State Aid in Texas

1. State Aid in Texas TASFAA ABC’s Pre-Conference Workshop October 5, 2011 Lyn Wheeler Kinyon Assistant Director, Grants and Special Programs Texas Higher Education Coordinating Board lyn.kinyon@thecb.state.tx.us

2. The Texas Higher Education Coordinating Board (THECB) • Purpose Created by the Texas Legislature in 1965 to provide leadership and coordination for the Texas higher education system to achieve excellence for the college education of Texas students. • Responsibilities • Assess the state of higher education in Texas; • Develop recommendations to the Legislature, Governor, and institutions for its enhancement; and • Establish policies for the efficient and effective use of the state’s higher education resources.

3. Divisions of the Agency • Academic Planning and Policy • Academic Affairs and Research • Planning and Accountability • P-16 Initiatives • Business and Finance • Business and Support Services • Business Office • Grants and Special Programs (G&SP)* • Loan Programs Operations (LPO) * • Information Technology • Human Resources * Main areas that work closely with colleagues in the financial aid community.

4. Main Responsibilities of G&SP and LPO • Provide service to students, families, and institutions. • Interpret legislation and develop rules. • Allocate available funding and process funding requests. • Process applications. • Collect student loan payments and process benefits. • Provide training. • Perform program reviews and audits. • Collect and provide information requested by the Legislature.

5. The Birth of a State Program • Legislature passes a statute authorizing a program. • Legislature appropriates funds – or not. • THECB writes & adopts rules – if applicable. • Programs are administered as: • Centralized (CB-Based) • applications submitted to the CB, the CB selects and announces award recipients, and the CB supplies funding to the institution. • Decentralized (Campus-Based) • CB allocates funding to the institution, applications submitted through the institution, the institution selects recipients, CB supplies funding to the institution, and the institution submits reports to the CB. • Solely at the institutional level • students apply through the institution, the institution determines eligibility, and the CB supplies no funding to the institution.

6. State Programs and Trends • Grants, Scholarships, Loans, and Work. • Exemptions – allow lower tuition/fees for certain groups. • Waivers – allow resident fees for non-resident students. • Trends: • Encourage efficiency through: • required enrollment. • performance. • completion. • Penalize inefficiency through: • time limitations. • drop limitations. • added costs for exceeding limitations.

7. Texas Public Education Grant (TPEG) • Provide grants to needy students at public institutions. • Funded through statutory tuition set-asides. • Eligibility requirements: • enroll at a public institution • financial need and no concurrent athletic scholarship. • register with Selective Service or be exempt (public universities, health-related institutions, TSTC campuses and Lamar State Campuses – not community colleges) • Administered by institution per CB approved guidelines • Eligibility continuation: • not an entitlement – renewal awards occur at the institution’s discretion • no statutory end to student eligibility

8. Toward EXcellence, Access, & Success (TEXAS) Grant • Provide grants to academically-prepared needy students at public institutions – funded through appropriations. • Initial eligibility requirements: • entering undergraduate with the recommended high school curriculum (or higher) or an associate’s degree. • Texas resident with need, an EFC < 4,000, and enrolled at least ¾ time. • registered with Selective Service (or exempt) and no drug conviction. • Renewal eligibility requirements: • calculated need • end of 1st year – institution’s SAP policy; end of 2nd year and thereafter – overall GPA of 2.5, 75% annual completion rate, and 24 SCH’s completed annually. • eligibility ends with bachelors, 150 grant SCH’s, or 5 yrs for 4-yr plan/6 yrs for 5-yr plan.

9. TXG Priority Model – Starts Fall 2013 • Stronger emphasis needed to improve student outcomes and increase student success by giving priority to financially needy students who achieved certain standards/proven success benchmarks. • Priority will be given to students who meet the priority deadline and have any two of the following : • Left-over funds after priority students are awarded will go to other eligible students meeting current requirements. • 2-year colleges excluded.

10. Texas Educational Opportunity Grant (TEOG) • Provide grants to needy students at public 2-yr institutions. • Funded through appropriations • Initial eligibility requirements: • entering undergraduate not receiving a TEXAS Grant. • Texas resident with need, an EFC < 2,000, and enrolled at least ½ time. • registered with Selective Service (or exempt) and no drug conviction. • Renewal eligibility requirements: • calculated need. • end of 1st year – institution’s SAP policy; end of 2nd year and thereafter – overall GPA of 2.5 and 75% annual completion rate. • ends with associate’s degree, 75 SCH’s, or 4 yrs.

11. Tuition Equalization Grant (TEG) • Provide grants to needy students at private/non-profit institutions. • Funded through appropriations. • Eligibility requirements: • Texas resident or National Merit Finalist with need and enrolled at least ¾-time. • Undergraduate or graduate. • registered with Selective Service (or exempt). • not receiving an athletic scholarship. • required to pay more tuition than is required at a comparable public institution. • Eligibility continuation: • GPA of 2.5 and annual completion rate of 24 hrs per yr UG and 18 hrs per yr GR. • UG – 5 yr max for 4 yr degree, or 6 yr max for 5 yr degree.

12. Top 10 Percent Scholarship • Purpose is to encourage outstanding high school graduates in the top 10 percent of their class to attend a public institution in Texas - funded through appropriations. • Initial eligibility requirements: • Texas resident. • complete Recommended or higher curriculum and graduate from a public or private high school in Texas. • rank in the top 10 percent of the HS graduating class. • submit the FAFSA in time to generate the CPS results in a non-rejected status, or submit the TASFA to the institution, by the established deadline . • meet need requirement (COA – EFC – PELL >=$1). • register with Selective Service or be exempt. • enroll full-time in the fall semester and maintain full-time enrollment through the census date of the semester.

13. Top 10 Percent Scholarship • Renewal eligibility requirements: • submit the FAFSA in time to generate the CPS results in a non-rejected status, or submit the TASFA to the institution, by the established deadline . • meet need requirement (COA – EFC – PELL >=$1). • enroll full-time in the fall semester and maintain full-time enrollment through the census date of the semester. • maintain a cumulative 3.25 GPA, complete at least 30 SCH in the previous year, and complete at least 75% of the hours attempted in the previous year. • Bachelor’s degree or 4 years – whichever comes first. • Workforce bonus eligibility requirements: • major in critical workforce shortage area and enroll as a junior or senior. • have overall GPA of 3.0 at the beginning of the relevant junior or senior year.

14. Texas B-On-Time Loan (BOT) • Purpose is to provide eligible Texas students no-interest loans and loan forgiveness upon graduation for meeting specific goals. • Funded through appropriations and tuition set-asides from 4 year public universities. • Eligibility requirements: • Texas resident enrolled full-time and eligible for federal aid. • Eligibility continuation: • end of 1st year – institution’s SAP policy. • thereafter, overall GPA of 2.5; 75% completion in the most recent year. • ends with completion of a Bachelor’s degree or 150 hours of BOT. • Repayment benefits: • loan forgiveness if graduation within a certain time frame, number of hours, and with a certain GPA. • 0% interest loan if not eligible for forgiveness.

15. College Access Loan Program (CAL) • Purpose is to provide alternative loans to Texas students who are unable to meet the cost of attendance. • Available at public and private/non-profit institutions. • Funded through the sale of state bonds. • Eligibility requirements: • Texas resident enrolled at least ½ time. • receive a favorable credit evaluation or provide an eligible cosigner who has good credit standing. • meet the institution’s SAP policy.

16. Texas College Work-Study (TCWS) • Purpose is to provide eligible Texas students employment as a means to fund their education. • Available at public and private institutions and funded through appropriations. Matching funds required unless proof is provided that matching is waived for FCWS. • Eligibility requirements: • Texas resident with financial need and enrolled at least ½-time. • Registered with Selective Service (or exempt). • Not receiving an athletic scholarship. • Not enrolled in a seminary or other religious program.

17. Other Programs • Exemptions/Waivers: • Hazlewood Exemption • Peace Officers and Fire Fighters Exemption • Scholarships: • Kenneth Ashworth Scholarship • Good Neighbor Scholarship • Programs not funded beginning with 11/12: • Educational Aide Exemption • Early High School Graduation Scholarship • Combat Exemption • Professional and Vocational Nursing Scholarships • TANF Exemption • Byrd Scholarship • LEAP/SLEAP Grants

18. Questions or Need Assistance? • 1-800-242-3062 or 512-427-6340 • grantinfo@thecb.state.tx.us • lyn.kinyon@thecb.state.tx.us or extension #6393 • G&SP Listserv: • Official communications – program guidelines, allocations, etc. • Subscribe or unsubscribe: • http://lists.state.tx.us/mailman/listinfo/txgnsp-l