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Handbook for Student Law for Higher Education Administrators - Revised edition


James Ottavio Castagnera

The Handbook for Student Law for Higher Education Administrators is a practical tool, intended for administrators, dealing with students in higher education and focusing principally on four-year institutions. Addressing the ever-developing relationship between higher education and the law, the book provides the academic administrator with the means to knowledgeably and confidently navigate the many legal threats and challenges facing colleges today. Using examples from real cases and scenarios from numerous institutions, the handbook provides sample policies, checklists, and advice that administrators can apply to a wide variety of situations, both preventatively and proactively. This 2014 revised edition of Dr. Castagnera’s popular handbook is a current compendium of practical knowledge and guidance, useful for any administrator dealing with the legal minefield that is higher education in this second decade of the new millennium.


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Chapter 2 Financial Aid and Tuition 33


CHAPTER 2 Financial Aid and Tuition Financial Aid If the admissions process is complicated by contract considerations, financial aid is a minefield filled with legal hazards for the hapless, or reckless, administrator. No bet ter ex ample c an be posed, as t his work go es t o press, t han that of th e University of Phoenix. U.S. ex rel. Hendow v. University of Phoenix, 461 F.3d 1166 (U.S. Court of Appeals, 9th Circuit, 2006). When an edu cational in stitution wi shes to re ceive federal subsidies under Title IV of the Higher Education Act, it must enter into a Program Participation Agreement with the Department of Educa tion (DOE), in which it agrees to abide by a panoply of statu tory, regulatory, and contractual requirements. One of t hese requirements is a ba n on incentive compensation: a ban o n th e i nstitution’s p aying recru iters on a per -student b asis. The ba n prohibits schools from “ provid[ing] any commission, bonus, or other incentive payment base d directly or indire ctly on success i n sec uring enrollments or financial ai d to a ny persons or ent ities engaged i n a ny st udent re cruiting or admission ac tivities or in making de cisions reg arding t he award of st udent financial assis tance.” This requirement is meant to curb the ris k that recruiters will “s ign up poorl y qua lified stude nts who wil...

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