The Minnesota Post Secondary Child Care Grant Program

1
The Minnesota Post- Secondary Child Care Grant
Program

• Fall MAFAA Conference
• November 2004

2
Program Purpose

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

3
Eligible Institutions

• Minnesota public post-secondary institutions
• Minnesota private baccalaureate degree granting
  college or university (non-profit or for-profit)
• Minnesota non-profit two-year vocational school
  granting associate degrees

4
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
• Must be making satisfactory academic progress, as
  defined in both federal student aid regulations
  and Minnesota statutes (same criteria used for
  other state financial aid programs)

5
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 Post-Secondary 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

6
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 in accordance with
  guidelines used for Minnesota State Grant)
• The student must not be receiving tuition
  reciprocity benefits from a neighboring state to
  attend a MN public institution

7
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.)

8
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

9
Eligible Student

• The child must meet the requirements for
  inclusion in the independent students household
  size or dependent student's parental household
  size, as specified in applicable Title IV program
  regulations
• Foster children not eligible

10
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 Post-Secondary
  Child Care Grant if the student only received
  MFIP benefits for a portion of the term

11
Eligible Student

• If the student is excluded from receiving MFIP
  benefits (normally due to a penalty), but the
  students children receive MFIP benefits, the
  student IS eligible 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, or Food Stamps ARE
  eligible for the Post- Secondary Child Care Grant

12
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 Post-Secondary Child Care Grant
  application within 10 days of the change taking
  place
• Such reported changes must be date stamped by the
  financial aid office

13
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
• A parent or legal guardian of the students child
  does NOT qualify as an eligible provider
• There is no requirement that the provider be
  located in Minnesota

14
Eligible Provider

• The following persons are NOT eligible child care
  providers natural parent, adoptive parent,
  stepparent, or the following individuals if they
  live with and care for the child when the child's
  parents do not reside in the same home legal
  custodian or guardian, grandparents, brother,
  sister, half-brother, half-sister, stepbrother,
  stepsister, uncle, aunt, first cousin, first
  cousin once removed, nephew, niece, person of
  preceding generation as denoted by prefixes of
  "great," "great-great," or "great-great- great,"
  or a spouse of any person named above even after
  the marriage ends by death or divorce.

15
Application Form

• A student must complete Section A and sign the
  Student Certification Section of MHESOs Post-
  Secondary Child Care Grant Program Application
  (Appendix 2 and 2a of manual)
• By signing Student Certification, student agrees
  to report any changes and allow MHESO, school,
  provider, county to share information

16
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 and the cost for each child, 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

17
Application Form

• Applications must be date stamped by financial
  aid office
• Application must be finalized prior to awarding
  the student
• School must verify household size and total
  income match those use for other aid programs
• School responsible for resolving conflicting
  information

18
Application Form

• The school must keep a copy of the application
  form in the students 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

19
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

20
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 years award was
  given
• Continuing enrollment means student has not
  missed more than one term (plus summer) in last
  academic year
• If funds dont cover all renewal applicants
  meeting initial application deadline, school must
  prioritize these applications according to its
  written policy

21
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 dont cover all first time applicants
  meet initial application deadline, school must
  prioritize these applications according to its
  written policy

22
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 receive after the initial
  application deadline
• Prioritization of applications received after the
  initial deadline date is based on the schools
  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

23
Waiting Lists

• If funds dont cover all eligible applicants,
  school must maintain waiting list
• Prioritization of those on waiting list is based
  on the schools policy
• Schools should encourage students to apply and be
  placed on the waiting list even if no funds are
  available
• Waiting list data reported to MHESO on
  refund/reallocation forms

24
Award Period

• The school must award the student for the full
  9-month academic year (fall through spring terms)
• Awards are recalculated each term based on the
  students enrollment level

25
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

26
Award Calculation

• The school can use MHESO Childcare Calculator
  Spreadsheet to calculate the students award
• The award for each term is based on the lesser
  of
• the students actual child care costs for the
  term
• the amount shown on the Maximum Award Chart for
  the students 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)

27
Actual Child Care Costs

• Actual child care costs are reported by the
  provider on the application form
• School can choose to require receipts to verify
  the actual costs reported by the provider
• The maximum rate payable to a provider is 7.00
  per hour for a maximum of 40 hours per week
• Hours per week can include school hours, study
  time, work time, etc.
• Providers cannot charge Child Care Grant
  recipients higher cost than non-recipients

28
Actual Child Care Costs

• School can include costs for child care during
  breaks
• School must subtract any other child care
  assistance the student or spouse receives or
  provides (as reported on application)

29
Maximum Award Chart

• The Maximum Award Chart is Appendix 3 of the
  Post-Secondary Child Care Grant manual (also
  built into spreadsheet)
• Amount shown is annual 9-month award for
  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 2,200
  would be divided by 2 at a semester school and
  then prorated by 12/15ths or 80 for a student
  enrolled for 12 credits
• (2,200/2 1,100 X .80 880)

30
Maximum Award Adjustment for Infant Care

• Amount shown can be inflated by 10 to compensate
  for higher infant care costs
• Institution must request permission from MHESO 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 13)
• Infant is defined by the provider, up to a
  maximum age of 18 months

31
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. Marys
  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. What would the Child Care Grant
  award be for each child for one 16-week semester?

32
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
• 1,837 10 2,021/2 1,011 X 11/15
  741 semester
• 6-year old
• 1,837/2 919 X 11/15 674 semester

33
Award Calculation for Sample Student

• Child Care Grant Awards for Mary Doe
• Infant
• Lesser of 2,400 actual costs vs 741 maximum
  award
• 6-year old
• Lesser of 400 actual costs vs 674 maximum
  award

34
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 students
  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

35
MFIP Status Change

• Child Care Grant award must be recalculated 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 must collect overpayment or reduce award
  for next term by amount of overpayment
• 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

36
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
  recipients children
• Appendix 5 of Child Care Grant manual is
  available for this purpose

37
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 students file
• If a change results in an increase in the
  students award, the school must increase the
  award if funds are available
• This includes a student adding credits after the
  original award has been disbursed

38
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 students 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 schools Child Care Grant
  account on campus

39
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

40
Disbursement

• Funds cannot be disbursed to the student or
  provider until the student is registered for
  classes for a term
• If the student fails to begin the enrollment
  period, the school must refund the entire Child
  Care Grant award
• The students award must be based on the
  student's enrollment level as of the date of
  disbursement

41
Disbursement

• The school can use any of the following methods
  to disburse the Post-Secondary Child Care Grant
  award
• by institutional check directly to the student or
  provider, or
• by institutional check mailed to the student or
  provider, or
• by crediting the students account, or
• to the student via Electronic Funds Transfer (EFT)

42
Disbursement

• The institution must document the disbursement of
  funds to each student
• The disbursement date for funds disbursed to the
  student prior to the beginning of the term will
  be the first day of required class attendance
• Otherwise, disbursement date is date school
  applies funds, mails or EFTs funds, or hands
  funds to student

43
Late Disbursement

• A school may make a late or retroactive payment
  to the student provided the student did not
  withdraw from school or drop below 6 credits
  during the term in question
• Payment must be based on the students enrollment
  level as of the date of disbursement
• Credits for courses from which the student
  withdrew shall not be counted towards enrollment
  level
• Credits with a grade of F or NC shall be
  counted as credits earned

44
Late Disbursement

• A retroactive payment for a term already
  completed can be made even if the student is no
  longer enrolled at the school, provided the
  student still meets the other program eligibility
  requirements
• A retroactive payment must be made from funds for
  the same fiscal year in which the term took place

45
Refunds

• If a student does not attend any classes for a
  term, the entire Child Care Grant award must be
  refunded
• If a student drops/withdraws credits for a class
  the student never attended, the school must
  determine if an award adjustment is needed by
  comparing the students actual costs for the term
  to the amount on the Maximum Award Chart prorated
  for the revised enrollment level

46
Refunds

• If a student attends classes and then
  drops/withdraws credits or withdraws from school,
  the school must refund a proportional share of
  any remaining refund of institutional charges
  after the institutions share of any required
  Title IV refund is subtracted
• The school would use the MHESO Refund Calculation
  Worksheet (Appendix 14 of State Grant Manual) or
  MHESO Refund Calculator spreadsheet
• All refunds must be returned to the schools
  Child Care Grant account and documented in the
  schools fiscal records
• Late refunds returned directly to MHESO

47
Denial/Termination Notice

• School must deny or terminate the students award
  if the student does not meet the program
  eligibility requirements
• The denial or termination notice must be in
  writing and state the reason(s) the award is
  being denied or terminated and inform the student
  of the right to appeal the adverse action and the
  procedure for doing so
• The provider should also be notified that the
  students award was denied or terminated
• Appendix 6 of Child Care Grant manual is
  available for this purpose

48
Denial/Termination

• Valid reasons for denial or termination include,
  but are not limited to failure to provide
  required information or documentation, failure to
  report status changes, misrepresentation of child
  care costs, extended absences without an approved
  leave of absence, failure to meet any of the
  program eligibility requirements
• Reasons are listed on the denial notice, Appendix
  6
• Payments must be suspended pending the outcome of
  any appeal

49
Denial/Termination

• Students must follow the schools standard
  appeals process for financial aid
• If the student is not satisfied with the results
  of the appeal, the student may ask the school to
  forward the results to the Director of MHESO for
  review
• MHESO Director reviews the case to determine if
  the school made its decision in accordance with
  applicable program statutes and rules and informs
  the student and school of his/her decision, which
  is considered final

50
Allocation Formula

• The schools initial allocation of program funds
  for the year is based on the schools share of
  the total students with children enrolled in all
  participating schools per the previous years
  State Grant database

51
Allocation Formula

• For example, if a school had 1,000 students with
  children and the total students with children at
  all schools were 10,000, the school would receive
  10 of the appropriation for the program
• The initial allocation is reduced if the schools
  utilization rate for the previous year was less
  than 100
• If the schools utilization rate for the previous
  year were 80, the schools current year initial
  allocation would be reduced by 20
• The initial allocation is also capped at the
  amount of funds requested by the school

52
Allocation Formula

• The initial allocation is disbursed in September
  (50) and December (50)
• Schools with leading summer terms can request an
  earlier disbursement pattern by contacting MHESO
• The utilization rate for the previous year is
  determined by subtracting total expenditures from
  total funds available
• School not penalized for excess funds returned to
  MHESO before March 1st of aid year

53
Reallocation of Funds

• MHESO sends out refund/reallocation forms to
  schools five times during the school year
• MHESO will reallocate any refunds returned based
  on schools share of all schools requesting more
  funds

54
Carry Forward/Back

• Schools may carry forward to the next fiscal year
  or carry back to the previous fiscal year up to
  10 of their current year initial allocation
• Schools CANNOT carry BACK funds from the first
  year of a new biennium to the last year of the
  previous biennium
• A biennium is a two year state budget cycle
• 2003-2004 and 2004-2005 (current biennium)
• 2005-2006 and 2006-2007 (next biennium)

55
Administrative Expense Allowance

• A school may use up to 5 of total funds expended
  for Child Care Grant awards during a fiscal year
  for an administrative expense allowance
• Schools must be able to verify that the
  administrative expense allowance was used for the
  administration of the Post-Secondary Child Care
  Grant Program

56
Reporting Requirements

• Schools are responsible for reporting total
  program awards and expenditures to date at the
  end of each month when MHESO requests the
  information via email
• Schools are responsible for collecting data
  requested by MHESO on the End of Year Report
  (Appendix 7 of Child Care Grant manual)

57
Reporting Requirements

• End of Year Reports must be submitted to MHESO by
  August 9
• Any remaining excess funds must be returned by
  July 30
• MHESO will withhold the schools allocation for
  the coming year if the school fails to meet the
  end of year deadline
• Upon request, the school must also report
  information about students who received awards,
  students on waiting lists, and students who were
  denied awards