Is There Specific Guidance For Clock-Hour Programs and Students Affected By the Coronavirus?

This AskRegs Knowledgebase Q&A was updated on February 1, 2023 to note that the COVID-19 national emergency will end on May 11, 2023.

This AskRegs Knowledgebase Q&A was updated on January 20, 2021 to reflect the January 15 Electronic Announcement  and December 11, 2020 Federal Register which extends the flexibility related to Title IV-approved leaves of absence (LOAs) through the end of the first payment period that begins after the end date for the federally-declared qualifying emergency related to COVID-19. Institutions have the option to early implement provisions in the September 2, 2020 Federal Register which, if the licensure body allows, clock-hour programs may be offered via distance education synchronously or asynchronously. Otherwise, accrediting agencies must meet the requirements of 34 CFR 602.21(c). All other flexibilities still apply only through the end of the payment period during which the qualifying emergency ends. 

Generally, no. According to guidance NASFAA has received from the U.S Department of Education (ED), unless otherwise indicated, the flexibilities issued in the March 5, 2020 Electronic Announcement, the April 3, 2020 Electronic Announcement, the May 15, 2020 Electronic Announcement  and the August 21, 2020 Electronic Announcement apply across all institutions, including schools with clock-hour programs. ED does not intend to issue separate guidance that is specifically related to clock-hour programs. However, ED did emphasize the following considerations. NASFAA provided clarification and additional information wherever possible.

Nonterm Payment Periods In the Common Origination and Disbursement (COD) System:

• Academic year, Financial Award Begin and End Dates, and disbursement dates initially entered in COD do not have to be updated for any payment period beginning on or before June 1, 2020.
• Disbursement amounts must be correct.
• Extension of payment periods should not be an issue for nonterm programs, as the payment period does not end until the student has completed all the hours and weeks of instructional time in the payment period. In other words, if the nonterm clock-hour payment period is interrupted due to COVID-19, the payment period is extended and then resumes when the student is allowed to resume classes as either residential or online classes within 180 days. This concept is not new for nonterm clock-hour programs. Refer to 34 CFR 668.4(c) and see the notes below about reentering a program.

Withdrawals and Return of Title IV Funds (R2T4):

• Normal R2T4 regulations under 668.22 and rules continue to apply. Under the May 15 announcement, if the student is a withdrawal, an R2T4 calculation still must be performed but unearned aid does not need to be returned by the student or the school. This is what we refer to as the R2T4 waiver. See AskRegs Q&As, Does the CARES Act Waive R2T4 Requirements When a Student Withdraws Due To COVID-19?, How Do We Implement the R2T4 Waiver If We Are Performing the First R2T4 Calculation For the Student?, and How Do We Implement the R2T4 Waiver If We Are Re-Disbursing Aid We Already Returned Under the R2T4 Calculation?
• If the student's enrollment is interrupted due to COVID-19, the school can place the student on a Title IV-approved leave of absence (LOA), and the institution may retain those Title IV funds to apply when the student continues enrollment. If the student is not placed on a Title IV-approved LOA, the student is a withdrawal. See the March 5th Electronic Announcement for additional R2T4 guidance for when the student's enrollment is interrupted due to COVID-19, such as determining withdrawal dates, reentering within the same payment period, and determining the number of days to include in the R2T4 calculation.
• Since the March 5 announcement, there have been several revisions to what is considered a Title IV-approved LOA when applying COVID-19 guidance. See AskRegs Knowledgebase Q&A, Must It Be a Title IV-Approved Leave Of Absence To Qualify Under the COVID-19 Guidance?
• If the student does not return from the revised Title IV-approved LOA within the applicable timeframe, the student is a withdrawal effective on the start date of the LOA, and an R2T4 calculation must be completed.
• If the student withdraws and reenters the same program/payment period within 180 days, 668.4(f) continues to apply with no additional flexibilities. See Volume 5, Chapter 1  of the FSA Handbook for more guidance.
• If the student reenters the same payment period within 180 days, but does so on or after July 1, 2020, the student’s original award year continues to be the 2019-20 award year. Students who reenter within 180 days are considered to have reentered the same payment period. Title IV funds should continue to be disbursed from the award year associated with that payment period. See Volume 5, Chapter 1 of the FSA Handbook for more guidance, including instructions on reporting and requesting funds from award years that have closed.
• If the student withdraws and reenters the same program after 180 days, the student does not reenter the same payment period. The remaining credit or clock hours in the program are treated as if they comprise the total number of hours in the program. New payment periods are defined according to the remaining hours in the program, the associated weeks of instructional time, and the academic year definition for the program. See Volume 5, Chapter 1 of the FSA Handbook for more guidance.
• For guidance for determining whether a student withdrew due to a national emergency and for the new R2T4 reporting requirements, see the May 15th announcement.

Packaging Rules:

• The rules for awarding and disbursing Title IV aid for clock-hour programs have not changed. See the program-specific awarding rules in Volume 3 of the FSA Handbook.
• There are different rules for awarding Emergency FSEOG funds. See AskRegs Q&A, How Can Schools Use Campus-Based Funds As Emergency Aid?
• There are also different rules for awarding the 50 percent share of Higher Education Emergency Relief Fund (HEERF) monies that are earmarked to provide emergency grants directly to students (HEERF student grants). Search "HEERF" in the AskRegs Knowledgebase.

Moving Clock-Hour Programs To Online Formats: When a school moves a clock-hour program to an online format in response to the COVID-19 outbreak, the school should consider the following guidance from the FAQs attached to the March 5, 2020 Electronic Announcement:

"An institution that offers a clock hour program in a distance education format must ensure that each clock hour of instruction is supervised by qualified institutional personnel. In most cases, synchronous instruction through distance education, where students are actively engaged with an instructor in real-time discussion, would provide an adequate platform for the instructor to supervise students in clock hour programs.

However, an institution that offers asynchronous instruction in a clock-hour program must maintain an online learning platform or another system for monitoring each student’s academic engagement to ensure that students are academically engaged in at least 50 minutes for each hour that is recorded as a clock hour attended by the student. In this circumstance, an instructor can complete a student’s timesheet to include clock hours earned in a distance education format, but the hours must be based on data or the instructor’s own knowledge that the student was academically engaged for at least 50 minutes out of each clock hour that is recorded.

Institutions must ensure that any clock hour offered through distance education meets all applicable requirements set by accrediting agencies and States and fulfills applicable educational prerequisites for State licensure."

​​​​​​​Additional Information: As NASFAA receives additional guidance specific to clock-hour programs from ED, we will update this AskRegs Q&A and post it in Today's News. Schools with specific questions on this topic should continue to submit them to ED at [email protected] or to NASFAA via the AskRegs Knowledgebase.

Note:  This AskRegs Q&A was previously updated on January 20, 2021 to reflect the January 15 Electronic Announcement  and December 11, 2020 Federal Register which extends the flexibility related to Title IV-approved LOAs through the end of the first payment period that begins after the end date for the federally-declared qualifying emergency related to COVID-19. Institutions have the option to early implement provisions in the September 2, 2020 Federal Register which, if the licensure body allows, clock-hour programs may be offered via distance education synchronously or asynchronously. Otherwise, accrediting agencies must meet the requirements of 34 CFR 602.21(c). All other flexibilities still apply only through the end of the payment period during which the qualifying emergency ends.