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 National Science and Mathematics Access to Retain Talent (National SMART) Grant Academic Competitiveness Grant (ACG)

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 and beyond, until changed –Comments received through August 17, 2006 Final regulations published November 1, 2006 governing with optional early implementation for Negotiated Rulemaking to begin this fall; regulations produced will likely cover 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: $ 790 million $ 850 million $ 920 million $ 960 million $ 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

7 Similarities – Both Programs Student Eligibility U.S. Citizen Only -- Eligible Non-Citizens are not eligible for ACG and National SMART Grants Federal Pell Grant Recipient During Same Payment Period (or in Same Award Year) Full-time Enrollment Only for Payment Period Enrolled in Degree Program Progression by Student Academic Year (Title IV definition) Only One Full Scheduled Award for Each Academic Year

8 Distinctions – Both Programs ACGNational SMART 1 st & 2nd academic years of a 2- year or 4-year degree program 3 rd & 4 th academic years of a 4- year degree program Requires completion of rigorous secondary school program of study Requires student to be in a designated major 1 st Academic Year - $ nd Academic Year- $1,300 3 rd Academic Year - $4,000 4 th Academic Year - $4,000 GPA of at least 3.0 as of the end of 1 st academic year only GPA of at least 3.0 as of the beginning of each payment period Note: There are second year ACG and third and fourth year National SMART Grants available for

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 ) 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, nd 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 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-Identification SAR and ISIR Comments Comment Code SAR Comment 267Explains 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 270For students who selected coursework completion 271Advises student that their Financial Aid Administrator will determine their eligibility

16 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 or school year –State Scholars Initiative

17 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

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 1 st 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 Grants Eligibility 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 ) 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 National SMART Grants 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 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 Programs Determining 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 Programs Duration 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 Programs Disbursements 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 Programs Disbursements 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 Programs Transfer 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 Programs 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 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 Programs 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; 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 Programs Academic 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 Programs Academic 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 Programs Academic 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 Programs Academic 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 Programs Academic 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 Programs Academic 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 Programs 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

48 Both Programs Academic Year – Weeks of Instructional Time To determine weeks of instructional time in academic year progression for the two grant programs for and : –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 Programs Academic 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 Year C redits 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.

51 Both Programs Remedial Coursework Within the regular Title IV limitations, remedial coursework applies toward enrollment status (i.e., full-time for these grant programs) The grades earned in remedial courses would only count in the ACG/SMART GPA calculation if they would be included under the school’s academic policies

52 Both Programs Availability of Funds Initial authorizations in GAPS and COD with Electronic Statements of Account (ESOA) on July 29, –Like Pell or Direct Loans (not like campus-based) –No institutional allocation First draw downs from GAPS available first week of August 2006 Schools will receive separate authorization for each program See session # 17 for more detailed information on reporting issues

53 Further Training HERA Training – Fall 2006 – In-person Training – More than 50 sites across country – Offered September – December, 2006 – See Training Announcement on IFAP

55 STILL HAVE QUESTIONS? Frequently Asked Questions for ACG/SMART found on left-hand side of IFAP’s HERA page at: HERAPag.jsp?p1=c Or you can your question to

56 Contact Information For questions or to provide feedback: Anthony Jones David Bergeron

Session 05 ACG and National SMART Grant: Student Eligibility & Academic Year Issues Presentation supplement containing examples for determining academic year progression and financial need

58 Example 1: Advanced Placement courses Student graduated high school May Enrolls at School A for Fall 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. If School A assumes weeks of instructional time, this student would be in his/her second academic year. 45/24 = 1.875

59 Example 1: AP courses (cont’d) 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 still be in his/her first academic year since no weeks of instructional time are associated with AP credits. This student would be eligible for first year ACG award assuming all other eligibility criteria are met.

60 Example 2: Academic Year Student completes 36 credit hours at School X and has 3.50 GPA. Student transfers to School Y. School Y accepts only 24 hours upon transfer. School Y is only required to use credit hours that transfer in determining academic year (hours and weeks), but the school may look at transcript (i.e., all 36) to determine weeks of instructional time completed. School Y chooses to use only the hours accepted to determine weeks. Therefore, School Y must use GPA for 24 hours transferred in to determine if student eligible for 2 nd year ACG award.

61 Example 3: Academic Year Student enrolls at School A for award year. Student completes 24 semester hours over three terms (part-time enrollment) and receives no ACG. Student transfers to School B for award year. School B only accepts 18 semester hours of the courses taken at School A. School B defines its academic year as 24 semester hours and 30 weeks of instructional time. School B chooses to assume weeks of instructional time instead of tracking actual weeks.

62 Example 3: Academic Year (cont’d) School B determines student has completed 18 credit hours and instead of tracking actual weeks of instructional time assumes 75% of academic year’s weeks (18/24) completed. Student is still in first academic year at School B. –Year 1 is 0-24 hours and 30 weeks, Year 2 is hours and weeks … School B awards half of ACG award ($375) for Fall 2007

63 Example 3: Academic Year (cont’d) Student completes 15 hours in Fall 2007 and now has completed 33 semester hours. Student has cumulative GPA of 3.25 on the 15 hours earned at School B. School B assumes weeks, which means student has completed academic years (33/24). Student has completed year 1 and is in academic year 2. For Spring 2008, school may award half of second year ACG ($650). Student received total of $1,025 in ACG funds for

64 Example 4: Academic Year Same student as in ‘Academic Year: Example 3’. Student enrolls at School A for award year. Student completes 24 semester hours over three terms (part-time enrollment) and receives no ACG. Student transfers to School B for award year. School B only accepts 18 semester hours of the courses taken at School A. School B defines its academic year as 24 semester hours and 30 weeks of instructional time.

65 Example 4: Academic Year (cont’d) School B determines student has completed 18 credit hours and has policy to track actual weeks of instructional time. School B may look at transcript and determine that student has completed the weeks in a full academic year, because student completed two semesters at School A, but will only have 18 hours “completed” at School B.

66 Example 4: Academic Year (cont’d) Note: ED guidance allows School B to assume weeks of instructional time for credits transferred in and then track actual weeks of instructional time from that point on. If a student requests that all weeks of instructional time be tracked rather than assumed, a school must review the student’s academic history to determine the actual weeks.

67 Example 4: Academic Year (cont’d) For the first semester (Fall 2007) at School B, the student can be awarded $375 in ACG funds. Student completes 15 hours in Fall 2007 and has a cumulative GPA of This GPA represents only the 15 hours taken in Fall –If school policy is to include GPA for courses transferred in, then the cumulative GPA at the end of Fall 2007 would also include the GPA for those courses. At the end of Fall 2007, the student will have completed the weeks for 1 ½ academic years and have 33 hours. The school may award $650 in ACG funds for Spring 2008.

68 Example 5: Academic Year At School C, student completes 12 credit hours. Student was only enrolled full-time one semester and received only one disbursement ($375) of ACG funds. Student transfers to School D and none of the 12 credits transfer. School D assumes weeks of instructional time. With zero hours, School D reviews NSLDS and notes the student has already been awarded ACG funds (which serves as documentation of completion of rigorous secondary school program of study). School D awards this student $375 ACG award.

69 Example 5: Academic Year (cont’d) Student completes 14 credit hours in Fall. Although student is still in first academic year at School D, there are no remaining ACG funds for Spring. –With no transfer hours, no weeks of instructional time were assumed. Even if School D chose to track actual weeks, this student would have completed the weeks of instructional time for an academic year but still not have the credit hours. –Student must meet both measures before funds can be awarded for next academic year.

70 Example 6: Academic Year Progression Student graduates high school and enrolls at school that tracks actual weeks of instructional time. Fall 2006: 15 hours, 15 weeks –Awarded ½ of 1 st academic year ACG –Ends term with 15 hours and 3.66 GPA Spring 2007: 18 hours, 15 weeks –Awarded ½ of 1 st academic year ACG –Ends term with 33 hours and 3.58 GPA Summer 2007: 9 hours, 15 weeks* –Receives no ACG (less than full-time) –Ends term with 42 hours and 3.63 GPA *Certain programs allowed to treat summer term as 15 weeks

71 Example 6: Academic Year Progression (cont’d) Fall 2007: 18 hours, 15 weeks –Awarded ½ of 2 nd academic year ACG –Ends term with 60 hours and 3.67 GPA Spring 2008: 18 hours, 15 weeks –Awarded ½ of 3 rd academic year Nat’l SMART Grant (beyond 2 nd yr in wks & hrs; SMART-eligible major declared) –Ends term with 78 hours and 3.72 GPA Summer 2008: 9 hours, 15 weeks* –Receives no Nat’l SMART Grant (less than full-time) –Ends term with 87 hours and 3.69 GPA *Certain programs allowed to treat summer term as 15 weeks

72 Example 6: Academic Year Progression (cont’d) Fall 2008: 15 hours, 15 weeks –Awarded ½ of 4 th academic year Nat’l SMART Grant –Ends term with 102 hours and 3.67 GPA Spring 2009: 18 hours, 15 weeks –Awarded ½ of 4 th academic year Nat’l SMART Grant –Ends term with 120 hours and 3.64 GPA Total ACG received: $1,400 Total National SMART Grant received: $6,000

73 Example 7: Academic Year Progression Student graduates high school and enrolls at school that assumes weeks of instructional time based on credits. Fall 2006: 15 hours, 15 actual weeks –Awarded ½ of 1 st academic year ACG –Ends term with 15 hours and 3.66 GPA (assumes ac.yrs.) Spring 2007: 18 hours, 15 actual weeks –Awarded ½ of 1 st academic year ACG –Ends term with 33 hours and 3.58 GPA (assumes ac.yrs.) Summer 2007: 9 hours, 15 weeks* –Receives no ACG (less than full-time) –Ends term with 42 hours and 3.63 GPA (assumes 1.75 ac.yrs.) *Certain programs allowed to treat summer term as 15 weeks

74 Example 7: Academic Year Progression (cont’d) Fall 2007: 18 hours, 15 weeks –Awarded ½ of 2 nd academic year ACG –Ends term with 60 hours and 3.67 GPA (assumes 2.5 ac.yrs.) Spring 2008: 18 hours, 15 weeks –Awarded ½ of 3 rd academic year Nat’l SMART Grant because eligible major declared –Ends term with 78 hours and 3.72 GPA (assumes 3.25 ac.yrs.) Summer 2008: 9 hours, 15 weeks * –Receives no Nat’l SMART Grant (less than full-time) –Ends term with 87 hours and 3.69 GPA (assumes ac.yrs.)

75 Example 7: Academic Year Progression (cont’d) Fall 2008: 15 hours, 15 weeks –Awarded ½ of 4 th academic year Nat’l SMART Grant –Ends term with 102 hours and 3.67 GPA (assumes 4.25 ac.yrs.) Spring 2009: 18 hours, 15 weeks –Awarded ½ of 4 th academic year Nat’l SMART Grant –Ends term with 120 hours and 3.64 GPA (graduates) Total ACG received: $1,400 Total National SMART Grant received: $6,000

76 Example 8: Change in Academic Year Student completes 49 semester hours at School A over three award years then transfers to School B. School B reviews NSLDS and sees that the student received a full scheduled award for ACG for the award year for academic year 2. School B only accepts 22 semester hours as applicable toward a degree at its institution. Student is not eligible for academic year 1 ACG because history shows year 2 already received.

77 Example 9: Financial Need Student Profile COA: $19,500 EFC: 0 Need:$19,500 Original Determinations Merit Scholarship $15,000 Federal Pell Grant$ 4,050 ACG:$ 750 Packaging Options Merit Scholarship:$14,700 Federal Pell Grant:$ 4,050 ACG:$ OR-- Merit Scholarship:$15,000 Federal Pell Grant:$ 4,050 ACG:$ 450

78 Example 10: Financial Need Student Profile COA: $25,500 EFC: 0 Need:$25,500 Original Determinations Veterans Benefits $21,970 Federal Pell Grant$ 4,050 ACG:$ 750 Packaging Options Veterans Benefits $21,970 Federal Pell Grant:$ 4,050 ACG:$ 0 Student cannot receive any ACG funds because need has already been met. No overaward for Pell and VA only.

79 Contact Information For questions or to provide feedback: Anthony Jones David Bergeron