PURPOSE: This rule sets forth the policies of the Coordinating Board for Higher Education regarding student and institutional participation in the Fast Track Workforce Incentive Grant.

1. (1) Definitions.

   1. (A) Academic year shall be twenty-four
2. (24) semester or trimester credit hours, thirty-six (36) quarter credit hours, or nine hundred (900) clock hours, and at least thirty

3. (30) weeks of instructional time for a credit hour program or at least twenty-six (26) weeks of instructional time for a clock hour program.

   1. (B) At least half-time student shall mean a student who, regardless of the course delivery method, is enrolled in an eligible program at an approved institution in at least six

4. (6) semester hours, four (4) quarter hours, twelve (12) scheduled clock hours per week, or the equivalent in another measurement system for the fall and spring terms or at least three (3) semester hours, two (2) quarter hours, twelve (12) scheduled clock hours per week, or the equivalent in another measurement system for the summer term. Any student enrolled in a program consisting of less than three hundred (300) clock hours and that is identified by the approved institution as non-credit shall be considered as meeting this definition.

   1. (C) Applicant means a student who has filed a complete and accurate application to receive a Fast Track Workforce Incentive Grant award as prescribed by the Coordinating Board for Higher Education (CBHE) and who qualifies to receive such award under section 173.2553, RSMo and this rule.
   2. (D) Approved institution means any institution located in the state of Missouri that meets the requirements set forth in sections 173.1102(2), (3), or (4), RSMo, that has been approved under 6 CSR 10-2.140, and that has been approved to participate in the federal student financial assistance programs created in Title IV of the Higher Education Act of 1965, as amended.
   3. (E) Award year shall be from July 1 of any year through June 30 of the following year.
   4. (F) Expenses mean any direct or indirect charges including, but not limited to, tuition, fees, books, supplies, and room and board, for educational-related expenses up to the cost of attendance.
   5. (G) Full time employment shall mean fulltime employment as defined by the employer or thirty (30) hours within a fixed and regularly recurring seven (7) day period, whichever is greater.
   6. (H) Governmental sources of funding shall mean federal, state, and any other governmental grant or scholarship aid excluding federal work-study and aid classified as a loan and any other aid that can be converted to a loan.
   7. (I) Income shall mean the amount identified as the federal family Adjusted Gross Income on the most recent Free Application for Federal Student Aid (FAFSA) filed by an applicant that applies to the term in which the student is enrolled.
   8. (J) Initial recipient shall mean a student who is an eligible student as defined in section 173.2553.2(3), RSMo and has not received a Fast Track award in any prior award year.
   9. (K) Participating institution shall mean an approved institution that has a complete Fast Track participation agreement on file with the department.
   10. (L) Payment period means a subset of the academic year for which an eligible student can receive a Fast Track grant. For semesterbased programs, each semester (summer, fall, spring) or trimester constitutes a payment period. For non-semester-based contact hour programs, payment periods are four hundred fifty (450) contact hours or the remaining contact hours when the remainder of the program is less than four hundred fifty

5. (450) contact hours. For non-semester-based credit hour programs, payment periods are fifteen (15) semester credit hours or the equivalent in quarter credit hours.

   1. (M) Residency, for the purpose of this rule, shall be determined by reference to the standards set forth in 6 CSR 10-3.010, Determination of Student Residency.
   2. (N) Satisfactory academic progress shall be a cumulative grade point average (CGPA) of at least two and one-half (2.5) on a fourand Workforce Development

point (4.0) scale, or the equivalent on another scale, and, with the exception of grade point average, as otherwise determined by the approved institution’s policies as applied to other students at the approved institution receiving assistance under Title IV financial aid programs included in the Higher Education Act of 1965. The calculation of CGPA shall be based on the approved institution’s policies as applied to other students in similar circumstances. Students enrolled in programs that use a pass/fail grading system are not subject to the CGPA requirement but must still meet the institution’s academic progress policy cited above. For programs for which a CGPA is not calculated or progress monitored, institutional polices relating to performance and/or completion shall be considered to meet this definition.

1. (O) Tuition and fees shall mean any charges to students classified as tuition, any institutional fees charged to all students, and program-specific fees charged to all students in that program, excluding any course-specific fees.

1. (2) Responsibilities of Institutions of Postsecondary Education.

   1. (A) Participating Institutions must meet the following requirements:

      1. 1. Compliance with 6 CSR 10-2.140

Institutional Eligibility for Student Participation;

1. 2. Before requesting disbursement for an

initial recipient, verify the student has met the eligibility requirements listed in section (3) of this rule; and

1. 3. Before requesting disbursement for a

renewal student, verify—

1. A. The student has met the eligibility

requirements listed in section (3) of this rule; and

1. B. The student has met the definition

of satisfactory academic progress; and

1. C. Governmental sources of funding

are applied correctly to tuition and fees as specified in subsection (5)(D) of this rule.

1. (B) Institutions shall perform and maintain adequate records of each recipient’s loan counseling. Loan counseling must be provided to each recipient at least once each academic year.
2. (C) Institutions shall report the enrollment status of Fast Track recipients on the schedule announced by the department.

1. (3) Eligibility Policy.

   1. (A) To qualify for a Fast Track award, an initial recipient, at the time of his application and throughout the period during which the recipient receives the award, must:

      1. 1. Meet the requirements set forth in

section 173.2553.2(3) and 173.2553.11, RSMo; and

1. 2. Meet the general student eligibility

criteria of Title IV of the federal Higher Education Act, as amended, except the requirement that students be enrolled in credit-based programs.

1. (B) To qualify for a Fast Track award, a renewal student must—

   1. 1. Continue to meet the initial eligibility

requirements; and

1. 2. Meet the Satisfactory Academic

Progress policy as defined in this rule, except that, at the discretion of the participating institution, the CGPA requirement of the Satisfactory Academic Progress policy may be waived for one (1) term.

1. (C) If an approved institution revises the income of an eligible student consistent with the federal regulations pertaining to professional judgment, the revised income will be used to establish student eligibility.

1. (4) Application and Evaluation Policy.

   1. (A) The department shall annually prescribe the time and method for filing applications for financial assistance under the Fast Track Workforce Incentive Grant program. It shall make announcement of its action in these respects.
   2. (B) Students shall apply annually for financial assistance under the Fast Track Workforce Incentive Grant program by having on file with the institution a completed FAFSA with a valid Expected Family Contribution, and completing and submitting the Fast Track application.
   3. (C) The department may require the applicant and the applicant’s spouse to execute forms of consent authorizing the director of revenue to compare financial information submitted by the applicant with the Missouri individual income tax returns of the applicant and the applicant’s spouse for the taxable year immediately preceding the year for which application is made, and to report any discrepancies to the department.

2. (5) Award Policy.

   1. (A) Fast Track awards shall be made by payment period. With the exception of the first payment period, the current payment period must be completed before funds can be requested for the next payment period.
   2. (B) To receive an award, an initial or renewal student must submit all required documentation to the department, including a signed promissory note, for each distribution of funds.

   3. (C) Student eligibility for the Fast Track Workforce Incentive Grant expires at the earliest of the following, except a student who is eligible at the beginning of a term may receive the Fast Track award for the full term in which the expiration criterion is met:

      1. 1. Receipt of the grant for four (4) full-

time semesters. For purposes of Fast Track eligibility, four (4) semesters means sixty (60) semester credit hours, ninety (90) quarter credit hours or one thousand eight hundred (1,800) clock hours. A recipient’s remaining eligibility will be calculated as a percent by dividing the number of hours for which a recipient receives a Fast Track payment by the respective maximum number of hours in that measurement system. Once that calculation results in a percentage of one hundred (100) or more, the individual’s eligibility has expired;

1. 2. Receipt of a bachelor’s degree; or
2. 3. Reaching two hundred percent

(200%) of the academic time, measured in the time typically required to complete the program of study in which the student is currently enrolled as included in an official publication of the institution.

1. (D) For each term or payment period, the amount of the Fast Track award must be calculated based on the remaining costs of actual tuition and fees after any other governmental sources of funding have been applied. When the calculation results in a zero (0) award the amount of the award shall be the lesser of the remaining cost of attendance as calculated by the institution after all non-loan student aid has been applied or five hundred dollars ($500). The five hundred dollar ($500) award, when applicable, will be made regardless of whether the student is enrolled full or part-time.
2. (E) If insufficient funds are available to pay all eligible students, renewal students shall be given priority until all funds are expended. If funds are insufficient to pay all renewal students or to pay all initial recipients after all renewal students are paid, students with the earliest Fast Track application submission date shall be given priority.

3. (F) Financial aid must be applied to tuition and general fees in the following order:

   1. 1. All other available governmental

sources of funding; and

1. 2. The Fast Track award.
2. (G) To be eligible for a Fast Track award, the student must apply for and accept all governmental sources of funding for which he or she is eligible at the institution in which he or she is enrolled.
3. (H) Recipients shall remain eligible for an award and/or for the grant to remain a grant when pursuing a subsequent-credential. Recipients shall only receive an award for one

1. (1) Fast Track eligible program at a time. 6 CSR 10-2

   1. (I) A student who has been denied a Fast Track award for lack of satisfactory academic progress may not receive another Fast Track award until the enrollment period after the applicable standard has once again been met.
   2. (J) No Fast Track award will be made retroactive to a previous award year. A Fast Track award will be made retroactive to a previous payment period within the current award year only upon the sole discretion of the department.
   3. (K) A Fast Track award will be made only after institutional certification of the student’s eligibility and award components.
   4. (L) Once a Fast Track award has been disbursed, no changes will be made to the award calculation regardless of changes in the number of hours in which the recipient is enrolled.
   5. (M) An eligible student’s failure to provide required information by an established deadline may result in loss of the Fast Track Workforce Incentive Grant for the period covered by the deadline.
   6. (N) An eligible student may transfer the Fast Track Workforce Incentive Grant from one (1) participating institution to another without losing eligibility for assistance, but the department shall make any necessary adjustments in the amount of the award.

2. (6) Grant Maintenance.

   1. (A) The grant shall remain a grant and repayment will not be required if the recipient—

      1. 1. Maintains at least half-time enroll-

ment in an eligible program at an approved institution until graduation, with an interruption of qualifying enrollment of no more than twelve (12) consecutive months from the last day of the most recent payment period during which the student received a Fast Track award;

1. 2. Graduates from an approved institu-

tion;

1. 3. Is a resident of the state of Missouri

within twelve (12) months after the date of graduation and maintains residency for at least three (3) years; and

1. 4. Achieves qualifying employment

within twelve (12) months of graduation and maintains qualifying employment for at least three (3) years.

1. (B) For each year, up to three (3) years, the recipient maintains qualified Missouri residency and employment, one-third (1/3) of the amount of the total aggregate Fast Track Workforce Incentive Grant received shall be applied against the total aggregate amount of the grant and shall not be subject to repayment.
2. (C) The recipient shall annually provide AND WORKFORCE DEVELOPMENT

certification to the department the recipient meets the residency and employment requirements of the program.

1. (D) The recipient may apply to the department for a waiver of the conversion of the grant to a loan due to the total and permanent disability or death of the recipient, the recipient’s spouse, or the recipient’s child or if such recipient or recipient’s spouse is providing service to any branch of the Armed Forces of the United States and is transferred out of state and is no longer able to maintain Missouri residency as a result of such service. The disability must be certified as permanent and total by the recipient’s physician. In the event of the death of the recipient, the executor or other custodian of the deceased recipient’s estate may submit an application.

2. (E) Recipients may defer conversion of the grant to a loan if their qualified employment is interrupted for one (1) of the following reasons:

   1. 1. Enrollment in at least half-time study

as certified by the institution of higher education in which the recipient is enrolled;

1. 2. Service in any branch of the armed

forces of the United States; or

1. 3. A temporary disability resulting from

an injury or illness that renders the recipient unable to be employed. The recipient’s physician must certify the nature of the disability, the date the disability began, and the expected duration of the recovery period, not to exceed twelve (12) months.

1. (F) The deferment shall begin on the date the recipient ceases to hold qualified employment. The length of the deferment will be at the department’s discretion based on individual circumstances. The recipient must notify the department at the beginning and end of the interruption in employment and provide any requested supporting documentation. The recipient must also return to qualified employment following the interruption.
2. (G) Recipients must promptly report to the department any change of mailing address.

1. (7) Loan Conversion/Repayment Policy.

   1. (A) If the recipient fails to satisfy any of the criteria for the award to remain a grant, any remaining balance of the aggregate grant shall convert to a loan and the recipient shall repay the balance of the grant funds received from the state with interest.
   2. (B) Recipients must notify the department within thirty (30) days of a change in enrollment status or employment that would trigger repayment.
   3. (C) Recipients must promptly report to the department any change of mailing address.
   4. (D) Interest shall be charged on the unpaid balance of the amount received at the federal direct loan interest rate for Direct Subsidized Undergraduate Loans in effect at the time the student enters the first eligible program at an approved institution, regardless of when the grant is first received for that program. Interest shall accrue from the date the recipient initially fails to meet the grant forgiveness criteria and continue until the outstanding balance of principal and interest has been paid in full.
   5. (E) The department shall mail a repayment schedule to the recipient.
   6. (F) The payment amount will vary depending on the total amount received plus accrued interest. Under no circumstances shall the minimum monthly payment be less than fifty dollars ($50) or the minimum annual payment be less than six hundred dollars ($600).
   7. (G) The repayment schedule shall be based on a ten (10) year repayment plan unless the minimum monthly payment amount results in a shorter repayment period.
   8. (H) The recipient shall make the first payment no later than the last day of the month in which the repayment schedule is dated. Subsequent payment dates will be specified on the repayment schedule. Payments are delinquent if not received by the department within ten (10) business days of the payment due date.
   9. (I) Payments shall be applied first to accrued interest with any remaining amount applied to principal.
   10. (J) Recipients shall not be subject to penalty for early repayment.

   11. (K) Recipients may defer principal and interest payments for a period approved by the department for the following reasons:

       1. 1. Enrollment in at least half-time study

as certified by the institution in which the recipient is enrolled. The deferment shall be initiated on the date the recipient begins halftime enrollment;

1. 2. Experiencing economic hardship as

determined by the department;

1. 3. Medical condition limiting the recipi-

ent’s ability to continue repayment including, but not limited to, illness, disability, or pregnancy, as certified by the recipient’s physician; or

1. 4. Service in any branch of the armed

forces of the United States.

1. (L) The recipient must notify the department at the beginning and end of the deferment period and submit to the department any requested supporting documentation.
2. (M) Interest will not accrue during a deferment period.
3. (N) Payments made during a deferment period will be applied first to any interest accrued prior to the deferment period and then to principal. and Workforce Development
4. (O) In the event a recipient, the recipient’s spouse, or child becomes totally and permanently disabled as certified by a physician or dies, the requirements of the recipient to make any further payment of principal and interest will be discharged immediately upon department approval of the request for discharge. The recipient must apply to the department for loan discharge and provide any requested supporting documentation. In the event of the death of the recipient, the executor or other custodian of the deceased recipient’s estate may submit an application.

1. (8) Default.

   1. (A) A recipient’s account will be in a default status when the recipient has failed to make three (3) consecutive, scheduled payments.
   2. (B) The department will notify the recipient of the default status by certified mail sent to the recipient’s last known mailing address.

   3. (C) Upon default, principal and interest are due in full immediately, unless:

      1. 1. The recipient makes satisfactory

repayment arrangements within thirty (30) days from the date of the certified notice: and

1. 2. The recipient makes three (3) consec-

utive, on-time payments that are at least the minimum amount provided on the repayment schedule resulting in the removal of default status.

1. (D) All loans in repayment, deferment, or default status will be monitored. All available legal remedies may be pursued to ensure full repayment of loans. The borrower may be responsible for reasonable collection costs, including, but not limited to, attorney fees, court costs, and other fees.

1. (9) Information Sharing Policy.

   1. (A) All information on an individual’s Fast Track application will be shared with the financial aid office of the institution to which the individual has applied, or is attending, to permit verification of data submitted. Information may be shared with federal financial aid offices if necessary to verify data furnished by the state or federal governments as provided for in the Privacy Act of 1974, 5 U.S.C. sections 552 and 552a.

AUTHORITY: sections 173.2553 and 173.2554, RSMo Supp. 2019.* Original rule filed Dec. 23, 2019, effective June 30, 2020.

*Original authority: 173.2553, RSMo 2019 and 173.2554, RSMo 2019.