Common use of CONTRACTUAL AGREEMENT Clause in Contracts

CONTRACTUAL AGREEMENT. Provided the limitations in the following paragraphs are adhered to, an eligible institution may enter into a contractual agreement with an ineligible school or organization under which the ineligible school or organization provides part of the educational program of students enrolled at the eligible school. Eligible institutions are prohibited from entering into contracts with ineligible schools or organizations if the ineligible school or organization: • has had its eligibility to participate in the FSA programs terminated by the Department; or • has voluntarily withdrawn from participation in the FSA programs under a termination, show-cause, suspension, or similar type proceeding initiated by the institution's state licensing agency, accrediting agency, guarantor, or by the Department. Limitations on contractual agreements Under a contractual agreement, the eligible school is always the home school. The home school performs all the aid processing and delivery functions for its students attending the ineligible school or organization. The home school is responsible for maintaining all records necessary to document student eligibility and receipt of aid (see chapter 8). For schools in a contractual agreement, there is a limit on the portion of the program that can be offered by the ineligible school. If both the home and ineligible schools are owned or controlled by the same individual, partnership, or corporation, no more than 25% of the educational program can be provided by the ineligible school. If the two schools are separately owned or controlled, the ineligible school can provide up to 50% of the educational program. However, in the case of separately owned schools, if the contracted portion is more than 25% of the program, the home school’s accrediting agency or state agency (in the case of a public postsecondary vocational institution) must determine and confirm in writing that the agreement meets its standards for contracting out education services. STUDY ABROAD OR DOMESTIC EXCHANGE PROGRAMS A study abroad program must be part of a written contractual or consortium agreement between two or m ore schools. The home school must be located in the United States and courses taken as part of the study abroad program must be accepted for credit by the home institution. The study abroad program does not have to be a required part of the eligible program at the host school in order for the student to be eligible to receive Title IV funds. Study abroad program configurations include:

CONTRACTUAL AGREEMENT. Provided the limitations in the following paragraphs are adhered to, an eligible institution may enter into a contractual agreement with an ineligible school or organization under which the ineligible school or organization provides part of the educational program of students enrolled at the eligible school. Eligible institutions are prohibited from entering into contracts with ineligible schools or organizations if the ineligible school or organization: organization – • has had its eligibility to participate in the FSA programs terminated by the Department; or • has voluntarily withdrawn from participation in the FSA programs under a termination, show-cause, suspension, or similar type proceeding initiated by the institution's state licensing agency, accrediting agency, guarantor, or by the Department. Limitations on contractual agreements Under a contractual agreement, the eligible school is always the home school. The home school performs all the aid processing and delivery disbursement functions for its students attending the ineligible school or organization. The home school is responsible for maintaining all records necessary to document student eligibility and receipt of aid (see chapter 8)7). For schools in a contractual agreement, there is a limit on the portion of the program that can be offered by the ineligible school. If both the home and ineligible schools are owned or controlled by the same individual, partnership, or corporation, no more than 25% of the educational program can be provided by the ineligible school. If the two schools are separately owned or controlled, the ineligible school can provide up to 50% of the educational program. However, in the case of separately owned schools, if the contracted portion is more than 25% of the program, the home school’s accrediting agency or state agency (in the case of a public postsecondary vocational institution) must determine and confirm in writing that the agreement meets its standards for contracting out education services. STUDY ABROAD OR DOMESTIC EXCHANGE PROGRAMS Reminder A study abroad program must be part of a written contractual or consortium agreement between two or m ore more schools. The home school must be located in the United States and courses taken as part of the study abroad program must be accepted for credit by the home institutionStates. The study abroad program does not have to be a required part of the eligible program at the host home school in order for the student to be eligible to receive Title IV FSA funds. However, the credits earned through the study abroad or exchange program must be acceptable toward graduation in the student’s program by the home school. Study abroad program configurations include:: Arrangements with a study abroad organization cite 34 CFR 668.5

CONTRACTUAL AGREEMENT. Provided the limitations in the following paragraphs are adhered to, an eligible institution may enter into a contractual agreement with an ineligible school or organization under which the ineligible school or organization provides part of the educational program of students enrolled at the eligible school. Eligible institutions are prohibited from entering into contracts with ineligible schools or organizations if the ineligible school or organization: organization – • has had its eligibility to participate in the FSA programs terminated by the Department; or • has voluntarily withdrawn from participation in the FSA programs under a termination, show-cause, suspension, or similar type proceeding initiated by the institution's state licensing agency, accrediting agency, guarantor, or by the Department. Limitations on contractual agreements Under a contractual agreement, the eligible school is always the home school. The home school performs all the aid processing and delivery functions for its students attending the ineligible school or organization. The home school is responsible for maintaining all records necessary to document student eligibility and receipt of aid (see chapter 8)7). For schools in a contractual agreement, there is a limit on the portion of the program that can be offered by the ineligible school. If both the home and ineligible schools are owned or controlled by the same individual, partnership, or corporation, no more than 25% of the educational program can be provided by the ineligible school. If the two schools are separately owned or controlled, the ineligible school can provide up to 50% of the educational program. However, in the case of separately owned schools, if the contracted portion is more than 25% of the program, the home school’s accrediting agency or state agency (in the case of a public postsecondary vocational institution) must determine and confirm in writing that the agreement meets its standards for contracting out education services. STUDY ABROAD OR DOMESTIC EXCHANGE PROGRAMS A study abroad program must be part of a written contractual or consortium agreement between two or m ore more schools. The home school must be located in the United States and courses taken as part of the study abroad program must be accepted for credit by the home institution. The study abroad program does not have to be a required part of the eligible program at the host school in order for the student to be eligible to receive Title IV funds. Study abroad program configurations include:home

CONTRACTUAL AGREEMENT. Provided the limitations in the following paragraphs are adhered to, an eligible institution may enter into a contractual agreement with an ineligible school or organization under which the ineligible school or organization provides part of the educational program of students enrolled at the eligible school. Eligible institutions are prohibited from entering into contracts with ineligible schools or organizations if the ineligible school or organization: • has had its eligibility to participate in the FSA programs terminated by the Department; or • has voluntarily withdrawn from participation in the FSA programs under a termination, show-cause, suspension, or similar type proceeding initiated by the institution's state licensing agency, accrediting agency, guarantor, or by the Department. Limitations on contractual agreements Under a contractual agreement, the eligible school is always the home school. The home school performs all the aid processing and delivery functions for its students attending the ineligible school or organization. The home school is responsible for maintaining all records necessary to document student eligibility and receipt of aid (see chapter 8). For schools in a contractual agreement, there is a limit on the portion of the program that can be offered by the ineligible school. If both the home and ineligible schools are owned or controlled by the same individual, partnership, or corporation, no more than 25% of the educational program can be provided by the ineligible school. If the two schools are separately owned or controlled, the ineligible school can provide up to 50% of the educational program. However, in the case of separately owned schools, if the contracted portion is more than 25% of the program, the home school’s accrediting agency or state agency (in the case of a public postsecondary vocational institution) must determine and confirm in writing that the agreement meets its standards for contracting out education services. STUDY ABROAD OR DOMESTIC EXCHANGE PROGRAMS A study abroad program must be part of a written contractual or consortium agreement between two or m ore more schools. The home school must be located in the United States and courses taken as part of the study abroad program must be accepted for credit by the home institution. The study abroad program does not have to be a required part of the eligible program at the host school in order for the student to be eligible to receive Title IV funds. Study abroad program configurations include:

CONTRACTUAL AGREEMENT. Provided the limitations in the following paragraphs are adhered to, an eligible institution may enter into a contractual agreement with an ineligible school or organization under which the ineligible school or organization provides part of the educational program of students enrolled at the eligible school. Eligible institutions are prohibited from entering into contracts with ineligible schools or organizations if the ineligible school or organization: organization – • has had its eligibility to participate in the FSA programs terminated by the Department; or • has voluntarily withdrawn from participation in the FSA programs under a termination, show-cause, suspension, or similar type proceeding initiated by the institution's state licensing agency, accrediting agency, guarantor, or by the Department. Limitations on contractual agreements Under a contractual agreement, the eligible school is always the home school. The home school performs all the aid processing and delivery functions for its students attending the ineligible school or organization. The home school is responsible for maintaining all records necessary to document student eligibility and receipt of aid (see chapter 8)7). For schools in a contractual agreement, there is a limit on the portion of the program that can be offered by the ineligible school. If both the home and ineligible schools are owned or controlled by the same individual, partnership, or corporation, no more than 25% of the educational program can be provided by the ineligible school. If the two schools are separately owned or controlled, the ineligible school can provide up to 50% of the educational program. However, in the case of separately owned schools, if the contracted portion is more than 25% of the program, the home school’s accrediting agency or state agency (in the case of a public postsecondary vocational institution) must determine and confirm in writing that the agreement meets its standards for contracting out education services. STUDY ABROAD OR DOMESTIC EXCHANGE PROGRAMS A study abroad program must be part of a written contractual or consortium agreement between two or m ore more schools. The home school must be located in the United States and courses taken as part of the study abroad program must be accepted for credit by the home institutionStates. The study abroad program does not have to be a required part of the eligible program at the host school in order for the student to be eligible to receive Title IV funds. Study abroad program configurations include:abroad

CONTRACTUAL AGREEMENT. Provided the limitations in the following paragraphs are adhered to, an An eligible institution may enter into a written contractual agreement with an ineligible school or organization under which the ineligible school or organization provides part of the educational program of students enrolled at the eligible school. Eligible institutions are prohibited from entering into contracts with ineligible schools or organizations if the ineligible school or organization: • has had its eligibility to participate in the FSA SFA programs terminated by the Department; or • has voluntarily withdrawn from participation in the FSA SFA programs under a termination, show-cause, suspension, or similar type proceeding initiated by the institution's state licensing agency, accrediting agency, guarantor, or by the Department. Limitations on contractual agreements Under a contractual agreement, the eligible school is always the home school. The home school performs all the aid processing and delivery functions for its students attending the ineligible school or organization. The home school is responsible for maintaining all records necessary to document student eligibility and receipt of aid (see chapter 8). For schools in a contractual agreement, there is a limit on the portion of the program that can be offered by the ineligible school. If both the home and ineligible schools are owned or controlled by the same individual, partnership, or corporation, no more than 25% of the educational program can be provided by the ineligible school. If the two schools are separately owned or controlled, the ineligible school can provide up to 50% of the educational program. However, in the case of separately owned schools, if the contracted portion is more than 25% of the program, the home school’s accrediting agency or state agency (in the case of a public postsecondary vocational institution) must determine and confirm in writing that the agreement meets its standards for contracting out education services. STUDY ABROAD OR DOMESTIC EXCHANGE PROGRAMS A Students usually participate in study abroad program must be part or domestic exchange programs in one of a written contractual two ways: • by paying tuition and fees directly to the school the student is temporarily attending (for example, through an out-of-state tuition waiver system), or consortium agreement between two or m ore schools. The home school must be located in the United States • by paying tuition and courses taken as part of the study abroad program must be accepted for credit by fees at the home institution. The study abroad program does not have to be a required part of the eligible program school, while taking courses at the host school in order for the student to be eligible to receive Title IV funds. Study abroad program configurations include:another school.