1. Frank O’Bannon and 21st Century Scholars Completion Requirements
Indiana Commission for Higher Education Division of Student Financial Aid March 14, 2014

2. Introduction
This presentation will briefly review the reasons for the reforms, give an overview of the new requirements, and answer some frequently asked questions about state financial aid.
Memoranda issued about these changes are available at
Full text of the statute is available at articles/012/.

3. Focus on Four Years
Most bachelor degree programs require students to graduate with 120 credits at semester colleges and 180 credits at quarter schools.
To graduate in four years, students should earn 30 credits per year at a semester college, or 45 credits at quarter schools.
In Indiana, students can receive state financial aid for four years.

4. Focus on Four Years
In 2013, 75% of state financial aid recipients expected to graduate in four years, but…….
Only 53% were taking the necessary credits to do so.
Only 30% of Frank O’Bannon recipients graduate with a bachelor’s degree within four years
Only 20.4% same degree, same campus
Only 26% of 21st Century Scholars graduate with a bachelor’s degree within four years
Only 14.5% same degree, same campus

5. Cost of a Fifth Year – and Debt
A fifth year of college can cost an average of $50,000 in tuition, fees, lost wages, and other associated costs.
73% of aid recipients say they will take more debt to finance their fifth year once aid runs out
13% say they will not finish their degree if aid runs out (worst case scenario: debt and no degree!)
Average debt of an Indiana college graduate is $27,000.

6. Financial Aid Reform
Beginning in , students receiving state financial aid must successfully complete classes to renew state financial aid awards.
All O’Bannon student awards will be determined using EFC, even for dependent students.
All O’Bannon student awards will be determined using the new Financial Aid menu, a.k.a “The Grid”

7. Purpose of the new requirements
Increase college completion rates for students receiving state financial aid
Reduce the total cost of college for students
Graduating in four years means students pay less for a degree, incur less debt, and get into the workforce sooner.
Increase the State’s return on investment
Make state award creation more transparent

8. Who do the new requirements affect?
Students who receive a Frank O’Bannon or 21st Century Scholars Award and who first receive state financial aid during the academic year or after;
If students received their first state financial aid award prior to academic year , these completion requirements do not affect their state financial aid eligibility.

9. Completion Requirements Frank O’Bannon Program
Complete a minimum of 24 credit hours (or the equivalent) by the end of the first year the student receives financial aid
Complete a minimum of 48 credit hours (or the equivalent) by the end of the second year the student receives financial aid
Complete a minimum of 72 credit hours (or the equivalent) by the end of the third year the student receives financial aid

10. Frank O’Bannon Award Incentives
Students will receive more money if they…..
Complete 30 credit hours or more each year (“on-time” award)
Earn an academic honors or technical honors diploma in high school (Incentive in Year 1 of financial aid only)
Earn a cumulative GPA of a 3.0 on a 4.0 scale (Incentive available in Years 2, 3, and 4 of financial aid only)
Earn an associate degree before enrolling in a bachelor’s degree program
Complete 39 credit hours or more each year (accelerated incentive)
More information provided on “Academic Honors” and “Associate Degree” incentives on later slides
AP and dual credit courses earned in high school count towards the student’s credit completion requirements.
Point out that the tiered GPA policy mentioned last year no longer applies and has been replaced with SAP.

11. Completion Requirements 21st Century Scholars Program
Complete a minimum of 30 credit hours (or the equivalent) by the end of the first year the student receives financial aid
Complete a minimum of 60 credit hours (or the equivalent) by the end of the second year the student receives financial aid
Complete a minimum of 90 credit hours (or the equivalent) by the end of the third year the student receive financial aid

12. Completion Requirements 21st Century Scholars Program
If Scholars complete less than the required credit hours, they may be eligible to receive an O’Bannon award.
The Scholars’ O’Bannon award will be based on their EFC.

13. Key points to remember
The new Grid for annual awards only applies to students receiving an O’Bannon award.
21st Century Scholars are not eligible to receive the same incentives as O’Bannon students.
O’Bannon students not subject to completion standards are grandfathered, but still on the Grid for the base award

14. Grandfathered Students
Students not subject to completion standards:
Receive On-Time award based on their EFC and corresponding school in the Grid
Receive grandfathered Academic Honors amounts
$700 for proprietary schools or Ivy Tech
$800 for public schools
$1,400 for private schools
Receive grandfathered Associate Degree awards (same as Academic Honors amounts)
Can receive Academic Honors OR Associate Degree award, but not both. (IC )

15. Frank O’Bannon Students
The following seven (7) slides apply only to the Frank O’Bannon program.
We will review examples from public, private and proprietary schools.

16. When did the student receive his or her first state financial aid award?
: The student must meet the completion requirements to renew his or her award.
Student will receive either:
Full-time award (at least 24 credits or the equivalent)
On-time award (at least 30 credits or the equivalent)
or before: The student is not subject to the completion requirements.
Student will receive the on-time award.

17. Using the Grid – Base Awards
Use Initial Awards
Incoming first-year students
Students who have never received a state financial aid award before
Use Renewal Awards
Students who received their first state financial aid awards in (On-Time or Full-Time)
Students who received their first state financial aid award in or before (On-Time)

18. Using the Grid - Incentives
For students who received their first state financial aid award in or after.
Do not use menu incentives for students who received their first state financial aid award in or before.
These students are grandfathered to receive the amounts they had previously received for their Academic Honors Diploma or Associate Degree (see slide 14)

19. $0 Base Awards
The columns with a “$0” are the EFC levels in which a student with a $0 base award may still receive an incentive.
Any EFC not on the grid or any place where the base award says “not eligible for aid” means that the a student with that EFC is not eligible for either a base award OR an incentive.
Students with EFCs above $4,000 attending a public school will not be eligible for any award or any incentive.
Students with EFCs above $7,500 attending a private school will not be eligible for any award or any incentive.
Students with EFCs above $3,500 attending Ivy Tech or a proprietary school will not be eligible for any award or any incentive.

20. Example 1
Student who received first state financial aid award in , EFC of $2000, Academic Honors Diploma
Student is not subject to completion requirements because first state financial aid award was prior to
Student is grandfathered in to receive the On-Time Award amount
Student is grandfathered in to receive past Academic Honors amounts
Award:
Public: $1,500 (base) + $800 (Academic Honors ) = $2,300
Private: $5,200 (base) + $1400 (Academic Honors) = $6,600
Ivy Tech / Proprietary: $800 (base) + $700 (Academic Honors) = $1,500

21. Example 2
Student who received first state financial aid award in , EFC of $3000, Academic Honors Diploma
Student is not subject to completion requirements because first state financial aid award was prior to
Student is grandfathered in to receive the On-Time Award amount
Student is grandfathered in to receive past Academic Honors amounts
Award:
Public: $0(base) + $800 (Academic Honors ) = $800
Private: $4,000 (base) + $1400 (Academic Honors) = $5,400
Ivy Tech / Proprietary: $0 (base) + $700 (Academic Honors) = $700

22. Example 3
Received first state financial aid award in , EFC of $1000, Academic Honors Diploma, 2.0 GPA, 29 credits
Student is subject to completion requirements because first state financial aid award was in
Student will not receive Academic Honors incentive because the student is in his second year and did not achieve a 3.0 or higher GPA
Student will receive the full-time award because he completed at least 24 credit hours but not 30 credit hours.
Award:
Public: $2,400 (base)
Private: $5,800 (base)
Ivy Tech / Proprietary: $1,800 (base)

23. Example 4
John received first state financial aid award in , $0 EFC, Core 40 Diploma, 3.0 GPA, completed Associate Degree and now entering BS program
NOT subject to completion requirements because first state financial aid award was in before
Grandfathered in and will receive On-Time Award
No Academic Honors incentive
Grandfathered Associate Degree bump according to school type
Award
Public: $3,700 (base) + $800 (Grandfathered Associate Degree)
Private: $7,400 (base) + $1,400 (Grandfathered Associate Degree)
Ivy Tech / Proprietary: $3,100 (base) + $700 (Grandfathered AD)

24. Example 5
Tom is entering third year of school, but will be his first year of aid. $0 EFC, Core 40 Diploma, 3.0 GPA, completed Associate Degree and now entering BS program
Subject to completion requirements in future
Packaged with Initial Year award corresponding with school type
No Academic Honors incentive in Year 1 of financial aid, but could receive next year if GPA remains stable
Associate Degree incentive from menu
Award
Public: $3,700 (base) + $800 (Associate Degree)
Private: $7,400 (base) + $800 (Associate Degree)
Ivy Tech / Proprietary: $3,100 (base) + $800 (Associate Degree)

25. Example 6
George is entering his third year of school, but will be his first year of aid. $0 EFC, Academic Honors Diploma (2001 high school graduate), 2.75 GPA, completed Associate Degree and now entering BS program
Subject to completion requirements in future
Packaged with Initial Year award corresponding with school type
Academic Honors incentive in Year 1 because of Diploma
Associate Degree incentive from menu
Award
Public: $3,700 (base) + $800 (Academic Honors) +$800 (Associate Degree)
Private: $7,400 (base) + $800 (Academic Honors) + $800 (Associate Degree)
Ivy Tech / Proprietary: $3,100 (base) + $800 (Academic Honors) +$800 (Associate Degree)

26. 21st Century Scholars
The following five (5) slides apply only to the students in the 21st Century Scholars program.
We will review examples from public, private and proprietary schools.

27. Scholar Opt Out/Opt In
It will be important for students to understand that if that he/she opts out of the 21st Century Scholars program and chooses the O’Bannon award with incentives for this year, that student will only be eligible for the 21st Century Scholars award again if the student meets the credit completion requirements for the 21st Century Scholars program.

28. Scholar Opt Out/Opt In
If you have a student choosing to do this or your institution were to make it a policy to encourage students to opt out of the 21st program, CHE strongly suggests that students sign a waiver signifying they understand the ramifications their decision will make on any possible future awards.

29. Scholar Example 1
: Sam has a zero EFC and an academic honors diploma. Based on this, Sam elects to take $7400 base O'Bannon + $800 Academic Honors. Sam has opted out of the Scholar’s program : In , Sam earned 39 credit hours and has a 3.1 GPA. His EFC is still $0. Based on this, Sam again elects O'Bannon of $ $800 + $1300. Sam has not opted back into the Scholar’s program : By the end of , Sam has earned 69 hours and still has a 3.1 GPA. However, his EFC has gone up to $4000. Sam still meets the eligibility requirements of the Scholars program (has completed 60 credits by the end of Year 2), so Sam can opt back into the Scholars program and receive the Scholars Award of $7,570 (assuming no change in value) instead of the $2,900 + $800 O’Bannon Award.

30. Scholar Example 2
: Sam has a zero EFC and an academic honors diploma. Based on this, Sam elects to take $7400 base O'Bannon + $800 Academic Honors. Sam has opted out of the Scholar’s program : In , Sam earned 39 credit hours and has a 3.1 GPA. His EFC is still $0. Based on this, Sam again elects O'Bannon of $ $800 + $1300. Sam has not opted back into the Scholar’s program : By the end of , Sam has earned 59 hours and still has a 3.1 GPA. However, his EFC has gone up to $4000. Sam no longer meets the eligibility requirements of the Scholars program (has not completed 60 credits by the end of Year 2), so Sam cannot opt back into the Scholars program. He will receive the O’Bannon Award of $2900 (base) (incentive) rather than the Scholars Award of $7570 (assuming no change in value).

31. Scholar Example 3
Scholar received first state financial aid award in , EFC of $3000, Academic Honors Diploma
Student is not subject to completion requirements because first state financial aid award was prior to
Student is Scholar so he receives the Scholars Award
Student is Scholar so there is no bonus for Academic Honors
Award:
Public: Full tuition and Fees
Private: $7,570
Ivy Tech / Proprietary: $3,904

32. File Layouts New file layouts will be done within two weeks.
NOTF – out week of March 17
Credit completion/GPA – out week of March 17
RECN – out week of March 24
Incentive awards will be separated from the base award on the NOTF and RECN files.
Each type of incentive will need to be accounted for separately.

33. CHE – Institution Data Exchange
By the end of May, schools that can should submit a file to SFA with the list of students who attended institutions and received the Frank O’Bannon and 21st Century scholarship during
SFA will provide file layout (credit completion/GPA file)
List should include students information, cumulative GPA, credit earned over academic year.
SFA will collect data elements from institution partners at the end of each school’s academic term.

34. CHE – Institution Data Exchange
SFA will create awards in June based on FAFSAs and the credit/GPA information collected
SFA will provide schools with the NOTF files that include students offered awards.
Schools that did not have GPA and completion data for some students should submit an updated Completion file before they claim awards .

35. Data Elements Needed Enrollment date
Use of state awards “start date” (will be based on first reconciliation)
SAP information
AP and dual credits accepted by institutions
Cumulative GPA
Credits earned during the last attended term (not cumulative)

36. Reconciliation
Beginning with , will have “rolling reconciliation” cycle
One final deadline in June, prior to the State’s fiscal year end June 30.
SFA will continue to provide “up-front” allocations at a reduced schedule starting with

37. Spring 2014 Starts
Students who first started in Spring 2014 and received their first state financial aid award in Spring 2014 will be special circumstances because of the transition from the old system to the new system.
These students will have their awards adjusted to put them on an “annual award” track.
The student’s first “annual award” will be the spring SFA award offer, which is still calculated as a term-based award.
The student’s 12-month clock will begin during the term that award is reconciled. (Spring 2014).
Schools should claim this award the same as it has been claimed in the past.
The unused fall SFA award offer will be converted to the second half of the students first “annual award”. This second half of the award will be calculated at half the annual award amount and be based on the award offer calculated from the FAFSA.
In other words, their spring award will be doubled to reflect what the fall award would have been.

38. Spring 2014 Starts
For all students who receive their first state award in spring 2014, you will be able to see and reconcile the first part of this award during the spring 2014 term.
The second part of this award can be claimed after AY annual awards are calculated.
This aligns the student's annual award with his 12-month window for credit completion.
NOTE: In subsequent years, a student could have two awards calculated due to the overlap of academic years. For example, a student who begins classes in January 2015 may have an award calculated for from the FAFSA and from the FAFSA.

39. Summer Aid
21st Century Scholars, Frank O’Bannon (HEA and FOC) and National Guard Supplemental Grant (NGSG) recipients - institutions may claim their full award for spring and hold over any remaining funds after spring costs are paid for summer.
Students will only be able to use fund balances at the school they utilize state aid at during the spring term.
We will be issuing a separate Summer Aid memo for clarification.
If you have already reconciled spring O’Bannon, 21st or NGSG funds, did not claim the full spring award (student was taking less than 15 credit hours), the student will be attending summer school at your institution and state aid can be applied to their summer cost, please follow these steps in order to have the full spring award reinstated so that it can be reconciled:
1) Notify SFA via at by March 21, 2014 that your institution is planning to refund previously reconciled spring 2014 awards (O’Bannon, 21st, NSGS);
2) Submit spring refunds via xGrads or RECN file to SFA for the full award amount that was reconciled and paid;
3) Allow 7-10 business days for SFA to process the refund and create a new spring 2014 award for the full award offer;
4) Wait for notification from SFA that your institution’s refunds have been processed and new award have been created;
Reconcile the full award and hold the balance not used for spring to be applied to the student’s summer costs.
If the student is not attending summer classes at your institution and you have already claimed a state aid award that matches the number of spring credit hours they are enrolled in you do not need to submit a refund.
Students with aid remaining after spring cost have been paid at your school will be unable to use that balance at another SFA eligible institution they may attend during the summer 2014 term.

40. Summer Aid
Students need to work directly with their college or university’s financial aid office.
The annual award amount stays the same – the way it is divided changes.
Each school will set up its own steps that students must follow to have some of their state aid applied during the summer term.
It’s also important to remember that if students defer some of the state award money for use in the summer, the award amounts for the fall or spring term will be smaller.

41. Transfer Hours
SFA will provide the following information to all schools:
Period during which the student received their first state award (to grandfather students not effected by the 30 credit hour requirement),
What 12 month academic period student is in for purposes of counting credit hours (i.e. Aug to Aug, Jan to Jan)
How many years left on 4 year limit (using units?)
Schools will submit credit completion information at the end of each term, and GRADS will be the repository of this information.
Transfer credits from a non-eligible institution should be submitted by the new/hosting school to CHE upon claiming of award.

42. Frequently Asked Questions
Question: Do students need to be enrolled full-time in the summer to receive state aid? Answer: No. Students who work with their financial aid office to defer some of their state award do not have to be enrolled full-time during the summer term. However, during the fall and spring terms students must be enrolled in at least 12 credit hours (or the equivalent) to receive the Frank O’Bannon or 21st Century Scholarship awards.

43. Frequently Asked Questions
Question: For the purposes of credit completion, when does the academic year start and end? Answer: The academic year begins with the first semester a student enrolls in college and begins using state financial aid. For example, students initially enrolling during the fall term and using their first state financial aid award have through the end of the following summer to complete the minimum number of credits, while students initially enrolling and using their first award in the spring have the through the end of the following fall to complete the credit minimums.

44. Frequently Asked Questions
Question: Do students have to take classes at their home institutions for the credits to count toward the completion requirement? Answer: No. Classes taken at another institution may count toward the completion requirement, but students should work closely with their home institution to make sure that any classes taken at another institution transfer back with them.

45. Frequently Asked Questions
Question: Will grandfathered students that have received the Associates Degree add-on in the past be eligible for the Associates Degree’s incentive in and moving forward? If so, will grandfathered AS degree incentives follow the old rules? Answer: Yes. Students who are grandfathered in are still eligible to receive the Associate Degree award they received in the past. The amount mirrors the amounts for the grandfathered Academic Honors or Technical Honors awards ($700/$800/$1400). NOTE: Grandfathered students are only eligible for the Academic Honors OR the Associate Degree bump, not both. ( )

46. Frequently Asked Questions
Question: Why were the CVO aggregate hours added to the APPL file? Will they be also be added to the FRPD file? Answer: These hours were added per request by institutions.

47. Frequently Asked Questions
Question: On the grid handout, under the “Add An Item” section, it states that a 2nd, 3rd, or 4th year student would need to earn a 3.0 cumulative GPA in the previous award year. Is the cumulative GPA is restricted to the previous award year or is it a true cumulative GPA for the student’s overall career? Answer: It is a true cumulative GPA for the student’s overall career, as of the end of the previous year. We have clarified this on the Grid and sent an updated version for use.

48. Frequently Asked Questions
Question: If a student attends a private school during his first term and a public school during his second term, how will the Annual Award be calculated? Answer: The student’s initial award will be created based on annual award for the private school. If student then switches to a public school, a new award (using public schools grid amount) will be created based on the percent of the award still remaining. If the student used 50% of his award at the private school during the first term, the student has 50% remaining of annual award at the public school amount for the second term.

49. Frequently Asked Questions
Question: What if a grandfathered student (received aid prior to/during Fall 2013) did not have the Academic Honors flag but earns a 3.0+ GPA during his first year of college? Would he be eligible for the Academic Honors incentive during his second year? Basically, can any student (grandfathered or not as long as they are a second, third, or fourth year) receive the Academic Honors incentive by earning the 3.0 cumulative. Answer: Because the student is grandfathered, he can only receive the Academic Honors incentive by having an Academic Honors flag. A student who is grandfathered is not eligible for the incentives on the Grid.

50. Frequently Asked Questions
Question: How will transfer hours reporting be handled?
Answer: SFA will provide the following information to all schools:
Date of first award (will assist schools in determining if the student was grandfathered or not)
What 12 month academic period student is in for purposes of counting credit hours (i.e. Aug to Aug, Jan to Jan)
How many years left on four year limit
The number of credits earned up to point of transfer
This will show schools whether students are On-Time or Full-Time
Schools will submit credit completion information at the end of each term, and GRADS will be the repository of this information.

51. Frequently Asked Questions
Question: Why don’t 21st Century Scholars receive the same incentives for an academic honors diploma, accelerated credit completion, or pursuing a bachelor’s degree after obtaining an associate degree like O’Bannon recipients? Answer: The base O’Bannon award covers only a small portion of tuition and mandatory fees for students, in contrast to the 21st Century Scholars program, which provides 100 percent of tuition and mandatory fees at public institutions. The incentives allow students receiving the O’Bannon Award to receive more financial aid in exchange for increased levels of performance.

52. Frequently Asked Questions
Question: Can a Scholar receive an incentive for Academic Honors, Associate Degree or Accelerated credits? Answer: A Scholar can only receive incentives if the Scholar opts out of the Scholar program. Question: Will a Scholar be able to elect to utilize the O'Bannon Grant and incentives in a given year if that award total would be higher than their 21st century award at a private institution? Answer: Yes, if they opt out of the Scholar program.

53. Frequently Asked Questions
Question: Are students who received State aid prior to 2013 eligible for the accelerated award add on? Answer: No. Students who are not subject to the completion requirements are not eligible for incentives other than the Academic Honors / Technical Honors Diploma incentive. In this case, they are grandfathered in and will receive awards for two more years at the same level as they received during their first two years. ($700/ $800/ $1400)

54. Frequently Asked Questions
Question: Does the Commission have an appeal process in place for students that may fall short of the credit hour requirement due to special circumstances? Answer: Yes. Statute provides an appeal process. (See page 12 of August 21, 2013 memo.)
IC establishes an appeals process for students unable to meet the renewal requirements for the Frank O’Bannon program. The Commission will determine if “extenuating circumstances” existed that prevented the student from meeting the completion requirements.
IC establishes an appeals process for students unable to meet the renewal requirements for the 21st Century Scholars Program. The Commission will determine if “extenuating circumstances” existed that prevented the student from meeting the completion requirements.
The Commission must establish “extenuating circumstances,” which may include one or more of the following: medical emergency, deployment, certain foster care situations, certain students with disabilities, domestic violence, homelessness, death in the family. These are some of the examples we have been given from financial aid representatives. These will be determined on a case-by-case basis.
We will not consider ANY appeal that does not include documentation of extenuating circumstances.
In the first year, appeals will be handled manually. Students will likely be required to file a paper appeal.

55. Frequently Asked Questions
Question: Do AP and dual credit classes in high school count toward credit completion? Answer: Yes. If a student receives AP credit or takes dual credit classes in high school and earns credit toward a college course for that AP/dual course, those credits should be counted toward the completion requirement for determining state financial aid. The student must still enroll in a minimum of 12 credit hours to be eligible for the award. The initial accepting school should report the total accepted AP/dual credits for this student.

56. Frequently Asked Questions
Question: On the menu it says, “Students with financial need may earn student performance incentives even if his or her base award is $0.” Does this refer only to the EFC ranges with a $0 value on the grid or the more general definition of financial need? Answer: The areas where there are a “$0” are the areas where a student with a $0 base award may still receive an incentive. Any EFC not on the grid or any place where the base award says “not eligible for aid” means that the a student with that EFC is not eligible for a base award OR an incentive. Students attending a private school with EFCs above $7,500 will not be eligible for any award or any incentive.

57. Frequently Asked Questions
Question: What if the student received part of their award at another school, do we make an assumption that they were meeting the credit hour requirement, or will we have to collect transcripts? Answer: GRADS will have information on whether an award has been claimed or not. However, you may need verify what credits the student has if the credit information was not provided. The idea is that schools will be submitting credit completion information at the end of each term, and GRADS will be the repository of this information.

58. Contact Us
Division of Student Financial Aid – Awards P: F: E: or W: