutions Eligible to Participate - Eligible institutions include Snow College, Dixie State College, the College of Eastern Utah, Utah Valley State College, Salt Lake Community College, and Utah State University on behalf of its off-campus centers.

4.4. Students Eligible to Receive UTAP [Scholarships]Grants - To be eligible to receive a [scholarship]need-based grant funded by [an institutional endowment fund established under ]UTAP, a student must:

4.4.1. Be a resident student of the State Of Utah under Utah Code Section 53B-8-1-2 and Board Policy R512 or exempt from paying the nonresident portion of total tuition under Utah Code Section 53B-8-106. For purposes of this section, in addition to the qualification methods set forth in Policy R512, an institution may recognize a student, other than a nonimmigrant alien, as a resident student of the State of Utah if the student graduated from a Utah high school within 12 months of enrolling in the institution.

4.4.[1]2. Be unconditionally admitted and currently enrolled in a degree, diploma, or certificate program at the community college entity (specific campus or extension of the specific campus) for which the [scholarship endowment]UTAP grant fund is established, or at a branch campus or center of Utah State University for receipt of a [scholarship]grant from the University's UTAP [endowment]grant fund.

4.4.[2]3. Be in the first term of the student's enrollment at the institution or be maintaining satisfactory progress, as defined by the institution, toward the degree, diploma, or certificate objective in which enrolled.

4.4.[3]4. Meet all requirements of general eligibility for Federal Higher Education Act Part IV Student Financial Aid Programs, as defined in applicable U. S. Department of Education Regulations and the current edition of the Department of Education Student Aid Handbook.

4.4.[4]5. Have a demonstrated need for financial assistance based on the defined Cost of Attendance for the applicable student category at the institution and the expected family contribution as determined by the Federal need analysis process for Higher Education Act Title IV student financial assistance programs.

4.5. Initial Allocation of Appropriated Funds - Money appropriated to the program for a specific fiscal year, plus any remaining balance at the end of the preceding fiscal year, shall be allocated to eligible institutions as follows:

4.5.1. Fifty percent of the amount available for allocation each fiscal year shall be allocated in equal proportions to:

4.5.1.1. Snow College, for its main campus and extensions;

4.5.1.2. Dixie State College, for its main campus and extensions;

4.5.1.3. College of Eastern Utah, for its main campus and extensions of the main campus;

4.5.1.4. College of Eastern Utah, for its San Juan Campus and extensions of the San Juan Campus;

4.5.1.5. Utah Valley State College, for its main campus and extensions;

4.5.1.6. Salt Lake Community College, for its Taylorsville Campus and extensions of the Taylorsville Campus; and

4.5.1.7. Salt Lake Community College, for its South City Campus and extensions of the South City Campus.

4.5.2. Fifty percent of the amount available for allocation each fiscal year shall be allocated to the Utah State University for its instructional centers at Roosevelt, Blanding, Randolph, Price, Moab, Brigham City, Tooele, Richfield, and Ephraim, and such other centers as UHEAA may determine.

4.5.3. Individual Award Limits -- The total amount of any UTAP grant award to an eligible student in an award year will not exceed $2,500, and the minimum UTAP grant award to an eligible student will be $250, except that:

4.5.3.1. The minimum amount may be the amount of funds remaining in the institution's allotment for the award year in the case of the last eligible student receiving a UTAP grant award for the year; and

4.5.3.2. An eligible student whose period of enrollment is less than the normally-expected period of enrollment within the award year (such as two semesters, three quarters, nine months, or 900 clock hours) will be awarded a minimum or maximum amount in proportion to the portion of the normally-expected period of enrollment represented by the quarter(s), semester(s), or other defined term for which the student is enrolled.

[4.6. Submission of Proposals - For each of the individual entities listed in section 4.5, the institution may submit to UHEAA proposals for one-to-one matching grants from the funds allocated pursuant to section 4.5.

4.6.1. An institution may submit a proposal only when it has raised, from nonappropriated sources other than federal funds or reimbursed overhead funds, the one-to-one match for the amount of program moneys requested in the proposal.

4.6.2. The proposal shall include the following information, certifications, and stipulations:

4.6.2.1. The amount of the UTAP matching grant requested, and a certification that the institutional matching amount is available and has been raised from nonappropriated sources other than federal funds or reimbursed overhead funds;

4.6.2.2. A statement that if the requested program grant is approved, the institution will establish a specific restricted institutional endowment fund, separate and distinct from any foundation funds, for scholarships for students who meet the requirements enumerated in section 4.4.

4.6.2.3. A statement that money in the specified endowment fund shall be invested in compliance with rules of the State Money Management Council applicable to gift funds.

4.6.2.4. A statement that principal of the specified endowment fund will not be expended and that up to 50% of the money earned on principal in the endowment fund in a fiscal year may, at the institution's option, be retained and added to principal, but at least 50% of the money earned on principal in the endowment fund in a fiscal year will be used for scholarships for qualifying students with demonstrated financial need in the following fiscal year.

4.6.2.5. A statement that the institution agrees to maintain appropriate financial records, and records regarding the determination of scholarship awards to qualifying students, verifying its compliance with the terms stated in its proposal, and to make such records available upon request for review by UHEAA or State Board of Regents officers or auditors for a period of five years after the applicable transaction dates.]4.6. Institution Participation Agreement -- Participating institutions shall provide a statement that the institution agrees to maintain appropriate financial records, and records regarding the determination of grant awards to qualifying students, and to make such records available upon request for review by UHEAA or State Board of Regents officers or auditors for a period of three years after the applicable transaction dates.

4.6.1. Program Rosters -- Each eligible institution shall, at the conclusion of the awarding cycle, no later than 30 days after the end of the fiscal year, provide UHEAA with a roster of the eligible students who received funds.

4.7. Three Years [Reservation of]to Use Allocations [and Reallocation of Allocations Not Used After Three Fiscal Years - Money allocated for a specific eligible entity in a]-- An eligible institution which receives funds in a fiscal year shall [remain in reserve for proposals for the specific eligible entity for]have that fiscal year and the two following fiscal years[, and any money reserved for which the institution does not submit an eligible proposal] to award the funds to eligible students. If, by the end of the three-year period, the funds from the first fiscal year have not been awarded to eligible students, the funds shall be returned to the pool of program money available for allocation for the following fiscal year.

4.8. Investment of Program Funds - Funds appropriated for the program shall be invested by UHEAA with the State Treasurer's Public Treasurer Investment Fund, and interest earned prior to disbursement for qualifying proposals shall be retained in the program fund and added to the pool available for allocation in the following fiscal year.

4.9. Disbursement of Funds [for Qualifying Proposals ]-[ When a qualifying proposal is received pursuant to section 4.6,] UHEAA shall promptly disburse the [matching grant]allocated funds to the institution as soon after July 1 of each Fiscal Year as the funds become available for disbursement.

 

KEY: financial aid, higher education

Date of Enactment or Last Substantive Amendment: [January 4, 1999]August 7, 2007

Notice of Continuation: July 3, 2003

Authorizing, and Implemented or Interpreted Law: 53B-7-501; 53B-7-502