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Session 05

Session 05. ACG and National SMART Grant: Student Eligibility & Academic Year Issues David Bergeron Anthony Jones Office of Postsecondary Education. The Higher Education Reconciliation Act of 2005 (HERA) created two new grant programs. Academic Competitiveness Grant (ACG).

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Session 05

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  1. Session 05 ACG and National SMART Grant: Student Eligibility & Academic Year Issues David Bergeron Anthony Jones Office of Postsecondary Education

  2. The Higher Education Reconciliation Act of 2005 (HERA) created two new grant programs Academic Competitiveness Grant (ACG) National Science and Mathematics Access to Retain Talent (National SMART) Grant

  3. Agenda • Quick Update/Overview • Similarities and Distinctions Between Programs • Issues specific to each program • Issues applicable to both programs • Determining enrollment status • Duration of eligibility • Academic Year • Disbursements • Transfers • Need • Remedial Coursework

  4. Other Sessions • This session will focus on Student Eligibility and Academic Year issues. For more detailed information on other ACG and National SMART Grant topics, you may want to attend these other sessions: • Session # 6: ACG and National SMART Grants—Transfer Student and Rigor/Major Issues • Session # 17: ACG and National SMART Grants—Reporting from CPS to COD; Funding Levels and Institutional Reports

  5. Rules and Regulations • Interim Final Regulations published on July 3, 2006 • These regulations govern awards made during 2006-07 and beyond, until changed • Comments received through August 17, 2006 • Final regulations published November 1, 2006 governing 2007-08 with optional early implementation for 2006-07 • Negotiated Rulemaking to begin this fall; regulations produced will likely cover 2008-2009 and beyond • Public Hearings began on September 19, 2006 & ended on November 8, 2006

  6. Authorization and Funding • Funding for these programs is not subject to annual appropriations process: 2006-07 -- $ 790 million 2007-08 -- $ 850 million 2008-09 -- $ 920 million 2009-10 -- $ 960 million 2010-11 -- $ 1.01 billion • If funding insufficient, awards will be ratably reduced • Funds not spent in one year are carried over to subsequent year • No reduction anticipated for 2006-07

  7. Similarities – Both Programs

  8. Distinctions – Both Programs Note: There are second year ACG and third and fourth year National SMART Grants available for 2006-07.

  9. Academic Competitiveness Grants • (ACG)

  10. ACG Eligibility Requirements • U.S. citizen • Federal Pell Grant recipient in the same payment period (or in same award year if school chooses to early implement Nov. 1 regs for 2006-07) • First or second year student in a two or four year degree program • Full-time enrollment • No specific major required

  11. ACG Eligibility Requirements • 1st year students • May not have been previously enrolled in an ACG-eligible program of undergraduate education • Have completed a rigorous secondary school program of study after January 1, 2006 • 2nd year students • Have completed a rigorous secondary school program of study after January 1, 2005 • Have at least a 3.0 G.P.A. in an eligible program

  12. ACG Eligibility Requirements • Student must have completed a rigorous secondary school program of study • ED has outlined options to meet requirement in DCL GEN-06-08 and in the interim regulations published July 3, 2006 (no change in Nov. 1 regs) • Student may self-identify potential eligibility through FAFSA process or school may identify eligible students through institutional process

  13. ACG Applicant Self-Identification • Results of student self-identification will be sent to all schools listed -- • CPS will send ISIRs with new comment codes • If no other changes, message class will be IGAA07AP • Special “flat file” with separate message class of ED2007OP • Student specific information available using FAA Access

  14. ACG Applicant Self-Identification • Comment codes will be provided on SAR for student, and ISIR for schools • Comment codes can be found in ISIR positions 1677 to 1736 • Multiple comment codes - one for each rigorous criteria selected by student

  15. ACG Applicant Self-IdentificationSAR and ISIR Comments

  16. ACG Rigorous Programs • State Designated Program • State Submitted Program • An advanced or honors secondary school program established by a state and in existence for the 04-05 or 05-06 school year • State Scholars Initiative

  17. ACG Rigorous Programs • A set of courses as outlined in the interim final 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

  18. ACG Documenting Rigorous Program • Documentation from “cognizant authority” can be provided: • By the student • An unofficial transcript is acceptable documentation for ACG eligibility if school has no reason to believe it is inaccurate • Directly from “cognizant authority” • For home schooled students, the parent or guardian is the cognizant authority • For transfer students, institution may rely on another school’s determination that student completed a rigorous program • NSLDS will store the data

  19. ACG Grade Point Average • No GPA requirement for 1st academic year • For 2nd academic year ACG, student must have a GPA of at least 3.0 from the 1st academic year • Only determined one time, which must be only at the completion of 1st academic year • Special rule for transfer student – • For student who transfers after completing first academic year, the new school must calculate GPA using the grades from all coursework accepted from prior schools

  20. ACG - A Note About Transfer GPA • The special calculation of GPA using grades from transfer credits is solely for the purpose of determining the GPA for ACG/SMART upon the initial enrollment of a transfer student. Otherwise, such transfer students would not be eligible • The requirement is not intended to change the institutional academic policy regarding the treatment of grades when a student transfers

  21. ACG Grade Point Average – Example A • Student completes first academic year after Spring term and has a cumulative GPA of 2.9 • Student attends summer and earns high grades so that new cumulative GPA preceding the Fall term is 3.1 • Student is not eligible for second year ACG because GPA for the first year was not at least 3.0 on a 4.0 scale

  22. ACG Grade Point Average – Example B • Student completes first academic year after Spring term and has a cumulative GPA of 3.2 • Student attends summer and earns low grades so that new cumulative GPA preceding the Fall term is 2.8 • Student is eligible for second year ACG because GPA for the first year was at least 3.0 on a 4.0 scale

  23. National SMART Grants

  24. National SMART GrantsEligibility Requirements • U.S. citizen • Must be Federal Pell Grant recipient for same payment period (or in same award year if school chooses to early implement November 1 regs for 2006-07) • Third or fourth year student in a four year degree program • Full-time enrollment in an eligible major • Cumulative GPA of at least 3.0 on a 4.0 scale in student’s eligible program • No rigorous high school program required

  25. National SMART Grants Eligibility Determination • No student self-identification as in ACG • Institutions are responsible for reviewing records to identify all eligible students – • ISIR for Pell Eligibility, Citizenship, and other Title IV eligibility requirements • Academic Records for – • Eligible Major or, if available, intent • GPA • Full-time enrollment

  26. Computer Science Engineering Technology Life Sciences Mathematics Physical Sciences Designated Foreign Languages National SMART GrantsMajor Fields of Study Identified by Classification of Instructional Program (CIP) Code from Dear Colleague Letters GEN-06-06 and GEN-06-15

  27. National SMART Grants Monitoring Major • Requires that a recipient – • Declare an eligible major, or • Show intent to declare eligible major (if school policy does not require a major before 3rd year) • In both cases, student must enroll in coursework leading to completion of the program with that eligible major

  28. National SMART Grants Double Majors • If student is enrolled in a double major: • The student must be enrolled in coursework that applies to an eligible major degree program • The school must ensure that student is pursuing completion of the eligible major by enrolling in coursework supportive of timely degree completion

  29. National SMART Grants Double Majors • If student is enrolled in a double major: • Enrollment status and academic year progression must be based on all coursework the student is taking • GPA is for the student’s full academic program; there is no need to “pull-out” the other major’s coursework

  30. National SMART Grants Grade Point Average • Student must have a cumulative GPA of at least 3.0 for each payment period • Includes all courses in eligible program (i.e., all courses applicable to degree in SMART-eligible major) • Calculated from last completed payment period • Must review prior to each disbursement • Provision for “interim disbursement” at school’s risk

  31. National SMART Grants Grade Point Average • There is a special rule for transfers. For a student who transfers after completing two academic years, the new school-- • For the 1st payment period upon transfer, must use the grades from all coursework accepted from prior schools for GPA determination • For subsequent payment periods, comply with school academic policies

  32. National SMART Grants A Note About Transfer GPA • The special calculation of GPA using grades from transfer credits is solely for the purpose of determining the GPA for ACG/SMART upon the initial enrollment of a transfer student. Otherwise, such transfer students would not be eligible. • The requirement is not intended to change the institutional academic policy regarding the treatment of grades when a student transfers

  33. Both Programs • ACG and National SMART Grants

  34. Both ProgramsDetermining Enrollment Status • Schools must use their Pell Grant recalculation date policy to determine enrollment status for ACG and National SMART Grant • Must use same recalculation date (census date) that is used for Pell Grants

  35. Both ProgramsDuration of Student Eligibility • For ACG, students are restricted to: • One grant for the student’s 1st academic year & • One grant for the student’s 2nd academic year • For National SMART Grant, students are restricted to: • One grant for the student’s third academic year & • One grant for the student’s fourth academic year

  36. Both ProgramsDisbursements • Funds maintained and disbursed according to Title IV cash management rules • Disbursements made on payment period basis • If disbursement is for a cross-over payment period, Pell Grant and ACG/National SMART Grant must be assigned to same award year

  37. Both ProgramsDisbursements • Student may not receive a disbursement concurrently from more than one school • ACG and National SMART Grant must be received from same school from which Federal Pell Grant is received

  38. Both ProgramsTransfer Students and Remaining Eligibility • Determination of remaining eligibility for transfers based on % of scheduled award remaining • Example: Student who receives first year ACG for two quarters for a total of $500 has received 2/3 of scheduled award. Student is only eligible, as a first year student, for the remaining 1/3 of the scheduled award. • Note: Scheduled award may be different if balance of first academic year is in a new award year

  39. Both ProgramsNeed Based Grants • Total of EFC and all estimated financial aid cannot exceed cost of attendance • These grants may not replace EFC • School may reduce other aid, including FSEOG, or one of these grants to avoid an overaward • Special sub loan treatment as in campus-based awarding if Chapter 30 VA benefits or AmeriCorps award received • No overaward tolerance

  40. Both ProgramsAcademic Year • HEA provides that an academic year for a student in an undergraduate credit hour program be defined as: • At least 24 semester or trimester credit hours or 36 quarter credit hours; and • At least 30 weeks of instructional time • Schools must use their Title IV academic year definition to determine the student’s academic year in the program of study

  41. Both ProgramsAcademic Year – Credit Hours • Minimum Title IV definition of academic year is often not the same as grade level progression for loans and for other institutional purposes (e.g., 30 credit hours to progress from grade level 1 to grade level 2, but only 24 credit hours are the defined academic year)

  42. Both ProgramsAcademic Year – Credit Hours • School may define its Title IV academic year as more than 24 credit hours – 30 in the prior example • If program is offered by semester, trimester, or quarter and fulltime is defined as at least 12 credit hours, including summer, there is – • No impact on 12 credits as full-time Pell Grant • No impact on 6 credits for FFEL/DL loans • Would impact loan proration • Could impact Pell Grant formula 3 calculations

  43. Both ProgramsAcademic Year – Credit Hours • ACG Example – • Institution defines Title IV Academic Year as 24 credit hours but grade level progression as 30 credit hours • First year ACG recipient completes 24 semester hours • Student now eligible for second year ACG award while still “freshman” and still at first year loan limit

  44. Both ProgramsAcademic Year – Credit Hours • ACG Example – • Institution defines Academic Year as 30 credit hours and grade level progression as 30 credit hours • First year ACG recipient completes 24 credit hours • Student not yet eligible for second year ACG award, because 30 credits required to complete first academic year and student still at first year loan level

  45. Both ProgramsAcademic Year – Credit Hours • National SMART Grant Example – • Institution Defines Title IV Academic Year as 24 credit hours but grade level progression as 30 credit hours • Student has completed a total of 48 credit hours in eligible program and declares eligible major • Student now eligible for first National SMART Grant while still “sophomore” and still at second year loan limit because student is beginning third academic year (as defined)

  46. Both ProgramsAcademic Year – Credit Hours • National SMART Grant Example – • Institution defines Academic Year as 30 credit hours and grade level progression as 30 credit hours • Otherwise eligible student has completed a total of 48 semester hours and declares eligible major • Student not yet eligible for first National SMART Grant while still “sophomore” and still at second year loan limit

  47. Both ProgramsAcademic Year – Weeks of Instructional Time • An institution’s definition of Title IV academic year for a credit hour program must contain a minimum of 30 weeks of instructional time

  48. Both ProgramsAcademic Year – Weeks of Instructional Time • To determine weeks of instructional time in academic year progression for the two grant programs for 2006-07 and 2007-08: • Determine for each student the actual number of weeks of instructional time that were included for the student to complete the number of credit hours in the institution’s defined Title IV academic year; or

  49. Both ProgramsAcademic Year – Weeks of Instructional Time • Assume there were 30 weeks of instructional time for each increment of credit hours that comprise the institution’s defined Title IV academic year (e.g., 24 credit hours equals 30 weeks). • This method only applicable to standard term programs • However, an institution must review the actual weeks upon the request of the student

  50. Both Programs - Academic YearCredits without Weeks of Instructional Time • When tracking actual weeks of instructional time, courses that are not part of an eligible program of postsecondary education or courses not at the postsecondary level such as: • Remedial Coursework; • Advanced Placement (AP) or International Baccalaureate (IB) courses/exams; • College Level Examination Program (CLEP); • Credit for life experience; • Courses taken when not enrolled as a regular student; and • Courses that are not part of an eligible program.

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