1. Academic Competitiveness Grant and National SMART Grant General Session Overview David Bergeron Jeff Baker Kay Jacks

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

3. Other Sessions Session # 5 - ACG and National SMART Grant –Student Eligibility and Academic Year Issues Session # 6 - ACG and National SMART Grant –Transfer Student, Secondary School Program of Academic Rigor, and Academic Major Issues. Session # 17 - ACG and National SMART Grant –Reporting from CPS to COD. General Session - Federal Update (Friday)

4. Authorization and Funding Funding for these programs is not subject to the annual appropriations process: –2006-07 -- $790 million –2007-08 -- $850 million –2008-09 -- $920 million –2009-10 -- $960 million –2010-11 -- $1.01 billion

5. Rules and Regulations Interim Final Regulations for the 2006-2007 award year published on July 3, 2006 –Invitation to comment through August 17, 2006 for possible changes for the 2007-2008 award year –Received 80 comments Final Regulations for the 2007-2008 award year published on November 1, 2006 –Institutions may implement changes made in the final regulation for the 2006-2007 award year

6. Rules and Regulations One Significant Change: –July 3 interim final rule required student to have received a Pell Grant in the same payment period (e.g., term) to receive an ACG or National SMART Grant –November 1 final rule requires student to have received a Pell Grant sometime in the same award year to receive an ACG or National SMART Grant

7. Rules and Regulations Tentative Calendar –Sessions: December 2006, February and March 2007 – NPRM: May 2007 –Comments: July 2007 – Final Rule: November 1, 2007 –Effective Date: July 1, 2008 with possible early implementation Negotiated Rulemaking for the 2008-2009 Award Year and Beyond

8. Institutional Responsibilities Institutions are responsible for implementing the new programs within the guidance provided The Secretary recognizes that institutions will face significant challenges in implementing the programs with virtually no lead time for the 2006- 2007 award year These facts will be considered during reviews of an institution’s implementation of the programs

9. Basic Program Requirements

10. Programs Are Similar in Some Ways Student Eligibility U.S. Citizen Only – Eligible Non-Citizens Do Not Qualify Pell Grant Recipient During Same Award Year Full-time Enrollment for Payment Period Enrolled in Degree Program Progression by Student Academic Year Only One Scheduled Award for Each Academic Year

11. Separate and Distinct Programs ACGNational SMART 1 st & 2 nd academic years of a two or four-year degree program 3 rd & 4 th academic years of a four-year degree program Requires completion of rigorous secondary school program of study Requires student to be in a designated major 1 st Academic Year - $ 750 2 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 at each disbursement

12. Duration of Student Eligibility For ACG, students are restricted to: –one grant for the student’s first academic year and –one grant for the student’s second academic year For National SMART Grant, students are restricted to: –one grant for each of the student’s third and fourth academic years

13. Academic Competitiveness Grant (ACG)

14. ACG Eligibility Requirements 1 st -year students –Have completed a rigorous secondary school program of study after January 1, 2006 –May not have been previously enrolled while in high school as a regular student in an ACG eligible program 2 nd -year students –Have completed a rigorous secondary school program of study after January 1, 2005 –Have a 3.0 or higher GPA at the end of 1st year

15. Previous Enrollment Restriction for 1 st - Year ACG While in High School Not eligible if enrolled as a “regular student” in an ACG eligible program May be eligible if not enrolled as a “regular student” in an ACG eligible program After High School No previous enrollment restriction for a student enrolled after high school

16. 1.State-Designated Program –State-submitted program –An advanced or honors program established by a state and in existence for the 2004-2005 or 2005-2006 school year –State Scholars Initiative (SSI) Programs ACG: Options for Rigorous Program

17. –States were given the option of retaining, modifying or adding rigorous programs of study by submitting those for review by November 1, 2006 for high school seniors graduating in 2007 for 2007-08 Several states – Kentucky, Minnesota, & South Carolina -- submitted programs that will be approved Most states made no changes A few states have made minor changes to previously approved plans ACG: Options for Rigorous Program

18. 2.A set of courses as outlined in the 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: Documenting Rigorous Program

19. ACG: Options for Rigorous Program Set of Courses 4 years of English 3 years of math –Two of which must be algebra I and above. 3 years of science –Two of which must be biology, chemistry, or physics 3 years of social studies 1 year of a language other than English

20. ACG: Documenting Rigorous Program Institutions are responsible for determining the eligibility of students who self-identified on at least the standard(s) selected by the student Institutions are encouraged to identify all eligible students based on records they have (e.g., high school transcripts, test scores) Institutions are also responsible for determining eligibility if student informs the institution directly

21. ACG: Documenting Rigorous Program Documentation from cognizant authority –For home-schooled students, the parent or guardian is the cognizant authority –For transfer students, an institution may rely on another school’s determination that the student completed a rigorous program NSLDS will store the data

22. ACG: Grade Point Average For second academic year, student must have a cumulative Grade Point Average (GPA) of at least 3.0 from the first academic year –GPA determined one time, after completion of first academic year For a student who transfers after completing first academic year, the new institution must calculate GPA using the grades from all coursework accepted from prior schools

23. National Science and Mathematics Access to Retain Talent Grant (National SMART Grant)

24. National SMART Grant Major Fields of Study Computer Science Engineering Technology Life Sciences Mathematics Physical Sciences Designated Critical Foreign Languages Identified by CIP* code in DCLs GEN-06-06 and GEN-06-15 *Classification of Instructional Program

25. National SMART Grant Major Fields of Study Requires that a recipient: –Declare an eligible major; or –Show intent to declare eligible major if school policy does not yet allow a major to be declared Institution must have a process for monitoring that the student is making progress toward completion of the program with that eligible major

26. National SMART Grant Grade Point Average For each payment period, a student must have a cumulative grade point average (GPA) of at least 3.0 that: –Includes all coursework required for degree in approved major –Is calculated through last completed payment period –Is reviewed prior to each disbursement

27. Other General Requirements

28. Both Programs Grade Point Average (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 payment period –When there is one or more grades of “incomplete” for courses taken in the payment period

29. Both Programs Need-Based Grants Total of ACG/National SMART Grant, EFC, Pell, and all estimated financial aid cannot exceed cost of attendance –ACG and National SMART Grant may not replace EFC in need equation –To avoid an over-award, an institution may reduce other aid, including FSEOG, or it may reduce the ACG or National SMART Grant

30. Both Programs Determining Enrollment Status Schools must have the same policy for determining enrollment status for Pell Grants and for ACGs and National SMART Grants Schools must use same recalculation policy, such as recalculation date (census date) that is used for Pell Grants

31. 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 Student may not receive ACG or National SMART Grant concurrently from more than one school All R2T4 requirements apply to the new grant programs

32. Both Programs Remaining Eligibility Determination of remaining eligibility based on percent of scheduled award remaining –Example: Student with second year ACG for two quarters for a total of $866 has received 66.7% of the 2006-07 scheduled award of $1,300. Student is only eligible, as a second-year student, for the remaining 33.3% of the ACG scheduled award ($434 of $1,300) Note: Scheduled award may be different if balance of an academic year is in a new award year

33. Both Programs Academic Year Student’s progress and duration of eligibility in an eligible program is measured in Title IV academic years. A Title IV academic year is defined in the HEA to be: –A minimum of either: Twenty-four semester credit hours, or Thirty-six quarter credit hours, or 900 clock hours. --AND-- A minimum of 30 weeks of instructional time (26 weeks for clock-hour programs)

34. Both Programs Academic Year - Credit Hours An institution’s Title IV Academic Year will often be different from the grade level progression used for most institutional purposes and for loan limits for FFEL and Direct Loans (e.g., 30 credit hours to progress from grade level 1 to grade level 2) 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 hour credits for a semester or trimester; --or-- –12 quarter hour credits for a quarter

35. Both Programs Academic Year - Credit Hours 24 Credit Hour Definition – –First Academic Year is 0 to 24 credits –Second Academic Year is 25 to 48 credits –Third Academic Year is 49 to 72 credits –Fourth Academic Year is 73 to 96 credits 30 Credit Hour Definition –First Academic Year is 0 to 30 credits –Second Academic Year is 31 to 60 credits –Third Academic Year is 61 to 90 credits –Fourth Academic Year is 91 to 120 credits

36. ACG Associate’s Degree Second Academic Year For the 2006-2007 and 2007-2008 Award Years –For a student enrolled in an associate’s degree program, the second 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 an AA program that requires 65 credits, the second academic year is from 31 credits to 65 credits See DCL GEN-06-18

37. National SMART Grant Bachelor’s Degree Fourth Academic Year For the 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 an BA/BS program that requires 130 credits, the fourth academic year is from 91 credits to 130 credits See DCL GEN-06-18

38. 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 - OR - Both Programs Academic Year – Weeks of Instructional Time For the 2006-2007 and 2007-2008 award years, an institution with a 30-week academic year and standard terms ( Formula 1) may:

39. Both Programs Academic Year – Weeks of Instructional Time May exercise option –On a student by student basis; –For same student for different terms; –For transfer credits differently than for home-earned 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 they have completed an academic year See DCL GEN-06-18

40. Business Processes

41. ACG: Documenting Rigorous Program Documentation from cognizant authority –For home-schooled students, the parent or guardian is the cognizant authority –For transfer students, an institution may rely on another school’s determination that the student completed a rigorous program NSLDS will store the data

42. ACG Applicant Self-Identification Process Starting July 1, 2006, the Department began notifying potentially eligible students about the ACG program Changed the FOTW to ask questions about high school and rigorous programs Offered a “call-in option” for non-electronic filers

43. ACG Applicant Self-Identification Process After July 1, 2006 –FOTW Filers: Potential ACG recipients will submit the additional information at the time they complete their FAFSA –Paper Filers: Potential ACG recipients will receive a SAR comment directing them to the web site and toll-free number

44. ACG Applicant Self-Identification Process Student presented with questions on their high school curriculum –High school completed after January 1, 2005 –State where high school curriculum completed Drop-down box with state designated programs –AP/IB course and test completion question –Listed courses question

46. ACG Applicant Self-Identification Process As of November 10, 2006, 681,986 students have self- identified themselves –Clearly some students do not meet minimum criteria –Institutions can use other data such as age to “screen” applicants….no follow-up necessary –See Electronic Announcement dated October 24, 2006

47. ACG Recognized State Rigorous Programs Quick Reference to the Recognized State Rigorous Secondary School Programs of Study http://www.ifap.ed.gov/eannouncements/attachments/ 0713HERAOperGuidanceAttachA.xls

51. ACG Applicant Self-Identification Process Results of student self-identification will be sent to all schools listed on student’s record –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

52. ACG Applicant Self-Identification Process 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 criterion selected by student

53. ACG Applicant Self-Identification Process For 2007-2008 Award Year, a criterion will be added that approximates the date of high school graduation For 2008-2009: –Likely, add graduation from high school question to the paper form –Same for FOTW

54. Availability of Funds Initial authorizations in GAPS and COD with Electronic Statements of Account (ESOA) on July 29, 2006 –Not like campus-based No institutional allocation –Allocation more like Pell Funds have been available in GAPS since early August –Separate authorization for each program

55. Status of Funds As of November 17, 2006 –762 schools out of 3,351 schools have drawn $45 million for ACG –484 schools out of 1,944 schools have drawn $41 million for National SMART Grant

56. Data Suggest Schools are using their own money Institutions have not made awards –Burden too great, given time frame –Uncertainty –Are not aware they must make awards –Think they can wait until next year –Students do not qualify Risk is we leave a large portion of $790 million designated for needy students on the table

57. Reporting of Awards and Payments Schools report student-specific awards and disbursements with COD Release 5.2, beginning December 16, 2006 COD can handle one grade level for Direct Loans and a different academic year for new grants

58. NSLDS and ACG/SMART NSLDS will begin: –Receiving ACG/SMART Grants from COD on December 17, 2006 –Displaying ACG/SMART Grants on the web site on December 18, 2006 –Using a new file format for Transfer Student Monitoring/Financial Aid History on January 1, 2007

59. NSLDS and ACG/SMART No ACG/SMART Grant award data will appear on 2006-2007 ISIRs Beginning on January 1, 2007: –2007-08 ACG/SMART Grant disbursement data will appear on 2007-08 ISIRs –ISIR Financial Aid History will display up to three ACG and three SMART Grant disbursements

60. Upcoming HERA Training Stand Up Training – More than 50 sites across country – Began late September – Will also offer a Spring series

61. Other Sessions Session # 5 - ACG and National SMART Grant – Student Eligibility and Academic Year Issues Session # 6 - ACG and National SMART Grant – Transfer Student, Secondary School Program of Academic Rigor, and Academic Major Issues Session # 17 - ACG and National SMART Grant – Reporting from CPS to COD General Session - Federal Update (Friday)

62. Words to Live By

63. Aristotle – "To give away money is an easy matter and in any man's power. But to decide to whom to give it, and how large and when, for what purpose and how, is neither in every man's power nor an easy matter. Hence it is that such excellence is rare, praiseworthy and noble."

64. Baker – “If it was easy, anyone could do it.”

65. Other Sessions Session # 5 - ACG and National SMART Grant – Student Eligibility and Academic Year Issues Session # 6 - ACG and National SMART Grant – Transfer Student, Secondary School Program of Academic Rigor, and Academic Major Issues Session # 17 - ACG and National SMART Grant – Reporting from CPS to COD General Session - Federal Update (Friday)