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Federal Grant Programs Requirements Review

Explore legislation, payment calculations, and implementation outcomes for Pell, ACG, and National SMART Grant programs. Discuss best practices and recent changes affecting eligibility and award amounts. Understand the impact of the College Cost Reduction and Access Act (CCRAA) on student grants.

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Federal Grant Programs Requirements Review

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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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