No. 42860 (Amendment): Rule R765-611. Veterans Tuition Gap Program

(Amendment)

DAR File No.: 42860
Filed: 04/30/2018 02:53:48 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

These amendments are necessary to incorporate changes to the Veterans Tuition Gap Program (VeT Gap) enacted by S.B. 35 in the 2017 General Session, Session Law 143.

Summary of the rule or change:

S.B. 35 (2017) permits the VeT Gap Program to be available for any veteran as defined by Section 68-3-12.5, not just those identified as Chapter 33 - Post 9/11 veterans for the Veterans Administration educational benefit program, and who is a Utah resident. VeT Gap funds may also be available for students who may not have had any eligibility for federal educational benefits. Furthermore, S.B. 35 (2017) limits program funds to be utilized at public or a private, nonprofit, postsecondary institution located in Utah that is accredited by a recognized accrediting organization recognized by the United States Department of Education.

Statutory or constitutional authorization for this rule:

• Title 53B, Chapter 13b
• Section 68-3-12.5

Anticipated cost or savings to:

the state budget:

The state budget sets an annual funding level of $125,000 for this program. These rule changes do not require adjustments to the state budget, nor is there anticipated savings or additional costs to the state budget.

local governments:

There are no associated costs nor savings to local governments due to these proposed changes.

small businesses:

There are no costs nor savings to any small businesses as a result of these proposed changes.

persons other than small businesses, businesses, or local governmental entities:

There are no anticipated costs to any individual as a result of these rule changes. These changes do enlarge the potential pool of individuals who may benefit from the Veterans Tuition Gap Program as this change opens the program to all veterans regardless of the specific Veterans Administration educational benefit program for which they may qualify. Therefore, a potential savings in the form of tuition assistance may apply to qualifying veterans.

Compliance costs for affected persons:

There are no compliance costs for any individual.

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

There are no comments from the department head on the fiscal aspect this rule may have on businesses since this program is limited to tuition assistance for students attending a private nonprofit or public institutions.

Dave Buhler, Commissioner of Higher Education

The full text of this rule may be inspected, during regular business hours, at the Office 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:

06/14/2018

This rule may become effective on:

06/21/2018

Authorized by:

Dave Buhler, Commissioner of Higher Education

RULE TEXT

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs

FY 2018

FY 2019

FY 2020

State Government

$0

$0

$0

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Persons

$0

$0

$0

Total Fiscal Costs:

$0

$0

$0

Fiscal Benefits

State Government

$0

$0

$0

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Persons

$0

$0

$0

Total Fiscal Benefits:

$0

$0

$0

Net Fiscal Benefits:

$0

$0

$0

 

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described above. Inestimable impacts for Non - Small Businesses are described below.

 

Appendix 2. Regulatory Impact to Non - Small Businesses

These rule changes may increase the number of applicants for assistance to pay tuition charges at eleven eligible institutions of higher education (NAICS 6113). The number of such applicants is inestimable for any given year. Any increase in the number of applicants may create additional workloads for one or more employees of institutions but the impact of such work is inestimable due to future unknown demand for VeT Gap funds by veterans who may qualify for assistance.

 

The head of the Office of the Commissioner of Higher Education has reviewed and approved this fiscal analysis.

 

 

R765. Regents (Board of), Administration.

R765-611. Veterans Tuition Gap Program.

R765-611-1. Purpose.

To provide Board of Regents ("the Board") policy and procedures for implementing the Veterans Tuition Gap Program, Utah Code Title 53B, Chapter 13b, enacted in S.B. 16 by the 2014 General Session of the Utah Legislature and amended by S.B. 35 of the 2017 General Session of the Utah Legislature.

 

R765-611-2. References.

2.1. [Post 9/11 Veterans Educational Assistance Act of 2008, Pub. L. No. 110-252.]Utah Code Section 68-3-12.5 (Definition of Veteran)

2.2. Utah Code Section 53B-8-106 (Resident tuition - Requirements - Rules)

2.3. Utah Code Section 53B-8-102 (Definition of Resident Student)

2.4. Utah Code Section 53B-13b-101 to 104 (Veterans Tuition Gap Program Act)

2.5. Policy and Procedures R512, Determination of Resident Status

 

R765-611-3. Effective Date.

These policies and procedures are effective July 1, [2014]2017.

 

R765-611-4. Policy.

4.1. Program Description: The Veterans Tuition Gap Program (VeT Gap) is a State supplement grant to provide tuition assistance for veterans [who are recipients of Federal Post-9/11 Veterans Educational Assistance Act (Federal program) benefits ]who are attending institutions of higher education in Utah and whose benefits under the Federal program have been exhausted or are not available. This program is only available to higher education institutions that grant baccalaureate degrees.

4.2. Award Year: The award year for VeT Gap is the twelve-month period coinciding with the State fiscal year beginning July 1 and ending June 30.

4.3. Institutions Eligible to Participate: Eligible institutions include those located within the State of Utah which are accredited by a regional or national accrediting organization recognized by the Board.

4.4. Students Eligible to Participate: To be eligible for assistance from VeT Gap funds, a student must:

4.4.1. be a resident student of the State of Utah under Utah Code Section 53B-8-102 and Board Policy R512 or exempt from paying the nonresident portion of total tuition under Utah Code Section 53B-8-106; and

4.4.2. be a veteran [using the post 9/11 Veterans Assistance Program funds]as defined by Utah Code Section 68-3-12.5; and

4.4.3. be unconditionally admitted and currently enrolled in an eligible program leading to a bachelor's degree at an eligible institution[on at least a half-time basis as defined by the institution]; and

4.4.4. be maintaining satisfactory academic progress, as defined by the institution, toward the degree in which enrolled; and

4.4.5. has exhausted the Federal benefit under [the post 9/11 Veterans Assistance Program]any veterans educational assistance program or such benefits are unavailable; and

4.4.6. has not completed a bachelor's degree; and

4.4.7. be in the final year of his or her academic baccalaureate program.

4.5. Length of Award Period. A qualifying military veteran may receive a program grant until the earlier of the following occurs:

4.5.1. the qualifying military veteran completes the requirements for a bachelor's degree; or

4.5.2. 12 months from the beginning of the initial academic term for which the qualifying military veteran receives an initial program grant.

4.[5]6. Program Administrator: The program administrator for the VeT Gap is the Associate Commissioner for Student Financial Aid, or a person designated in a formal delegation of authority by the Associate Commissioner, under executive direction of the Commissioner of Higher Education.

4.[6]7. Availability of Funds for the Program: Funds available for VeT Gap allocations to institutions may come from specifically earmarked State appropriations, or from other sources such as private contributions. Amounts available for allocations each year shall be allocated as follows:

4.[7]8. Allocation of Program Funds to Institutions

4.[7]8.1. Annually, the participating institution will provide the following required data, for the most recently completed academic year, by March 1st. The director of financial aid of an eligible institution, in consultation with the institution's veterans affairs officer, will demonstrate intention to continue participation in VeT Gap by submitting to the program administrator a certification, subject to audit, of [(a) ]the total number of veterans [using Post 9/11 Veterans Assistance Program funds attending the institution ]who were resident students of the State of Utah under Utah Code Section 53B-8-102 and Board Policy R512 [and (b) the total number of such students ]who have graduated from the institution with a baccalaureate degree in the most recently completed academic year.

4.[7]8.2. Failure to submit the certification required in 4.[7]8.1 by the requested date constitutes an automatic decision by an eligible institution not to participate in the program for the next fiscal year.

4.[7]8.3. Allocation of program funds to participating institutions will be based on the total number of an institution's Utah resident students who are veterans who graduated with a baccalaureate degree in the most recently completed academic year [and used their Post 9/11 Veterans Assistance Program funds in the State of Utah ]and the proportion of each participating institution's number of those students to the total population of such students. For example:

4.[7]8.3.1. A participating institution's number of Utah resident students who are veterans and graduated with a baccalaureate degree during the most recently completed academic year [using Post 9/11 Veterans Assistance Program funds ]/ Total number of Utah resident students who are veterans and graduated from all participating institutions with a baccalaureate degree during the most recently completed academic year [using Post 9/11 Veterans Assistance Program funds ]= % of VeT Gap funds allocated to the participating institution

4.[7]8.4. The program administrator will send official notification of each participating institution's allocation to the director of financial aid each fiscal year.

4.[7]8.5. The program administrator will send a blank copy of the format for the institutional VeT Gap performance report, to be submitted within 30 days of the end of the applicable fiscal year, to the director of financial aid of each participating institution each fiscal year.

4.[8]9. Institutional Participation Agreement: Each participating institution will enter into a written agreement with the program administrator or assigned designee agreeing to abide by the program policies, accept and disburse funds per program rules, provide the required report each year and retain documentation for the program to support the awards and actions taken. By accepting the funds, the participating institution agrees to the following terms and conditions:

4.[8]9.1. Use of Program Funds Received by the Institution

4.[8]9.1.1. The institution may at its discretion place up to, but in no case more than, 3.0% of the total amount of program funds allocated to it for the award year in a budget for student financial aid administrative expenses of the institution.

4.[8]9.1.2. The institution may not carry forward or carry back from one fiscal year to another any of its VeT Gap allocation for a fiscal year. Any unused funds will be returned to the program administrator as directed. Returned funds will be re-distributed to eligible institutions as regular VeT Gap allocations for disbursement the next award year.

4.[8]9.1.3. The institution may establish processes to determine the distribution of funds to students so long as it does so in accordance with provisions established in this policy.

4.[8]9.2. Determination of Awards to Eligible Students

4.[8]9.2.1. Student cost of attendance budgets will be established by the institution, in accordance with [Federal regulations applicable to student financial aid programs under Title IV of the Higher Education Act]20 U.S.C 108711 [as amended](2010), for specific student categories authorized in the Federal regulations, and providing for the total of costs payable to the institution plus other direct educational expenses, transportation and living expenses.

4.[8]9.2.2. The total amount of any VeT Gap funds awarded to an eligible student in an academic year will not exceed the amount of tuition (not fees) for that academic year and may be impacted by the following:

(a) 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 an amount in proportion to the normally-expected period of enrollment represented by the term, or terms, e.g. semester or quarter) for which the student is enrolled; or

(b) The minimum student award amount may be the balance of funds remaining in the institution's allocation for the award year in the case that the previous eligible student receiving a VeT Gap award for the year reduced the total available funds to an amount less than that for which an individual qualified.

4.[8]9.2.3. VeT Gap funds will be awarded and packaged on an annual award year basis unless the remaining period of enrollment until completion of the academic program is less than one award year. Funds will be paid one quarter or semester at a time (or in thirds, if applicable to some other enrollment basis such as total months or total clock hours), contingent upon the student's maintaining satisfactory progress as defined by the institution in published policies or rules.

4.[8]9.2.4. All awards under the program will be made in accordance with [current Federal Title IV]the non-discrimination requirements of 34 C.F.R. Part 100 (2000).

4.[8]9.2.5. Students receiving financial aid under the program will be required to agree in writing to use the funds received for expenses covered in the student's cost of attendance budget.

(a) The student's signature on the Free Application for Federal Student Aid satisfies this requirement.

(b) If the institution determines, after opportunity for a hearing on appeal according to established institutional procedures, that a student used VeT Gap funds for other purposes, the institution will disqualify the student from VeT Gap eligibility beginning with the quarter, semester or other defined enrollment period after the one in which the determination is made.

4.[8]9.2.6. In no case will the institution initially award program funds in amounts which, with Federal Direct, Federal Direct PLUS and/or Perkins Loans and other financial aid from any source, both need and merit-based, and with expected family contributions, exceed the cost of attendance for the student at the institution for the award year.

4.[8]9.2.7. If, after the student's aid has been packaged and awarded, the student later receives other financial assistance (for example, merit or program-based scholarship aid) or the student's cost of attendance budget changes, resulting in a later over-award of more than $300, the institution will appropriately reduce the amount of financial aid disbursed to the student so that the total does not exceed the cost of attendance.

4.[8]9.3. Reports: The institution will submit an annual report within 30 days after completion of the award year, providing information on individual awards and such other program-relevant information as the Board may reasonably require.

4.[8]9.4. Records Retention and Cooperation in Program Reviews: The institution will cooperate with the program administrator in providing records and information requested for any scheduled audits or program reviews, and will maintain records substantiating its compliance with all terms of the participation agreement for three years after the end of the award year, or until a program review has been completed and any exceptions raised in the review have been resolved, whichever occurs first. If at the end of the three-year retention period, an audit or program review exception is pending resolution, the institution will retain records for the award year involved until the exception has been resolved.

 

KEY: financial aid, higher education, veterans benefits

Date of Enactment or Last Substantive Amendment: [February 25, 2015]2018

Authorizing, and Implemented or Interpreted Law: 53B-13b; 53B-8-102; 53B-8-106; Pub. L. No. 110-252

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