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It’s a Grant, It’s a Loan, It’s a TEACH Groan

It’s a Grant, It’s a Loan, It’s a TEACH Groan. We will discuss:. TEACH Grant fundamentals Description Institutional eligibility Academic program eligibility Student eligibility Counseling requirements Satisfaction of service agreement The reality of repayment. Description.

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It’s a Grant, It’s a Loan, It’s a TEACH Groan

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  1. It’s a Grant,It’s a Loan,It’s a TEACH Groan

  2. We will discuss: • TEACH Grant fundamentals • Description • Institutional eligibility • Academic program eligibility • Student eligibility • Counseling requirements • Satisfaction of service agreement • The reality of repayment

  3. Description • TEACH: The Teacher Education Assistance for College and Higher Education Grant Program • A product of the College Cost Reduction and Access Act of September 27, 2007 • Implementation effective July 1, 2008

  4. Description (cont.) • For a high-level, two page overview of the TEACH Grant program, visit www.teachgrant.ed.gov

  5. Description (cont.) • For an in-depth discussion of TEACH, study the NPRM in the 03/21/2008 Federal Register available at: ifap.ed.gov/fregisters/FR03212008TECH.html or go to ifap.ed.gov and click on ‘Federal Registers’ under Laws and Regulations

  6. Description (cont.) • The TEACH Grant: • Provides up to $4,000 per academic year to a student intending to teach full-time in a high-need subject area in a low income, non-profit elementary or secondary school for four years within the eight years following completion of program of study. • Becomes a Direct unsubsidized Loan with interest accruing from date of disbursement if teaching requirements are not fulfilled. 34 CFR 686.43

  7. Description (cont.) • The maximum award year amount of the TEACH Grant is a function of enrollment status: • Full time $4,000 • Three-quarter time $3,000 • Half time $2,000 • Less than half time $1,000 Minimum award is $25. 34 CFR 686.21

  8. Description (cont.) • A student’s cumulative limits for TEACH Grants are as follows: • Undergraduate plus post-baccalaureate studies: $16,000 • Graduate studies at the Master’s Degree level: $8,000 34 CFR 686.21

  9. Institutional Eligibility • An otherwise eligible Title IV institution may qualify to participate in TEACH if it is financially responsible and falls within one of the following four categories: • 1) Offers a high-quality teacher preparation program at either the baccalaureate level or masters level • 2) Offers a teacher certification program at the post-baccalaureate level

  10. Institutional Eligibility (cont.) • 3) Offers a baccalaureate degree in a high-need field and has an agreement with an institution in category 1) or 2) to provide courses necessary for its students to begin a career in teaching • 4) Offers a two-year program that is • fully acceptable towards a teacher preparation baccalaureate described in 1) or • a high-need field at a school described in 3). 34 CFR 686.2

  11. Institutional Eligibility (cont.) • School participation in the TEACH Grant program is optional • Participation may begin July 1, 2008, or at a later date • School’s Program Participation Agreement will need to be updated at http://eligcert.ed.gov after Dear Colleague Letter is issued giving directions

  12. Academic Program Eligibility • Unlike other Title IV programs, not all degree programs are TEACH eligible • The TEACH eligible institution must determine which of its academic programs qualify a student for the TEACH Grant

  13. Academic Program Eligibility (cont.) • “An eligible program…prepares an individual • To teach in a high-need field and • Leads to a baccalaureate or master’s degree, or • Is a post-baccalaureate program of study.” 34 CFR 686.2

  14. Academic Program Eligibility (cont.) • “A two-year program of study that is acceptable for full credit toward a baccalaureate degree is considered to be a program of study that leads to a baccalaureate degree”. 34 CFR 686.2

  15. Academic Program Eligibility (cont.) • High-need fields are defined in one of two ways, by inclusion in • A list of the six high-need fields in the Federal Register, 34 CFR 686.2, or • A year- and state-specific list in the annual Teacher Shortage Area Nationwide Listing at www.ed.gov/about/offices/list/ope/pol/tsa.doc

  16. Academic Program Eligibility (cont.) • The six high-need fields listed in the Federal Register are: • Bilingual education and English language acquisition • Foreign language • Mathematics • Reading specialist • Science • Special education

  17. Academic Program Eligibility (cont.) • In addition, the high-need fields specific to Ohio in 2007-2008 include the following: • Art-Visual and Performing • Economics • English/Language Arts • Exceptional Children/with disabilities • Geography • Government • History

  18. Student Eligibility • Must complete FAFSA • The TEACH Grant is not need based, however, the Grant together with other estimated financial assistance may not exceed the student’s Cost of Attendance • EFC is required, however, verification is not required even if student is selected by the central processor

  19. Student Eligibility (cont.) • Student must be a U. S. citizen or an eligible non-citizen and meet the requirements of 34 CFR 668, Subpart C • Student must be enrolled in an institution that has chosen to participate in TEACH: • An undergraduate institution • An institution offering post-baccalaureate teacher certification, or • An institution offering a Master’s Degree

  20. Student Eligibility (cont.) • Student must be: • Enrolled in coursework that is necessary to begin a career in teaching, or • Planning to complete such coursework. Note: Such coursework may include subject area courses such as math courses for a student who intends to be a math teacher. • Enrolled in an academic program designated as TEACH Grant eligible

  21. Student Eligibility (cont.) • Student must meet certain academic standards: • Generally, a current cumulative 3.25 GPA on a 4.0 scale verified before each disbursement, or • A score above the 75th percentile on one of the batteries of a nationally-normed standardized admissions test 34 CFR 686.11

  22. Student Eligibility (cont.) • Exceptions to academic standards: • Students in their first term of post-secondary studies need a final cumulative high school GPA of 3.25 or meet the 75th percentile test • Transfer students in their first term at new institution need a GPA of 3.25 on all transfer credits or meet the 75th percentile test • Current or former teachers or retirees receiving a TEACH Grant for a master’s degree have no similar academic standards

  23. Student Eligibility (cont.) • Finally, the student must sign a TEACH Grant Agreement to Serve (ATS) • The electronic ATS: • Is required to be completed each award year in which a TEACH grant is received • Discusses the obligation of teaching service • Includes circumstances by which the Grant is converted to an unsubsidized loan • Includes the terms of the loan

  24. Counseling Requirements • Institution must provide three types of counseling to TEACH Grant recipients: • Initial Counseling • Subsequent Counseling • Exit Counseling • NOTE: The institution must maintain documentation supporting compliance with counseling requirements

  25. Counseling Requirements (cont.) • Initial counseling must be conducted: • Prior to the first disbursement of the TEACH Grant, • In person, by audio-visual means, or by interactive electronic means • At a minimum, 11 items must be presented during the counseling. Refer to 34 CFR 686.32 (a) for the list.

  26. Counseling Requirements (cont.) • Subsequent counseling must be conducted: • Prior to the first disbursement of each subsequent TEACH Grant award, • In person, by audio-visual means, or by interactive electronic means • At a minimum, 5 items must be presented during the counseling. Refer to 34 CFR 686.32 (b) for the list.

  27. Counseling Requirements (cont.) • Exit counseling must be conducted: • Before enrollment ceases or within 30 days of determination of unofficial withdrawal, • In person, by audio-visual means, by interactive electronic means, or by mailing written counseling materials • At a minimum, 15 items must be presented during the counseling. Refer to 34 CFR 686.32 (c) for the list.

  28. Counseling Requirements (cont.) • Some of the items addressed during counseling include: • How to identify low-income schools and documented high-need fields • How to request a suspension of the eight-year period • The warning that ‘Once a loan, always a loan’ • Availability of FSA Ombudsman

  29. Satisfaction of Agreement to Serve (ATS) • In order to satisfy the terms of the ATS, the teacher must serve full-time: • In a low-income school • As a highly-qualified teacher, • In a high-need field • For four years during the eight years following completion of course of study, and • Will submit annual documentation.

  30. Satisfaction of ATS (cont.) • Service as a full-time teacher • A full-time teacher is one who meets the standard used by a State in defining full-time employment as a teacher. 34 CFR 686.2

  31. Satisfaction of ATS (cont.) • The teacher must teach for four years in a low-income school. • However, if the low-income school is no longer considered low-income after the teacher’s first year of teaching, then subsequent years of teaching at that school will satisfy that provision of the ATS. • For listing of low-income schools, click on the SEARCH button at www.tcli.ed.gov

  32. Satisfaction of ATS (cont.) • The teacher must teach for four years in a high-need subject area. • However, if the high-need subject is no longer considered high-need after the teacher’s first year of teaching, then subsequent years of teaching in that subject area will satisfy that provision of the ATS. • Teaching a majority of subjects in a high-need field qualifies as teaching in a high-need subject area.

  33. Satisfaction of ATS (cont.) • Teach four complete school years within the eight years • Excludes summer teaching • Two complete and consecutive half years of teaching from different schools equals a year • A year is defined as nine consecutive months for year-round schools

  34. Satisfaction of ATS (cont.) • Periods of suspension of the eight year rule are available: • Enrollment in school for state certification or licensure or for TEACH eligible program of study • Some limited conditions covered under the Family Medical Leave Act 34 CFR 686.41 • These suspensions are for one-year increments not to exceed total of three years

  35. Satisfaction of ATS (cont.) • A call or order to active duty status for more than 30 days qualifies for a suspension of the eight-year rule. • This period of suspension ends upon completion of the military service

  36. Satisfaction of ATS (cont.) • Timely documentation of the following circumstances must be submitted or the Grant becomes a Direct unsubsidized loan: 34 CFR 686.40 • Completion of program of study • Withdrawal from program of study • Employment as a full-time teacher • Intention to be employed as full-time teacher • Request for period of suspension

  37. The Reality of Repayment • Assume a student received a $4,000 TEACH Grant for four consecutive years • X years after receiving first disbursement, the $16,000 Grant converts to a loan • The chart shows the following information: • The accrued interest from disbursement of Grant because of conversion to a loan • Monthly payment under 10 year repayment • Total amount paid at end of payment period

  38. The Reality of Repayment (cont.) Years after Accrued Monthly Total First disb. Interest Payment Repaid 4 $ 2,448 $212 $25,476 6 $ 4,624 $237 $28,481 9 $ 7,888 $275 $32,989 12 $11,152 $312 $37,496 $16,000 TEACH Grant converted to a 6.8% loan repaid over a 10 year period with accrued interest

  39. In Conclusion • If your school plans to participate in the TEACH Grant program, be proactive by fully disclosing to students: • Eligibility requirements to receive the Grant • The benefits of the Grant • All conditions that must be met to fulfill the obligations accompanying the Grant, and • The reality of repayment

  40. Caution The information contained in this presentation is based on the March 21, 2008, Federal Register, the Notice of Proposed Rule Making. This information is subject to change when the Final Regulations are published later this year.

  41. Any Questions or Comments? Ed Schroeder eschroeder@glhec.org

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