Title IV Administrative Responsibility
Who is responsible for administering Title IV programs correctly even if incorrect action or advice was provided?
The institution is ultimately responsible for administering Title IV programs correctly even if incorrect advise was given. That is why it is important for the FAO to fully understand the regulations and view them as a positive force versus a road block.FAOs with strong knowledge and understanding will be able to assist the institution and help reach its goals and objectives while still remaining complaint at all times.
The Financial Aid Officer is still responsible for proper administration of Title IV programs in compliance with law and regulation regardless of the annual handbook or informal advice from the Department of Education.
Kristina,
You are absolutely correct! The FAO should ALWAYS refer to the regulation(s) and use the Handbook and guidance from ED as important but none the less, as secondary information. In my experience I have found that too many FAO's rely too heavily on the Handbook and advice from colleagues to make decisions. This practice is not worth the risk!
Cindy Kohlman
Monique ,
Again, I apologize for the lateness of my response.
Great post! I wish more people would view regulations the way you do. Rules and regulations do not have to be a deterrent in all cases. Another student suggested looking for someone who can "think outside of the box" which is exactly what you have stated above. The more financial aid experience the FAO possesses, and the more they understand their institution, the greater likelihood they will determine a creative, compliant solution.
Cindy Kohlman
The school is always held responsible for the correct implementation of the Title IV programs - period. This is why it's extremely important to fully understand the regulation and keep apprised of any and all changes that may come along. We are a small school and utilize a 3rd party network for processing our Federal Student Aid applications. But in the event of an audit, it is still the school that will be held accountable.
Linda,
Great points and please keep in mind that there are so many other aspects to compliance other than just the file processing. The FSA Assessments on the IFAP.ed.gov website are extremely helpful and can be used effectively to test other pertinent areas regulated for Title IV Administration.
Cindy Kohlman
The school is ultimately responsible. If top management of the school isn’t behind following the laws, then they will ultimately pay the price.
Susan,
The school always has the final responsibility despite proper diligence and counsel. I don't know who said it but I have always lived by the saying that "you can delegate the task but not the responsibility".
Cindy Kohlman
Even of the school was given incorrect information by the DOE, it is still entirely up to the school to make sure they are in compliance.
Allison,
That is exactly why advice from the Department should only be used as guidance. It is always best to simply refer to the actual regulation(s) when developing polices and procedures.
Cindy Kohlman
The institution is initially responsible for administering Title IV programs correctly even if incorrect information was given by the DOE. It's important for the FAO to fully understand the regulation, keep current of any and all changes, so the school maintains in compliance.
Mayra,
Yes, Directors and others in the office MUST keep up with the literature which outlines changes and details about law and regulation. It also helps greatly if a Director can maintain a network of associates that can help each other to keep current and discuss issues to find focus and clarity.
Warren Hoffman
I completely agree with you, the entire school must know and be in compliance with all the regulations
The school, but the Director of Financial Aid and his/her staff are responsible for the administration of the T4 programs at the school.
Daisy,
That is correct. The entire school is responsible for the administration of Title IV programs. Consider taking FA231 which deals with areas other than financial aid that have a role in overall compliance.
Warren Hoffman
I will consider it, however I have been working in financial aid for 27 years, which 24 have been as DOF, so I think that by now I already know each school department role. Nevertheless since regulations are constantly changing I agree with you that all of us working in FA need training in all the areas, not only T4.
Daisy,
No pressure to take a course, just thought it might be a good, solid review.
Warren Hoffman
It is the school's responsibility to administer Title IV funds within the law even if poor advice is advised by the DOE or a third party servicer. The Financial Aid Director must have good knowledge of the law, guidance and know where to access the information when needed.
Janet,
Well said! Directors cannot assume that others know the regulations well enough and must keep lines of communication open to make sure that things get done correctly and timely.
Warren Hoffman
