Postsecondary Child Care Grant Training

1. Postsecondary Child Care Grant Training Presented by Brenda Larter Office of Higher Education June 9, 2010

2. Program Purpose • To provide financial assistance to students with financial need pursuing a postsecondary education who require child care assistance for their dependent children and do not receive funds from the Minnesota Family Investment Program (MFIP)

3. Eligibility Requirements

4. Eligible Institutions • Minnesota public postsecondary institutions • Minnesota private baccalaureate degree granting college or university (non-profit or for-profit) • Minnesota non-profit two-year vocational school granting associate degrees • School must sign Institutional Participation Agreement with Office of Higher Education (OHE) • School must also submit annual Program Participation Form, which indicates anticipated funding needs for the coming year

5. Eligible Student • Must be a U.S. citizen, permanent resident or eligible non-citizen (same criteria used for federal aid programs) • Must be a Minnesota resident, using the same residency criteria in place for Minnesota State Grant Program. (The definition of Minnesota resident used for State financial aid programs was expanded to include ‘a spouse or dependent of a veteran, if the veteran is a Minnesota resident.’ This means the veteran would have to meet the state residency definition.)

6. Eligible Student • Must be enrolled for 6 or more credits for the term (12 or more hours per week at a clock hour school) • Must be enrolled in an undergraduate program leading to a degree, certificate, or diploma • A student can receive a Postsecondary Child Care Grant at more than one eligible institution as long as the student is enrolled in a program leading to credential at one eligible institution • The student must not have already earned a baccalaureate degree

7. Eligible Student • The student must not have attended the equivalent of four full-time years of postsecondary education • The institution is responsible for reviewing transcripts • One extra term of eligibility for students who had to withdraw for active military service after December 31, 2002

8. Eligible Student • The student must be enrolled in a non-sectarian program or course of study • A “non-sectarian program” means a program of study that is not specifically designed to prepare students to become ministers of religion, to enter some other religious vocation, or to prepare them to teach theological subjects. (Full definition in program manual.)

9. Eligible Student • Must be making Satisfactory Academic Progress. - The state definition was changed so it matches the definition used for federal financial aid programs which requires a 2.0 GPA or academic standing consistent with graduation requirements. (Same criteria used for other state financial aid programs) • The student must not be receiving tuition reciprocity benefits from a neighboring state to attend a MN institution

10. Eligible Student • The student must have a child 12 years of age or younger, or 14 years of age or younger who is handicapped as defined in Minnesota Statute section 125A.02, and who is or will be receiving care on a regular basis from a licensed or legal non-licensed care giver • The child must meet the requirements for inclusion in the independent student’s household size or dependent student's parental household size, as specified in applicable Title IV program regulations • Foster children not eligible

11. Eligible Student • The student must NOT be receiving benefits from the Minnesota Family Investment Program (MFIP) • This applies even if MFIP child care assistance does not cover school hours • A student can get a pro-rated Postsecondary Child Care Grant if the student only received MFIP benefits for a portion of the term

12. Eligible Student • If the student is excluded from receiving MFIP benefits (normally due to a penalty), but the student’s children receive MFIP benefits, the studentISeligible for the Postsecondary Child Care Grant • The school must collect documentation from the county verifying the student is excluded from receiving MFIP benefits • Students who are NOT on MFIP, but receive other benefits such as General Assistance, MN Care Insurance, Medical Assistance, Food Stamps, or Diversionary Work Program (DWP) AREeligible for the Postsecondary Child Care Grant

13. Eligible Student - Students under DWP are eligible for child care assistance through the DWP, so those benefits would be subtracted from actual child care costs used in the Postsecondary Child Care Grant award calculation - The DWP is a program families are referred to for four months prior to going on MFIP.

14. Eligible Student • The student cannot be in default on any student loan • The student can regain eligibility retroactive to the beginning of the current aid year by producing documentation from the holder of the loan that it has been paid in full or otherwise satisfied • The student must report any changes to data reported on the Postsecondary Child Care Grant application within 10 days of the change taking place • Such reported changes must be date stamped by the financial aid office

15. Eligible Provider • A licensed child care provider; or • A “legal non-licensed care giver,” meaning a person who is at least 18 years old and: • is related to the student; OR • takes care of the child(ren) from only one family other than his/her own • After school program affiliated with school district • A parent or legal guardian of the student’s child doesNOT qualify as an eligible provider

16. Eligible Provider • There is no requirement that the provider be located in Minnesota • The following persons areNOT eligible child care providers: • Parents, step-parents, legal guardians of child • Other relatives if they live with and care for the child when the child's parents do not reside in the same home

17. Application Process

18. Application Form • A student must complete Section A and sign the Student Certification Section of the Postsecondary Child Care Grant Program Application (Appendix 2 and 2a of manual) • By signing Student Certification, student agrees to: • Report any changes in application data to school • Use Child Care Grant to pay child care expenses • Let school and/or OHE contact provider for verification • Let information be shared between school, OHE and county child care assistance programs

19. Application Form • Parents or legal guardian of child not available to care for child • Provide truthful information • May be required to return all or a portion of award for withdrawals

20. Application Form • Child care provider must complete Section B and sign the Provider Certification Statement on the program application • Section B documents number of children receiving child care, cost for each child, child care assistance from other sources (this is also reported by the student), as well as contact information for the provider • By signing Provider Section, provider certifies that information is correct and agrees to report any changes to the college financial aid administrator

21. Application Form • Date stamp with date received • Application must be complete prior to awarding the student • Verify household size and total income on the application, must match what is listed on FAFSA and are consistent across financial aid programs • Resolve any conflicting information between the application and any other forms or documentation in the student’s file

22. Application Form • The school must keep a copy of the application form in the student’s financial aid file • An institution may maintain electronic records for the fiscal year file instead of paper copies, so long as the records are available to auditors

23. Application Deadlines • School must establish a deadline date by which applications for initial and renewal awards must be received for the initial prioritization of applications • When prioritizing applications received by initial deadline date, the school must first award all renewal applicants prior to awarding first time applicants

24. Application Deadlines • A “renewal” applicant is a student who: • received an award in the immediately preceding academic year; and • has had continuing enrollment at the institution since the time the previous year’s award was given • “Continuing enrollment” means that a student has not had an interruption in enrollment at the current institution for more than one academic term or 60 days in the preceding academic year, whichever is longer • 2007 higher education bill contained language excusing enrollment interruption for those who left for active duty military service

25. Renewal Applicant • A student may miss one academic term and summer term and not lose continuing enrollment status • If funds don’t cover all renewal applicants meeting initial application deadline, school must prioritize these applications according to its written policy

26. Application Deadlines • After all renewal applicants who met the initial application deadline have been awarded, the school may then award first time applicants who met the initial application deadline • If funds don’t cover all first time applicants who meet initial application deadline, school must prioritize these applications according to its written policy

27. Application Deadlines • After all applicants (renewal and first-time) meeting the initial application deadline have been awarded, school may then award students whose applications were received after the initial application deadline • Prioritization of applications received after the initial deadline date is based on the school’s written policy • There is no requirement that renewals be given priority over first time applicants • Most schools have prioritized these applications based on the date received

28. Waiting Lists • If funds don’t cover all eligible applicants, school must maintain waiting list • Prioritization of those on waiting list is based on the school’s policy • School must give priority to renewal applicants meeting initial priority deadline • Schools should encourage students to apply and be placed on the waiting list even if no funds are available. • Waiting list data must be reported to OHE on refund/reallocation web reporting form

29. Award Process

30. Award Period • The school must award the student for the full 9-month academic year (fall through spring terms) • Can award for fewer terms if: • Student will only attend partial year • Student will run out of eligibility due to postsecondary attendance • Awarding later in academic year • Option to award retroactively to past terms is optional • Remaining funds won’t cover full year • Awards are recalculated each term based on the student’s enrollment level and actual child care costs

31. Full Year Award • Like State Grant, school can award a student for up to 3 full-time semesters or 4 full-time quarters • The award for the extra term is calculated in the same manner as for any other term • A student could actually get awarded for both summer terms plus fall through spring terms provided: • Both summer terms were crossover terms • The sum of all term awards did not exceed 150% (semester system) or 133% (quarter system) of the annual maximum award for the student’s income and household size

32. Award Calculation Tools • OHE Child Care Grant Award Calculation Spreadsheet • www.ohe.state.mn.us • Financial Aid Administrator Resources • Forms for Financial Aid Administrators

33. Award Calculation • The award for each term is based on thelesser of: • the student’s actual child care costs for the term; • the amount shown on the Maximum Award Chart for the student’s household size and income, prorated for term length and enrollment level; • financial need for the term (school can add actual child care costs to the cost of attendance) *Maximum award will remain at $2,600.

34. Actual Child Care Costs • Actual child care costs are reported by the provider on the application form • School can require receipts to verify the actual costs reported by the provider • School can reference average provider rates collected by Dept of Human Services • Providers cannot charge Child Care Grant recipients a higher cost than non-recipients

35. Actual Child Care Costs • The maximum rate payable to a provider is $5.00 per hour (home care) or $10 per hour (center care) for a maximum of 40 hours per week • Hours per week can include school hours, study time, work time, etc. we do not differentiate between school and work hours

36. Actual Child Care Costs • School can include costs for child care during breaks or portion of term when student not enrolled • However, can’t use actual costs for weeks when student NOT receiving child care • School must subtract any other child care assistance the student or spouse receives (Basic Sliding Fee Child Care Assistance, employer child care assistance, Child Care Grant received by spouse)

37. Actual Child Care Costs • School must also subtract court-ordered (e.g., divorce settlement) child care assistance paid to the provider by the other parent if it is not considered child support already included in the student’s income on the FAFSA • Other sources of child care assistance should be reported by the provider in Section B of application and by the student

38. Maximum Award • The Maximum Award Chart can be found in Appendix 3 of the Postsecondary Child Care Grant Manual • The amount shown on the Maximum Award Chart is an annual 9-month award for a full-time student (15 credits per term) • To determine term award, divide annual award by 2 (semester) or 3 (quarter) and then prorate for enrollment level • For example, an annual maximum award of $2,600 would be divided by 2 at a semester school and then prorated by 12/15ths or 80% for a student enrolled for 12 credits: • ($2,600/2 = $1,300 X .80 = $1,040)

39. Maximum Award • The amount shown on the Maximum Award Chart can be inflated by 10% to compensate for higher infant care costs • The institution must request permission from OHE to make this adjustment on its annual program participation form (Appendix 1A) • Student must document higher infant care costs by having provider complete the Request for Infant Care Adjustment Form (Appendix 9) • “Infant” is defined by the provider, up to a maximum age of 18 months

40. Award Calculation for Sample Student • Mary Doe is a divorced mother with 2 children with a total income of $23,500 and a household size of 3. One child is an infant requiring full-time day care and the other is a 6-year old needing after school care. The provider charges $200 per week for 40 hours of infant care and $75 a week for 15 hours of after school care. Mary’s ex-husband is required by the divorce decree to pay the child care provider $50 a week for each child. Mary is enrolled for 11 credits during a 16 week semester.

41. Award Calculation for Sample Student • Actual costs Infant: $200 – $50 = $150 X 16 weeks = $2,400 semester 6-year old: $75 – $50 = $25 X 16 weeks = $400 semester • Maximum Award from Chart Infant: $2,580 + 10% = $2,838/2 = $1,419 X 11/15 = $1,041 semester 6-year old: $2,580/2 = $1,290 X 11/15 = $946 semester

42. Award Calculation for Sample Student • Child Care Grant Awards for Mary Doe Infant: Lesser of $2,400 actual costs vs $1,041 maximum award = $1,041 6-year old: Lesser of $400 actual costs vs $946 maximum award = $400

43. Prorating Award When MFIP Status Changes • If student is only receiving MFIP benefits for a portion of a term, the student would be eligible for a prorated Child Care Grant Award for remainder of the term • For example, if a student received MFIP for only 8 weeks out of a 16 week semester, the student’s actual costs for 8 weeks would be compared to 50% (8 out of 16 weeks) of the maximum award for the term as derived from the Maximum Award Chart, and the lesser of the two would be the award

44. MFIP Status Change • Child Care Grant award does NOT have to be refunded to the program if the student receives MFIP benefits later in a term, provided the student notified the school within 10 days of the change in status • School can opt to adjust the award and bill the student for the overpayment, but this is not required • If the student did NOT notify the school of the change, the student does not meet program eligibility requirements and should not receive future disbursements during the aid year, nor be considered a renewal applicant in future aid years

45. Award Notification • The school must provide each recipient with an award notice which includes the amount of the award for each term and the names and ages of the recipient’s children • Appendix 5 of Child Care Grant manual is available for this purpose.

46. Award Adjustments • Award may change due to changes or corrections to household size, total income, actual child care costs, MFIP status, enrollment status or other factors affecting award • All changes affecting the award must be dated, documented and maintained in the student’s file • If a change results in an increase in the student’s award, the school must increase the award if funds are available • This includes a student adding credits after the original award has been disbursed

47. Award Adjustments • If a change (other than a drop in enrollment level) results in a reduction of the Child Care Grant award, the school must either: • Reduce the student’s awards for the subsequent terms of the aid year to compensate for the overpayment; or • Bill the student for the overpayment and return the funds to the school’s Child Care Grant account on campus

48. Award Adjustments • If student drops/withdraws credits or withdraws from school after the disbursement of the original award, the school must: • Recalculate the award if the student did not attend classes; OR • Complete OHE Refund Calculation Worksheet (Appendix 13 A&B of the State Grant manual)

49. Disbursement

50. Disbursement • The school can disburse the award to either the student or provider • The award must be disbursed on a term basis, unless the school chooses to disburse more frequently