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Session 10

Session 10. Requirements for Federal Grant Programs Sophia McArdle Carney McCullough Fred Sellers Office of Postsecondary Education. Revised November 20, 2007. Agenda. Legislation Pell/ACG/NSG Payment Calculations 2006-2007 Negotiated Rulemaking

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Session 10

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  1. Session 10 Requirements for Federal Grant Programs Sophia McArdle Carney McCullough Fred Sellers Office of Postsecondary Education Revised November 20, 2007

  2. Agenda • Legislation • Pell/ACG/NSG Payment Calculations • 2006-2007 Negotiated Rulemaking • ACG and National SMART Grant Final Regulations • Academic Year Progression • Grade Point Average (GPA) • Prior Enrollment • Successful Completion: Rigorous Secondary Programs • Recognition of Rigorous Secondary Programs • Determination of Eligible Majors • Documenting Eligible Majors

  3. First Year ImplementationOutcomes

  4. Nationally ACG: • $233,038,410 awarded to 299,089 students National SMART Grants: • $195,544,735 awarded to 60,976 students

  5. ACG: Top Five Institutions • Pennsylvania State University (4,128) • University of California – Davis (1,926) • University of Texas – Austin (1,718) • University of California – Los Angeles (1,686) • Ohio State University (1,620)

  6. National SMART Grants: Top Five Institutions • Brigham Young University (1,584) • University of Phoenix (1,326) • University of California – San Diego (921) • DeVry University (789) • Pennsylvania State University (715)

  7. Top National SMART Grant Majors • Biological and Biomedical Sciences • Engineering • Computer Science

  8. Top Foreign Language Majors • Russian • Japanese • Chinese

  9. “Best Practices” • Discuss the ACG and National SMART Grant Programs in State, local, and school-level outreach • Reach out to all potential eligibles, not just students who self-identify • Advocate for low-income students’ access to rigorous, college preparatory classes and pursuit of high-demand majors

  10. Legislation

  11. Legislation • Reauthorization • Senate passed July 24, 2007 • House • College Cost Reduction and Access Act (CCRAA) • Enacted September 27, 2007

  12. Legislation: CCRAA – ACG and National SMART Grants • Makes no changes to the ACG and National SMART Grant Programs

  13. Legislation: CCRAA – Pell • Eliminates Federal Pell Grant “tuition sensitivity” as of July 1, 2007 Effective: July 1, 2007

  14. Legislation: CCRAA – Pell • Uses mandatory funds to increase the Pell Scheduled Award by • $ 490 for 2008-09 and 2009-10 • $ 690 for 2010-11 and 2011-12 • $ 1,090 for 2012-13 • Increases applicable to students eligible based on the maximum award set in an appropriations act Effective: 2008-2009 award year

  15. Legislation: CCRAA – Pell • For 2008-09, if appropriations act sets a $4,310 maximum award, the Scheduled Award would be: • Maximum $4,800; and • Minimum $890. • Mandatory funds do not increase the number of eligible students. Effective: 2008-2009 award year

  16. Legislation: CCRAA – TEACH Grants • Establishes Teacher Education Assistance for College and Higher Education (TEACH) Grant Program • Is effective starting in 2008-2009 Effective: 2008-2009 award year

  17. Legislation: CCRAA – TEACH Grants • Provides $4,000 for each academic year • Has aggregate maximums • $16,000 for first baccalaureate student or postbaccalaureate, nondegree student • $8,000 for graduate student

  18. Legislation: CCRAA – TEACH Grants • Student eligibility if a current enrolled student: • Is Title IV eligible; • Has 3.25 GPA or statutory alternatives; and • Is completing, or plans to complete, coursework necessary to begin a career in teaching

  19. Legislation: CCRAA – TEACH Grants • Student eligibility if a current or prospective teacher, seeking a graduate degree: • Is a teacher or retiree with expertise in a shortage area; or • Is or was a teacher with high quality alternative certification, e.g., Teach for America

  20. Legislation: CCRAA – TEACH Grants • Sign agreement to serve: • Must teach at Title I school • Must teach in specified areas(mathematics, science, foreign language, bilingual education, special education, or high-need field approved by the Secretary) • Treated as a Direct Unsub Stafford Loan if student does not teach

  21. Pell/ACG/NSG Payment Calculations

  22. Payment Calculations • Revisions in General Provisions final regulations package • Payment period definition • Programs eligible for Formula 1 • Payment calculations for Formulas 4 and, for Pell only, 5A • Payment calculations the same for all three grant programs

  23. Payment Calculations • Added educational programs eligible for Formula 1 • Is no change for traditional calendar programs currently eligible to use Formula 1, i.e., programs with • two semesters or trimesters, or three quarters, in fall through spring, and • at least 12 hours as full-time for all terms in award year

  24. Fall Semester 16 weeks of i.t. Spring Semester 15 weeks of i.t. Summer 10 weeks of i.t. Case Study: Currently Eligible for Formula 1 • Traditional semester-based academic calendar where full-time is defined as at least 12 semester hours in all terms. • Eligibility to use Formula 1 continues.

  25. Payment Calculations • Adds programs eligible for Formula 1 where— • Any two semesters or trimesters, or three quarters is at least 30 weeks of i.t.; • Program starts in cohorts of students, e.g., monthly; • Program is offered exclusively in semesters, trimesters, or quarters; and • Student not enrolled in overlapping terms

  26. Term A -15 weeks Term A -15 weeks Term A -15 weeks Term B -15 weeks Term B -15 weeks Term B -15 weeks Cohort 1 Cohort 2 Term A -15 weeks Term B -15 weeks Cohort 3 Cohort 4 Case Study: Final Rules Eligible for Formula 1 • The program consists of semesters. A new cohort of students start a new semester on the first workday of each month.

  27. Payment Calculations • Revised Formula 4 payment calculations (Formula 5A also) • No change in programs that use Formula 4: • Credit-hour programs without terms • Clock-hour programs • Lesser of two fractions based on the academic year measures

  28. Payment Calculations Formula 4 Scheduled Award * the lesser of— Hours in the payment period Hours in the academic year OR *weeks in the payment period *weeks in the academic year *Weeks of instructional time

  29. Case Study 1: Payment Calculation 28 quarter hours 28 weeks of instructional time • A nonterm undergraduate certificate program with scheduled classes • Academic calendar: 28 quarter hours over 28 weeks of instructional time • Academic year: 36 quarter hours and 30 weeks of instructional time

  30. 14 hours 14 weeks 14 hours 14 weeks Case Study 1: Payment Calculation • Payment periods: 14 quarter hours and 14 weeks of instructional time • Formula 4 to calculate grant program payment for a payment period • Student: Pell Scheduled Award of $4,000

  31. 14 hours 14 weeks 14 hours 14 weeks Step 1 Scheduled Award = $4,000 Step 2 Lesser of— 14  $4,000 = $1,555 36 OR 14$4,000 = $1, 866 30 x x Case Study 1: Payment Calculation • Payment for each payment period

  32. 14 hours 14 weeks 14 hours 14 weeks Case Study 1: Payment Calculation 1st Pell disbursement 2nd Pell disbursement • The student receives two Pell disbursements that total $3,110 out of a $4,000 Scheduled Award.

  33. Case Study 2: Payment Calculation 1200 clock hours 30 weeks of instructional time • Nonterm undergraduate certificate program with scheduled classes • Academic calendar: 1200 clock hours over 30 weeks of instructional time • Academic year: 900 clock hours and 26 weeks of instructional time

  34. 450 clock hours 13 weeks 450 clock hours 13 weeks 300 clock hrs 4 weeks Case Study 2: Payment Calculation • Payment periods • 450 clock hours and 13 weeks of instructional time; • 450 clock hours and 13 weeks of instructional time; and • 300 clock hours 4 weeks of instructional time

  35. 450 clock hours 13 weeks 450 clock hours 13 weeks 300 clock hrs 4 weeks Case Study 2: Payment Calculation • Formula 4 to calculate grant program payment for a payment period • Student: Pell Scheduled Award of $1,000

  36. 450 clock hours 13 weeks Step 1 Scheduled Award = $1,000 Step 2 Lesser of— 450  $1,000 = $500 900 OR 13$1,000 = $500 26 450 clock hours 13 weeks 300 clock hrs 4 weeks Case Study 2: Payment Calculation • First and second payment periods x x

  37. 450 clock hours 13 weeks Step 1 Scheduled Award = $1,000 Step 2 Lesser of— 300  $1,000 = $333.33 900 OR 4$1,000 = $153.85 26 450 clock hours 13 weeks 300 clock hrs 4 weeks Case Study 2: Payment Calculation • Third payment period x x

  38. 450 clock hours 13 weeks 450 clock hours 13 weeks 300 clock hrs 4 weeks 1st Pell disbursement 2nd Pell disbursement 3rd Pell disbursement Case Study 2: Payment Calculation • Student receives • $1,000 for the first two payment periods • $0 for the third payment period; or, if the third payment period is in a new award year, $153.85 (assuming same Scheduled Award).

  39. 2006-2007NegotiatedRulemaking

  40. Negotiated Rulemaking • Federal Register notice - August 18, 2006 • 2008-2009 and subsequent years • Regional hearings • Negotiating committee on ACGs and National SMART Grants • No consensus

  41. Negotiated Rulemaking Issues • Prior enrollment • Rigorous secondary programs • GPA requirements • Eligible majors • Academic year progression • Mandatory participation • Certificate programs

  42. Negotiated Rulemaking • NPRM: August 7, 2007 • Comments: due September 6, 2007 • 52 commenters • Final regulations: October 29, 2007 • Effective July 1, 2008 • Early implementation

  43. ACG and National SMART Grant Final Regulations

  44. Final Regulations Academic Year Progression

  45. Final §691.6(a), (b), and (c) A student’s progression is based on the student’s attendance in all ACG and National SMART Grant eligible programs only at the institution in which the student is currently enrolled. Academic Year Progression - Basics Award Eligibility Current §691.6(a), (b), and (c) • A student’s progression is based on the student’s attendance in all ACG and National SMART Grant eligible programs at all institutions.

  46. Final §691.6(a), (b), and (c) A student may not receive more than two ACG Scheduled Awards and two National SMART Grant Scheduled Awards during the student’s undergraduate education. Academic Year Progression - Basics Award Eligibility Current §691.6(a), (b), and (c) • A student may not receive more than two ACG Scheduled Awards and two National SMART Grant Scheduled Awards.

  47. Academic Year Progression - Basics Exact Accounting (Final §691.6(e)(1)) • As with a student’s credit or clock hours, must determine a student’s progression in the weeks of instructional time of an academic year through an exact accounting of those weeks of instructional time • Are some exceptions • Is in line with current regulations, but are changes to the exceptions

  48. Academic Year Progression - Basics Transfer Students (Final §691.6(d)(3)) • The institution to which the student transferred mustcount both: • The credit or clock hours earned by the student at prior institutions that are accepted for the student’s ACG or National SMART Grant eligible program, and • An estimated number of weeks of instructional time completed by the student. • Current requirement is a “may” in lieu of an exact accounting.

  49. Academic Year Progression - Basics Transfer Students (Final §691.6(d)(3)) • To determine weeks of instructional time, must use specified formula: (hours accepted * weeks of i. t. in ac. yr) hours in ac. yr. • Subject to prohibition under §691.6(d)(2) for hours without weeks

  50. Alternative Methods (Final §691.6(e), (f), (g), and (h)) • Three alternative methods for determining the weeks of instructional time that assure general compliance with the academic year progression requirements • Replacement of current §691.6(d) on treatment of summer terms • Also replacement to transitional guidance

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