Academic Competitiveness

Grants and National SMART Grants:

Determining Eligibility

Heather Boutell Bellarmine University

Patricia Arauz University of

Louisville &

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Why do we have these grants?

“The grants will encourage students to takemore challenging courses in high school —making success in college more likely,according to research—and to pursuecollege majors in high demand in the globaleconomy, such as science, mathematics,technology, engineering and critical foreign languages.”

-- FSA Web site

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ACG Student Eligibility Agenda

Rules/Regulations Authorization and Funding Citizenship Eligible Program Determining Enrollment status Rigorous Program GPA Academic Year Progression Transfers Need

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Rules and Regulations

Interim Final Regulations published July 3, 2006 – These regulations govern 2006-07 awards

Final regulations published November 1, 2006, governing 2007-08 and beyond– Optional early implementation for 2006-07

Negotiated Rulemaking underway; regulations produced will make changes for 2008-2009 and beyond– Sessions began February 5, 2007

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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

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Authorization and Funding

Funds not spent in one year are carried over to subsequent year

If funding insufficient, awards will be ratably reduced (no reduction foreseen for 2006-07)

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Scheduled Award

2006-07 Scheduled Award is the same as the maximum award for the award year – ACG Year 1 - $ 750 ACG Year 2 - $1,300

Same for all students Could change from award year to

award year

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ACG Eligibility Requirements

U.S. citizen (naturalized citizen is U.S. citizen)– Nationals and non-citizens are not

eligible 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)

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ACG Eligibility Requirements

First or second year student in a two or four year degree program

Full-time enrollment No specific major required

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Determining Enrollment Status

Initial Determination of Eligibility– Use enrollment status as of the date

initial eligibility is determined for ACG – This parallels Pell Grant calculations,

in which enrollment status as of the initial calculation date for Pell Grant is used

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Enrollment Status

Must recalculate Pell Grant if– Enrollment changes between payment periods– Enrollment changes within payment period before student

begins all classes– If < full-time, lose ACG

May recalculate after Pell Grant if enrollment status changes after student begins all classes– If recalculate, may use census date after which no further

changes are considered– If redetermine ACG eligibility, must apply same policy as

used for Pell Grant

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Enrollment Status Example

Sequence of Events:– Pell Grant calculated– Census date passes– Student’s enrollment status changes– First determination of ACG eligibility occurs

What enrollment status is used for 06-07?

What enrollment status is used for 07-08?

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Enrollment Status

Original enrollment: ¾ time At census: Full-time At ACG determination: ¾ time

In 2006-2007: Pell: Full-time; ACG: eligible

In 2007-2008: Pell: Full-time; ACG: ¾ time and not eligible

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ACG Eligibility Requirements 1st year students

– May not have been previously enrolled as regular student in an ACG-eligible program of undergraduate education while enrolled in secondary school program of study

– Must have completed a rigorous secondary school program of study after January 1, 2006

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ACG Eligibility Requirements

2nd year students– Must have completed a rigorous

secondary school program of study after January 1, 2005

– Must have at least a 3.0 GPA (on a 4.0 scale) at the completion of the first academic year in an eligible program

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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 regulations)

Student may self-identify potential eligibility through FAFSA process or school may identify eligible students through institutional process

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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

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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

ACG Applicant Self-Identification

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ACG Applicant Self-IdentificationSAR and ISIR Comments

Comment Code

SAR Comment

267 Explains potential ACG eligibility

268 For students who selected a rigorous high school program or state scholars program

269 For students who reported completion of AP/IB courses and tests

270 For students who selected coursework completion

271 Advises student that their Financial Aid Administrator will determine their eligibility

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ACG Rigorous Programs

1. 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

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2. A set of courses as outlined in the interim final regulations

3. 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

ACG Rigorous Programs

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Documenting Rigorous Program

School must have documentation of rigorous program completion. This 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

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Documenting Rigorous Program

For transfer students, institution may rely on another school’s determination that student completed a rigorous program– NSLDS will store the data

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Grade Point Average

No GPA requirement to receive ACG funds for 1st academic year

For 2nd academic year ACG, student must have a GPA of at least 3.0 (on 4.0 scale) at end of the 1st academic year

Only determined one time, which must be only at the completion of 1st academic year

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Grade Point Average

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 if no GPA transferred in

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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 into a program that does not transfer in grades. 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

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GPA & Incompletes

All coursework taken in the payment period must be used in the calculation of a student’s GPA.

If a complete GPA for the payment period is not available, school can make an interim disbursement at its risk. Includes: When the GPA has not yet been

officially calculated for the prior payment period.

When there are one or more grades of “incomplete” for courses taken in prior payment periods.

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GPA & Incompletes

If GPA would be at least 3.0 even if incomplete(s) becomes an F, disbursement can be made

If GPA would not be at least 3.0, you can make: No disbursement, or Interim disbursement

If not resolved by end of payment period No disbursement can be made, or Interim disbursement must be cancelled

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Need 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 ACG to avoid an overaward

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Need Based Grants

Special sub loan treatment as in campus-based awarding if Chapter 30 VA benefits or AmeriCorps award received

No overaward tolerance

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Academic 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, or 900 clock hours; and

– At least 30 weeks of instructional time (26 weeks for clock hours)

Schools must use their Title IV academic year definition to determine the student’s academic year in the program of study

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Academic Year- Credit Hours

Regardless of how many credit hours an institution uses to define a program’s academic year, full-time for an undergraduate is a minimum of –

12 semester credit hours; or 12 quarter credit hours.

Title IV Academic Year is often not the same as grade level progression for institutional purposes and loan limits (i.e., 30 credit hours to progress from grade level 1 to grade level 2).

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Academic Year – Credit Hours (cont’d)

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

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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

Academic Year – Credit Hours (cont’d)

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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

Academic Year – Credit Hours (cont’d)

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Basic Requirement – Academic year progression based on all credits earned in any ACG-eligible program regardless of application to student’s current program Current Institution’s Credits –

All credits earned Transfer Institution’s Credits –

Only credits accepted by current institution

Academic Year – Credit Hours (cont’d)

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24 Semester Credit Hour Definition – First Academic Year is 0 to 23 credits. Second Academic Year is 24 to 47 credits. Third Academic Year is 48 to 71 credits. Fourth Academic Year is 72 to 96 credits.

30 Semester Credit Hour Definition – First Academic Year is 0 to 29 credits. Second Academic Year is 30 to 59 credits. Third Academic Year is 60 to 89 credits. Fourth Academic Year is 90 to 120 credits.

Academic Year – Credit Hours (cont’d)

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Academic 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.

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For the 2006-2007 and 2007-2008 award years, an institution with a 30 week academic year and standard terms (Pell Formula 1) may either:

Determine 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 Title IV academic year definition.

Assume that there were 30 weeks of instructional time for each increment of credit hours that comprises the institution’s Title IV academic year definition.

Academic Year - Weeks of Instruction

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Academic Year – Weeks of Instruction

Institution may exercise option: On a student-by-student basis; For the same student for different terms; Differently for transfer credits vs. home institution credits.

NOTE: An institution must determine the actual number of weeks of instructional time for a student who requests that such a determination be made or questions whether he or she has completed an academic year.

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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 have no weeks of instructional time. These include:

– 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.

Academic Year – Weeks of Instructional Time (cont’d)

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Example: Advanced Placement courses

Student graduated high school May 2006. Enrolls at School A for Fall 2006. Student has 45 AP credits, all with a score of 3 or higher.

School A’s definition of academic year is 24 credit hours and 30 weeks of instructional time.

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Example: Advanced Placement courses

If School A assumes weeks of instructional time, this student would be in his/her second academic year.

• 45/24 = 1.875 However, student has no GPA from “first academic

year” and would therefore not be eligible to receive ACG funds for his/her “second academic year”.

If School A decides to track actual weeks of instruction, the student would be in his/her first academic year since no weeks are associated with AP credits.

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And Now for SMART!

Pat Arauz, University of Louisville

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Eligibility Requirements

U.S. citizen Federal Pell Grant recipient in the same

payment or same award year Third or fourth year student in a four year

degree program Full-time enrollment in an eligible major Cumulative 3.0 GPA (on 4.0 scale) in

student’s eligible program No rigorous high school program required

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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

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Eligible Major Fields of Study

Computer Science

Engineering Technology Life Sciences

Mathematics Physical

Sciences Designated

Foreign Languages

Identified by Classification of Instructional

Program (CIP) Code from Dear Colleague Letters GEN-06-06 and GEN-06-15

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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)

Major must be checked before each disbursement

In both cases, student must enroll in coursework leading to completion of the program with that eligible major

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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

– 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

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List of Eligible Majors

● ED will publish list of eligible majors by Classification of Instructional Programs (CIP) code for each award year

● Students who receive a SMART Grant for an eligible major remain eligible for a SMART Grant in subsequent award years even if the major is no longer classified as an eligible major, if all other eligibility criteria are met

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Changing Majors Between Payment Periods

● Changing to an eligible major

Eligible for subsequent payment periods

Cannot be paid for previous payment periods

● Changing to an ineligible major

Not eligible for subsequent payment periods

Do not have to repay funds disbursed in prior payment periods

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Changing Majors During a Payment Period

● Changing to an eligible major

Not eligible for prior payment periods

Eligible for payment period in which eligible major is declared

● Changing to an ineligible major

Not eligible for subsequent SMART Grant disbursements

Do not have to repay disbursement already made for current payment period

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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, not just major courses)

Must review prior to each disbursement Calculated from last completed

payment period

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Duration of Student Eligibility

For National SMART Grant, students are restricted to: 100% of a Year 3 SMART Grant scheduled award

for the student’s third academic year, and 100% of a Year 4 SMART Grant scheduled award

for the student’s fourth academic year. This is a lifetime limit of one full award at each

academic year. Receipt of Year 4 funds but no Year 3

funds renders student permanently ineligible for Year 3 funds.

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Scheduled Award

2006-07 Scheduled Award is the same as the maximum award for the award year – National SMART Grant Year 1 - $4,000 National SMART Grant Year 2 - $4,000

Same for all students Could change from award year to award

year

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End of Fourth Academic Year

For 2006-2007 and 2007-2008 award years:

For a student enrolled in a bachelor’s degree program, the fourth academic year ends when the student has completed the credits required for completion of that academic program, as published in the institution’s official academic publications.

For example, for a BS program that requires 135 credits, the fourth academic year is from 91 credits to 135 credits (rather than 91 – 120).