Academic Competitiveness Grant and National SMART Grant

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

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• The Higher Education Reconciliation Act of 2005
  (HERA)

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

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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

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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

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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

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Rules and Regulations
Negotiated Rulemaking for the 2008-2009 Award
Year and Beyond

• 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

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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 institutions implementation of the programs

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• Basic Program Requirements

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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
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Separate and Distinct Programs
ACG National SMART
1st 2nd academic years of a two or four-year degree program 3rd 4th 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
1st Academic Year - 7502nd Academic Year - 1,300 3rd Academic Year - 4,000 4th Academic Year - 4,000
GPA of at least 3.0 as of the end of 1st academic year only GPA of at least 3.0 at each disbursement
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• Duration of Student Eligibility

• For ACG, students are restricted to
• one grant for the students first academic year
  and
• one grant for the students second academic year
• For National SMART Grant, students are restricted
  to
• one grant for each of the students third and
  fourth academic years

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• Academic
• Competitiveness
• Grant
• (ACG)

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ACG Eligibility Requirements

• 1st-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
• 2nd-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

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Previous Enrollment Restriction for 1st- 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

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ACG Options for Rigorous Program

• 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

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ACG Options for Rigorous Program

• 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

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ACG Documenting Rigorous Program

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

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ACG Options for Rigorous ProgramSet 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

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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

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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 schools determination that the student
  completed a rigorous program
• NSLDS will store the data

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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

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

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National SMART GrantMajor 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
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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

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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

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• Other
• General
• Requirements

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Both ProgramsGrade Point Average (GPA)
Incompletes

• All coursework taken in the payment period must
  be used in the calculation of a students 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

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Both ProgramsNeed-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

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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

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Both ProgramsDisbursements

• 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

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Both ProgramsRemaining 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

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Both ProgramsAcademic Year

• Students 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)

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Both ProgramsAcademic Year - Credit Hours

• An institutions 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 programs 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

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Both ProgramsAcademic 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

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ACGAssociates Degree Second Academic Year

• For the 2006-2007 and 2007-2008 Award Years
• For a student enrolled in an associates 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 institutions 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

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National SMART GrantBachelors Degree Fourth
Academic Year

• For the 2006-2007 and 2007-2008 award years
• For a student enrolled in a bachelors 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 institutions 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

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Both ProgramsAcademic 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
- OR -

• Determine the actual number of weeks of
  instructional time that were included for the
  student to complete the number of credit hours in
  the institutions Title IV academic year
  definition

• Assume that there were 30 weeks of instructional
  time for each increment of credit hours that
  comprises the institutions Title IV academic
  year definition

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Both ProgramsAcademic 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

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• Business Processes

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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 schools determination that the student
  completed a rigorous program
• NSLDS will store the data

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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

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ACGApplicant 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

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ACGApplicant 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

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ACGApplicant 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

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ACGRecognized State Rigorous Programs

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

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ACGApplicant Self-Identification Process

• Results of student self-identification will be
  sent to all schools listed on students 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

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ACGApplicant 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

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ACGApplicant 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

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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

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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

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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

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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

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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

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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

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Upcoming HERA Training

• Stand Up Training
• More than 50 sites across country
• Began late September
• Will also offer a Spring series

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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)

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• Words to Live By

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• 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."

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• Baker
• If it was easy, anyone could do it.

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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)