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Employee Full Legal Name: _____________________________________________ Employee ID#: _________________
(
Last, First, Middle Initial)
Signature: __________________________________________________ Date: _________________
POLICY ON THE PROHIBITION OF INCENTIVE COMPENSATION
UNDER THE DOE PROGRAM INTEGRITY RULES
Section 487(a)(20) of the Higher Education Act of 1965, as amended (“HEA”) and its implementing regulations at 34 CFR § 668.14(b)(22) prohibit the
Institution from providing incentive compensation to employees and third parties based, in any part, on their success in securing student enrollments
or awarding Title IV, HEA program funds. This strict ban on providing incentive compensation for performing such activities is part of a larger set of
Program Integrity Rules issued by the U.S. Department of Education (“DOE”) in 2010 with an eective date of July 1, 2011 (“Program Integrity Rules”).
These rules cover a broad array of issues intended to promote integrity in Title IV, HEA programs by protecting students as consumers and stemming
potential abuses of Title IV program funds by institutions. These rules apply to all Title IV eligible institutions and thus apply to ASA College, as a partici-
pant in Title IV, HEA programs.
I. OVERVIEW
ASA College has adopted this Policy on the Prohibition of Incentive Compensation under the DOE Program Integrity Rules (“Policy”) to ensure compli-
ance with the incentive compensation requirements of the HEA and Program Integrity Rules. All University divisions, departments, schools, units,
administrative ocers, faculty, and sta are subject to and must comply with (and ensure that their policies and procedures comply with) this Policy.
II. SCOPE
The DOE has issued guidance on the prohibition on incentive compensation that includes FAQs and examples, including examples of activities that are
subject to the prohibition and those that are exempt, and the types of payments that are considered forms of incentive compensation and those that
are not. This guidance is available on the DOE’s website at http://www2.ed.gov/policy/highered/reg/hearulemaking/2009/compensation.html
VI. GUIDANCE
By signing below, you acknowledge that you have asked any questions needed for you to understand the terms, consequences, and eect of this Policy
and fully understand it.
Your signature also means that by accepting employment and/or continuing in employment after the Eective Date, you are consenting to this Policy.
VII. ACKNOWLEDGEMENT AND CONSENT
ASA College prohibits the making of, and may not make, any commission, bonus, or other incentive payment based in any part, directly or indirectly,
upon success in securing enrollments or awarding nancial aid, to any person or entity engaged in any student recruitment or admission activity, or in
making decisions regarding the award of Title IV, HEA program funds. These restrictions do not apply to the recruitment of foreign students residing in
foreign countries who are not eligible to receive Federal student assistance.
III. PROHIBITION ON INCENTIVE COMPENSATION
The prohibition on incentive compensation does not include the following: (a) merit-based adjustments (to employee compensation provided that
such adjustments are not based in any part, directly or indirectly, upon success in securing enrollments or the award of nancial aid. Such adjustment
can occur no more than once per year; and (b) prot-sharing payments so long as such payments are not provided to any person or entity engaged in
student recruitment or admission activity or in making decisions regarding the award of Title IV, HEA program funds.
IV. EXCLUSIONS
a. A “commission, bonus, or other incentive payment” means a sum of money or something of value, other than a xed salary or wages, paid or
given to an entity or a person for services rendered.
b. The phrase “securing enrollments or awarding nancial aid” means activities that an entity or a person engages in at any point in time through
completion of an educational program for the purpose of the admission or matriculation of students for any period of time or the award of nancial aid
to students.
i. These activities include contact in any form with a prospective student, such as, but not limited to, contact through preadmission or
advising activities, scheduling an appointment to visit the enrollment oce or any other oce of the institution, attendance at such an appointment,
or involvement in a prospective student’s signing of an enrollment agreement or nancial aid application.
ii. These activities do not include making a payment to a third party for the provision of student contact information for prospective students
provided that such payment is not based on: (1) any additional conduct or action by the third party or the prospective students, such as those listed in
clause i. above; or (2) the number of students (calculated at any point in time of an educational program) who apply for enrollment, are awarded
nancial aid, or are enrolled for any period of time, including through completion of an educational program.
c. An “entity or person engaged in any student recruitment activity, admission activity or nancial aid award decisions” means:
i. With respect to an entity engaged in any student recruitment or admission activity or in making decisions about the award of nancial aid,
any institution or organization that undertakes the recruiting or the admitting of students or that makes decisions about and awards Title IV, HEA
program funds; and
ii. With respect to a person engaged in any student recruitment or admission activity or in making decisions about the award of nancial aid,
any employee who undertakes recruiting or admitting of students or who makes decisions about and awards Title IV, HEA program funds, and any
higher level employee with responsibility for recruitment or admission of students, or making decisions about awarding Title IV, HEA program funds.
d. The term “enrollment” means the admission or matriculation of a student into an eligible institution.
V. DEFINITIONS
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