SFA Update Mary Jane Michalak Associate Commissioner April 16, 2013 4/12/2017 SFA Update Mary Jane Michalak Associate Commissioner April 16, 2013

Today’s Agenda Legislation Next Steps 2013-2014 Awards Information 4/12/2017 Today’s Agenda Legislation 1348 1312 1001 Next Steps 2013-2014 Awards Information National Guard / CVO Questions

HB 1348 Frank O’Bannon / 21st Century Scholars Reform 4/12/2017 HB 1348 Frank O’Bannon / 21st Century Scholars Reform Completion Requirements 30/60/90 24/48/72 GPA Requirements “Satisfactory Academic Progress” Annual Awards Grid Awards schedule Incentives EFC for all students (independent and dependent)

4/12/2017 Current Model Base Award = Prior-Year Tuition up to a Max * 80% - Federally-Determined Expected Contribution Student Performance Incentive for Academic Honors / Associate Degree = Prior-Year Tuition up to a Max * 20% The “max” referred to here is what is generally referred to as “caps” or “award maxima.”

4/12/2017 New Model Base Award Simple grid based on EFC and school type Student Performance Incentive Flat-dollar increases for getting good grades, accelerating completion, and earning credentials along the way

Example Base Awards Expected Family Contribution Institution $0 4/12/2017 Example Base Awards Expected Family Contribution Institution $0 $1 to $500 $501 to $1,000 $1,001 to $1,500 Public On-Time $3,100 $2,600 $2,100 $1,600 Full-Time $2,500 $1,700 $1,300 Ivy Tech or Proprietary $1,100 $900 KEY POINT: this conforms to current law amounts for non-AH students (76% of recipients). The amount is this grid represent “keep the caps flat.” Notice that all students now use EFC, like Feds, universities, and most other states. Indiana is an outlier in its use of PC for dependent students. How this enhances productivity: This helps students better understand and plan for the aid they will receive, eliminating unnecessary spending due to poor planning (and lowering cost per degree conferred).

Student Performance Incentive: Paying for what we value 4/12/2017 Student Performance Incentive: Paying for what we value Preparedness Earn a H.S. honors diploma (freshman only) Good grades Keep GPA of 3.0 or higher last year Credentials Hold an associate degree Acceleration Complete 39+ credit hours last year The amounts on this slide are based on the current public school incentive program amount of $800; acceleration calculated to spread the “lost” fourth year of funding across three years, based on the public school cap. The first incentive is freshman-year only. Better prepared students will have better grades and better workforce outcomes (quality), are more likely to have the skills needed to complete (completion), and will waste less time and money in remediation (productivity). The remaining incentives are for sophomores, juniors, and seniors. The acceleration bonus removes the financial “penalty” for completing early.

Implementation Schedule: 2013-2014 4/12/2017 Implementation Schedule: 2013-2014 Maximum base awards through formula, as with current system; PC and EFC used Academic Honors/Technical Honors 20% of max award (same as 2012-2013) Incoming Freshmen will receive AH/TH award for one year only.) GPA – Satisfactory Academic Progress (Freshmen and Sophomores) Completion requirements (Freshmen) The amounts on this slide are based on the current public school incentive program amount of $800; acceleration calculated to spread the “lost” fourth year of funding across three years, based on the public school cap. The first incentive is freshman-year only. Better prepared students will have better grades and better workforce outcomes (quality), are more likely to have the skills needed to complete (completion), and will waste less time and money in remediation (productivity). The remaining incentives are for sophomores, juniors, and seniors. The acceleration bonus removes the financial “penalty” for completing early.

Implementation Schedule: 2014-2015 4/12/2017 Implementation Schedule: 2014-2015 Maximum base awards through grid (all students)* EFC for all students GPA – SAP (Freshmen, Sophomores, Juniors) Completion requirements (Freshmen, Sophomores) Grandfathered Academic Honors / Technical Honors bonus (Juniors, Seniors) New Incentives (Freshmen, Sophomores) Degree maps (Freshmen) * Students who enter college under the formula will be grandfathered in under the “on-time award” The amounts on this slide are based on the current public school incentive program amount of $800; acceleration calculated to spread the “lost” fourth year of funding across three years, based on the public school cap. The first incentive is freshman-year only. Better prepared students will have better grades and better workforce outcomes (quality), are more likely to have the skills needed to complete (completion), and will waste less time and money in remediation (productivity). The remaining incentives are for sophomores, juniors, and seniors. The acceleration bonus removes the financial “penalty” for completing early.

Implementation Schedule: 2015-2016 4/12/2017 Implementation Schedule: 2015-2016 Maximum base awards through grid (all students)* EFC for all students GPA – SAP (all students) Completion requirements (Freshmen, Sophomores, Juniors) Grandfathered Academic Honors / Technical Honors bonus (Seniors) New Incentives (Freshmen, Sophomores, Juniors) Degree maps (Freshmen, Sophomores) * Students who enter college under the formula will be grandfathered in under the “on-time award” The amounts on this slide are based on the current public school incentive program amount of $800; acceleration calculated to spread the “lost” fourth year of funding across three years, based on the public school cap. The first incentive is freshman-year only. Better prepared students will have better grades and better workforce outcomes (quality), are more likely to have the skills needed to complete (completion), and will waste less time and money in remediation (productivity). The remaining incentives are for sophomores, juniors, and seniors. The acceleration bonus removes the financial “penalty” for completing early.

Implementation Schedule: 2016-2017 4/12/2017 Implementation Schedule: 2016-2017 Frank O’Bannon / 21st Century reform fully implemented Maximum base awards through grid (all students)* EFC for all students GPA – SAP (all students) Completion requirements (all students) New Incentives (all students) Degree maps (Freshmen, Sophomores, Juniors) The amounts on this slide are based on the current public school incentive program amount of $800; acceleration calculated to spread the “lost” fourth year of funding across three years, based on the public school cap. The first incentive is freshman-year only. Better prepared students will have better grades and better workforce outcomes (quality), are more likely to have the skills needed to complete (completion), and will waste less time and money in remediation (productivity). The remaining incentives are for sophomores, juniors, and seniors. The acceleration bonus removes the financial “penalty” for completing early.

Implementation Schedule: 2017-2018 4/12/2017 Implementation Schedule: 2017-2018 HB 1348 fully implemented Maximum base awards through grid (all students)* EFC for all students GPA – SAP (all students) Completion requirements (all students) New Incentives (all students) Degree maps (all students) The amounts on this slide are based on the current public school incentive program amount of $800; acceleration calculated to spread the “lost” fourth year of funding across three years, based on the public school cap. The first incentive is freshman-year only. Better prepared students will have better grades and better workforce outcomes (quality), are more likely to have the skills needed to complete (completion), and will waste less time and money in remediation (productivity). The remaining incentives are for sophomores, juniors, and seniors. The acceleration bonus removes the financial “penalty” for completing early.

4/12/2017 HB 1348 - Part-Time Grant Require recipients to complete 18 credit hours per year Extend full-time performance requirements (e.g., GPA) to part-time students Prohibit the use by students receiving outside tuition reimbursement Set application deadline to August and administer grant centrally, rather than current block-style starting in 2014 In addition to changes to the Frank O’Bannon Grant, legislators will consider tweaking the Part-time Grant program. Again, the goal is to promote timely completion and accountability through the use of credit-hour completion requirements. Part-time grant recipients would be required to complete a minimum of 18 credit-hours per calendar year, putting the student on pace to graduate in just over 150 percent the typical time. In addition, SFA will seek to discount a student’s part-time grant by the amount of outside tuition reimbursement the student receives. For example, if a student has financial need of $1,000, but receives $750 per semester in tuition reimbursement from his employer, that student’s part-time grant would be $250. This change will free up funds for the students with the greatest financial need. In addition to these changes, two other points should be noted: - The program will move away from the block-grant system of distribution and to a more centralized distribution system (as with other state awards). We believe this will bring greater consistency and efficiency to the program, and maximize the dollars going to the students. - The application deadline for Part-time Grant applicants will be moved to August, so that those students who are late-filers can still receive some state support.

HB 1312 - EARN Indiana Program 4/12/2017 HB 1312 - EARN Indiana Program Enhance eligibility allow for-profit companies to participate allow all employers to participate year-round extend student eligibility to all students with financial need Promote the program through employer networks Ensure that EARN positions are experiential and résumé-building Better match students to relevant positions The purpose of all student aid is to help the student succeed long-term. Extending eligibility to all types of employers gives students more choices as to which type of organization will best help them after they graduate. For example, a political science major may benefit from working in local government, whereas a marketing major may benefit more from an internship at a for-profit advertising agency.

HB 1001 – Budget Bill Anything possible until April 29 4/12/2017 HB 1001 – Budget Bill Anything possible until April 29 Teacher Stipends (in House Budget only) Up to $5,000 for education majors during the student-teaching semester if the student is: A minority OR Focused on special education or other high-need fields identified by the Commission Meet certain GPA requirements Stipend not limited to tuition & fees, paid directly to student by school corporation $450k per year for each program

HB 1001 – Budget Bill Maintains commitment to Financial Aid 4/12/2017 HB 1001 – Budget Bill Maintains commitment to Financial Aid Increases financial aid by $72.1 million over biennium Higher Education Award $125M (2014) and $106M (2015) Freedom of Choice $47M (2014) and $40M (2015) 21st Century Scholars $109M (2014) and $120M (2015)

HB 1001 – Budget Bill EARN (work study) and Part-Time awards flat 4/12/2017 HB 1001 – Budget Bill EARN (work study) and Part-Time awards flat Senate version No funding for Minority Teacher Scholarship No funding for Nursing program No language or funding for Stipends Creates loan forgiveness for physicians in rural areas (administered by the Department of Health)

Next Steps 1348 Implementation meeting – May 8, 2013 4/12/2017 Next Steps 1348 Implementation meeting – May 8, 2013 Student-based model Redesign of xGRADS Stipends outreach – if passed Contacts with Schools of Education K-12 School Business Officials

2013-2014 Awards May 9 – next “edit notification” e-mail 4/12/2017 2013-2014 Awards May 9 – next “edit notification” e-mail Tuition survey Will be sending out week of April 29 Needs to be returned by May 31 Commission meeting set for June 13, 2013 SFA Award calculations begin June 14, 2013 Student notification begins July 1, 2013

National Guard / CVO Funding increases for both in HB 1001 4/12/2017 National Guard / CVO Funding increases for both in HB 1001 NG - $3.6M (2014) and $3.7M (2015) CVO - $27.2M (2014) and $28.7M (2015) Awaiting federal guidance on CVO

Associate Commissioner 4/12/2017 Questions? Mary Jane Michalak Associate Commissioner 317.234.5664 mjmichalak@che.in.gov