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Academic Competitiveness Grants and National SMART Grants

Southwest Association of Student Financial Aid Administrators 2006 Tulsa. Academic Competitiveness Grants and National SMART Grants. Fred Sellers Office of Postsecondary Education U.S. Department of Education. Agenda. Law and Regulations Basic Requirements

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Academic Competitiveness Grants and National SMART Grants

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  1. Southwest Association of Student Financial Aid Administrators 2006 Tulsa Academic Competitiveness Grants and National SMART Grants Fred Sellers Office of Postsecondary Education U.S. Department of Education

  2. Agenda • Law and Regulations • Basic Requirements • Student Eligibility: ACG Program • Student Eligibility: National SMART Grant Program • Additional General Requirements • Business Processes

  3. LawandRegulations

  4. Law • Higher Education Reconciliation Act of 2005 (HERA) • Authorizes: • Academic Competitiveness Grant Program (ACG) • National Science and Mathematics Access to Retain Talent Grant Program (National SMART Grant)

  5. Funding • Is not subject to annual appropriations • Authorized by HERA: • 2006-07 -- $790 million • 2007-08 -- $850 million • 2008-09 -- $920 million • 2009-10 -- $960 million • 2010-11 -- $1.01 billion • Ratably reduce awards if funds are insufficient • Carry forward unused funds

  6. Interim final regulations • Published July 3, 2006 • 2006-2007 award year • Invitation to comment through August 17, 2000 • 80 comments

  7. Final regulations • Published November 1, 2006 • Effective date: July 1, 2007 for 2007-2008 award year • Implementation date: may apply changes to 2006-2007 award year

  8. Final regulations • Significant modifications based on public comment • Change • Must receive Pell in the award year, rather than the payment period • Clarification • Academic year progression based on attendance in all eligible programs over the course of a student’s undergraduate education • No prior enrollment in an ACG eligible program while in high school for first-year eligibility

  9. Negotiated rulemaking • 2008-2009 and subsequent award years • Federal Register notice: published on August 18, 2006 • Regional hearings • Berkeley, CA September 19 • Chicago, IL October 5 • Orlando, FL November 2 • Washington, DC November 9

  10. Negotiated rulemaking • Tentative Calendar • Nominations: November 9, 2006 • Sessions: December 2006 February 2006 March 2007 • NPRM: May 2007 • Comments: July 2007 • Effective Date: July 1, 2008 (possible early implementation)

  11. Institutional responsibilities • Institutions are responsible for implementing programs within guidance provided. • Institutions face significant challenges with virtually no lead time. • Challenges will be considered in reviews of an institution’s implementation.

  12. Basic Requirements

  13. Shared requirements • U.S. citizen (noncitizens are ineligible) • Pell recipient in the same award year • Full-time for the payment period • Enrollment in degree program • Progression by student’s t. IV academic year • One Scheduled Award for each t. IV academic year • Calculation of payments for payment periods (same as Pell)

  14. Separate requirements ACG NSG • 1st and 2nd t. IV academic years • Eligible programs: 2- or 4-year degree • Rigorous secondary school program of study • 3rd and 4th t. IV academic years • Eligible programs: 4-year degree • Eligible major

  15. Separate requirements ACG NSG • Scheduled Award • 1st academic year: $750 • 2nd academic year: $1,300 • GPA: at least 3.0 for 1st academic year only • Scheduled Award • 3rd academic year: $4,000 • 4th academic year: $4,000 • GPA: at least 3.0 through prior payment period (cumulative)

  16. Duration of eligibility • ACGs • One grant for first t. IV academic year • One grant for second t. IV academic year • National SMART Grants • One grant for third t. IV academic year • One grant for fourth t. IV academic year • Progression: based on attendance in all eligible programs

  17. Student Eligibility:ACG Program

  18. ACG eligibility • 1st year students • Have completed a rigorous secondary school program of study after January 1, 2006 • May not have been previously enrolled while in high school as a regular student in an ACG eligible program • 2nd year students • Have completed a rigorous secondary school program of study after January 1, 2005 • Have a 3.0 or higher G.P.A. in an eligible program for first academic year

  19. Previous enrollment 1st year eligibility After High School • No previous enrollment restriction for enrollment after high school In High School • Is not eligible if enrolled as a “regular student” in an ACG eligible program • May be eligible if not enrolled as a “regular student” in ACG eligible program

  20. Rigorous secondary school program • Student must complete a rigorous secondary school program of study. • ED has outlined options to meet requirement in the regulations. • Student must complete recognized program for State where completes secondary school.

  21. Options for rigorous program • State-designated program • State submitted program • An advanced or honors program established by a state and in existence for the 2004-2005 or 2005-2006 school year • State Scholars Initiative

  22. Options for rigorous program • A set of courses as outlined in the regulations • Completion of at least two Advanced Placement (AP) courses with passing test score of 3 or two International Baccalaureate (IB) courses with passing test score of 4 http://www.ed.gov/admins/finaid/about/ac-smart/state-programs06.html

  23. Options for rigorous programSet of courses • 4 years of English • 3 years of math • Two of which must be algebra I and above • 3 years of science • Two of which must be one each of biology, chemistry, or physics • 3 years of social studies • 1 year of a language other than English

  24. Rigorous programInstitutional responsibilities • Are responsible for students who self-identify • Are responsible for at least the standard(s) selected by the student • Are encouraged to identify eligible students based on records they have (e.g., high school transcripts, test scores) • Are also responsible if student informs the institution directly

  25. Documenting rigorous program • Institution must document completion of a rigorous program. • Documentation from “cognizant authority” provided by – • The student, or • “Cognizant authority” directly. • For home schooled students, the parent or guardian is the cognizant authority.

  26. Documenting rigorous program • For transfer students, an institution may rely on another school’s determination that student completed a rigorous program. • NSLDS will store the data. • Documentation must come directly from cognizant authority if the institution believes it is • Inaccurate, or • Incomplete.

  27. Grade point averagefor ACG • For second academic year, a student must have a cumulative GPA of at least 3.0 from the first academic year of eligible program. • Only determined once after completion of first academic year.

  28. Student Eligibility:National SMART Grant Program

  29. Eligible majors • Mathematics • Physical sciences • Designated foreign languages • Computer science • Engineering • Technology • Life Sciences • Identified by CIP* code in DCLs GEN-06-06 and GEN-06-15 *Classification of Instructional Program

  30. Monitoring major • Requires that a recipient– • Declare an eligible major in accordance with institution’s academic policy; or • Show intent to declare eligible major if school policy does not yet require a major. • Institution must have process to monitor that student is making progress toward completion of the program with that eligible major.

  31. Grade point averagefor National SMART Grant • For each payment period, student must have a cumulative GPA of at least 3.0. • Includes student’s entire program – all coursework required for degree in approved major • Calculate through last completed payment period • Review prior to each disbursement

  32. Additional General Requirements

  33. Need-based grants • Total of ACG/National SMART Grant, EFC, Pell, and all other estimated financial aid may not exceed cost of attendance. • May not replace EFC • May reduce other aid, including FSEOG, to avoid an overaward • May reduce ACG/National SMART award to avoid an overaward

  34. Determining enrollment status • Must have the same policy for determining enrollment status for Pell and for ACGs and National SMART Grants • Must use same recalculation policy, such as recalculation date (census date), as used for Pell

  35. Disbursements • Follow title IV cash management rules • Make disbursements by payment period • For a cross-over payment period, must assign Pell Grant and ACG/National SMART Grant to same award year • May not disburse ACG or National SMART concurrently at more than one school

  36. Remaining eligibility • Remaining eligibility is based on % of Scheduled Award. • Scheduled Award may be different if balance of an academic year is in a new award year. Example: • Second-year student with ACG for two quarters ($866) receives 2/3 of the 2006-07 Scheduled Award ($1,300). • Student is only eligible, as a second-year student, for the remaining 1/3 of the Scheduled Award in next award year.

  37. Duration of eligibility • Progress and duration of eligibility is measured in title IV academic years. • Duration is based on attendance in all eligible programs.

  38. Academic year A title IV academic year is defined in the HEA to be a minimum of: • 24 semester hours, 36 quarter hours, or 900 clock hours, and • 30 weeks of instructional time (26 for clock hours) .

  39. Credit hours • Regardless of the hours in a program’s academic year, full-time for an undergraduate is a minimum of: • 12 semester hours for a semester or trimester; or • 12 quarter hours for a quarter. • Title IV academic year is often not the same as grade level for institutional purposes and loan limits (i.e., 30 semester hours to progress from grade level 1 to grade level 2).

  40. Weeks of instructional time • Determine the actual number of weeks of instructional time to complete hours earned • For transfer students, may assume weeks of instructional time based on credits accepted

  41. Weeks of instructional time • For the 2006-2007 and 2007-2008 award years, if Formula 1 program, may assume that 30 weeks of instructional time for credit hours in program’s title IV academic year • See DCL GEN-06-18 • May exercise Formula 1 option to assume weeks– • On a student by student basis • For same student for different terms • For transfer credits differently than for home earned credits

  42. Weeks of instructional time • NOTE: for transfer students and for programs using Formula 1 and assuming weeks,an institution must determine the actual number of weeks of instructional time for a student who requests such a determination or questions whether they have completed an academic year.

  43. Fourth academic year • For the 2006-2007 and 2007-2008 award years, fourth academic year ends when the student has completed the credits required for completion of that academic program, as published in the institution’s official academic publications. • Same policy for second year of associate degree program.

  44. Determining Academic Year Progression Payment Formula Used for Eligible Program Academic Year Based on Actual Weeks of Instructional Time and Hours May Assume Weeks Based on Hours (2006-7 and 2007-8) May Assume Weeks Based on Accepted Hours for Transfer Students Must Determine Actual Academic Year Standing if Student Requests Formula 1 YES YES YES YES Formula 3, but eligible to use Formula 1 YES YES YES YES Formulas 2, 3, 4 YES NO YES YES for transfer students

  45. Business Processes

  46. ACG Self-identification • Applied prior to July 1, 2006 • Sent notifications to potentially ACG eligible students • Offered on-line option and a “call in option” nonelectronic filers could use • Applied after July 1, 2006 • FOTW: Potential ACG eligibles submit the information with FOTW. • Paper: Potential ACG recipients will receive a SAR comment directing them to the website and toll-free number.

  47. ACG Self-identification • Questions on student’s high school curriculum • High school completed after January 05 • State where high school curriculumcompleted • Curriculum completed: • Drop-down box with State-designated programs • AP/IB course and test completion • Listed courses

  48. ACG Self-identification • 665,251 students have self-identified as of October 27. • Clearly some students do not meet minimum criteria. • Institutions can use other data such as age to “screen” applicants…no follow-up necessary.

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