USA Funds University Explains Consumer-Information Requirements

Each year schools participating in Title-IV programs are required to disclose specific information and reports to current and prospective students and staff, the U.S. Department of Education and the public. Schools must directly distribute the procedures for obtaining this consumer information.

Among the types of consumer information that schools must disclose is basic financial-aid information. Schools must publish financial-aid information and make it readily available to both current and prospective students. USA Funds^® University notes that the financial-aid information should include facts about the following topics:

• Need-based and non-need-based federal financial-aid programs.
• Need-based and non-need-based state-, local-, institutional- and other private-aid programs.
• The application process and an explanation of federal methodology.
• The school’s awarding processes.
• How and when financial aid will be disbursed.
• General conditions and terms of employment included in financial-aid packages.
• Satisfactory-academic-progress standards and criteria for reestablishing eligibility, as well as information about satisfactory-academic-progress appeals.

Additionally, schools must include information regarding the rights and responsibilities of students receiving federal student aid. One example of meeting this requirement is loan counseling for Stafford-loan borrowers. Federal regulations require that, before a first-time borrower receives an initial student-loan disbursement, the school must provide the student with information about the student’s rights and responsibilities as an education-loan borrower. Among the topics that must be included in this counseling are the following:

• Information regarding the Master Promissory Note and its use.
• Consequences for not following through on borrower responsibilities.
• Sample repayment schedules.
• Other terms and conditions.

Prior to graduating or ceasing at least half-time enrollment, the federal government requires that students complete loan exit counseling. The following are some topics that loan exit counseling must include:

• A review of entrance-counseling requirements.
• An estimate of students’ monthly payments.
• Students’ repayment options.
• Deferment, forbearance and discharge information.
• Borrower rights and responsibilities.
• Importance of maintaining contact with lenders and servicers.

An overview of the all types of information that schools are required to disclose to consumers is among the topics of the USA Funds Spring-2007 Financial-Aid Workshops, scheduled for 64 locations nationwide. For more information and to register, visit the USA Funds University online learning page. The USA Funds site also provides information about other USA Funds University training opportunities.