Carney McCullough

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Title IV GrantProgramsUpdate

• Carney McCullough
• Fred Sellers
• Office of
• Postsecondary Education

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Agenda

• Budget
• Federal Pell Grants 2009-2010
• Two Pells in an award year
• Duration of eligibility
• Ineligibility due to civil commitment
• Survivors of Iraq/Afghanistan service members
• Federal Pell Grants 2010-2011
• Iraq and Afghanistan Service Grants (IASGs)
• Proposed Two Pells in an award year
• Records First process
•  ACG/National SMART Grants 2009-2010
• Interim final regulations
• Grade level progression
• General Student eligibility
• ACG requirements
• National SMART Grant requirements
• ACG/National SMART Grants 2010-2011
• Final year of program funding

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Budget
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Budget Pell FY 2009 (2009-2010)

• Budget authority
• 17,288,000,000 discretionary
• 2,090,000,000 mandatory
• Aid available
• 25,329,000,000

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Budget PellFY 2009 (2009-2010)

• Maximum Scheduled Award 5,350
• 4,860 (discretionary) 490 (mandatory)
• Minimum Scheduled Award 976
• 486 (discretionary) 490 (mandatory)
• DCL P-09-01 Payment and Disbursement Schedules

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Budget Pell proposedFY 2010 (2010-2011)

• Budget authority 0 discretionary
• Budget authority 28,654,000,000 mandatory
  (entitlement)
• Aid available 28,616,100,000
• Maximum Scheduled Award 5,550
• Annual increase of CPI plus 1

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Budget ACG/National SMART Grants

• Mandatory funds
• FY 2009 (2009-2010)
• Budget authority 73,000,000
• Aid available 554,000,000
• Proposed FY 2010 (2010-2011)
• Budget authority 1,386,000,000
• Aid available 608,000,000
• No proration of maximum awards necessary

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Federal Pell Grants2009-2010
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Two Pells in an award year

• Higher Education Opportunity Act of 2008
• Requirement that eligible students receive second
  Scheduled Award
• No current applicable regulations

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Two Pells Basics

• Are up to two consecutive Scheduled Awards during
  an award year for an eligible student
• Accelerate progress in a degree or certificate
  program
• Use the same amount for both Scheduled Awards for
  a student in an award year
• Have an enrollment status of
• For first Scheduled Award, any enrollment status
• For second Scheduled Award, at least half-time

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Two Pells Basics

• Calculate the payment for each payment period
  based on the Scheduled Award
• Can begin paying from second Scheduled Award in a
  payment period in which the student is also
  receiving the balance of the first Scheduled
  Award
• Can pay a student up to a maximum of 200 percent
  of the Scheduled Award amount in an award year

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Two Pells Crossover payment period

• Is a payment period that includes June 30 and
  July 1
• May be a term or a nonterm payment period
• Must be assigned to one award year
• Assign at option of institution all in same
  year or individual student basis
• May assign two consecutive crossover payment
  periods to the same award year
• Must have valid SAR/ISIR for assigned year

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Two Pells Crossover payment period

• Example
• A program has a semester calendar with two summer
  sessions (6/1 7/14 and 7/20 8/28).
• If combined in one term, the combined term is a
  crossover payment period regardless of what
  classes students attend.
• If the two sessions are considered separate
  terms, only the 6/1 7/14 term is a crossover
  payment period.

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Two Pells Crossover payment period

• Raises packaging issues
• Must use same EFC, COA and need for all programs
  except Pell
• For Pell, use EFC for the award year from which
  the student will be paid

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Two Pells Crossover payment period

• Example
• Summer term normally assigned as last payment
  period of award year.
• Institution decides to pay 2009 summer Pell from
  2009-10 ISIR.
• Use 2009-10 ISIR/EFC for Pell
• Use 2008-09 ISIR/EFC for packaging all other aid
• Amount of Pell received applied to determining
  need for other Title IV.

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Two Pells Examples

• Standard term semester calendar
• Two semesters, fall and spring
• 12-week, 3-session summer is a crossover term
  with 12 hours as full-time
• Students
• 0 EFC
• 10,000 COA
• First enrollment is fall 2008
• Scheduled Award is 5,350

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Two Pells Example A
100 2008-09 4,731
Summer 20090
Spring 20092,365
Fall 20082,366
2008-09 Award Year
150 2009-10 8,025
Fall 20092,675
Spring 20102,675
Summer 20102,675
2009-10 Award Year
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Two Pells Example B
Fall 20082,366
100 2008-09 4731
Spring 20092,365
2008-09 Award Year
Summer 20092,675
Fall 20092,675
Summer 20102,675
Spring 20102,675
200 2009-10 10,700
2009-10 Award Year
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Two Pells Example C

• Completes first Scheduled Award and begins Second
  Scheduled Award within same term

¾-timeSpring 2010 2,0071,337 670100
12.5
Full-timeFall 20092,67575 (used)
Half-time Summer 2009 1,338 25 (used)
112.52009-10 6,020
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Two Pells Reminder

• Cannot ignore crossover payment periods
• Cannot ignore intersessions between fall and
  spring semesters
• Must pay eligible students

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Two Pells COD

• Added new field in COD Common Record
• Additional Eligibility Indicator (AEI)
• Set AEI to true and increase award amount when
  awarding any part of second Scheduled Award
• With AEI, do not trigger POP MRR but do trigger
  concurrent enrollment

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Duration of eligibility

• Limits Pell to 9 Scheduled Awards
• Only first-time Pell recipients in the 2008-2009
  award year or after
• Assessed at percentage of award used
• Will track student percentage used in COD
• In COD and NSLDS beginning July 2009
• On the ISIR beginning in 2010-2011

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Duration of eligibility

• Disbursements based on enrollment status
• Duration based on percentage of Scheduled Awards
  used (up to 900 available)

Percentage of Scheduled Awards used 750 (150
still available)
Fall 2008FT
Spring 2009FT

100
2008-09
Fall 2009TQT
Spring 2010TQT
75
2009-10

Fall 2010 FT
Summer 2011HT
75

2010-11
Summer 2014FT
Fall 2014FT
Spring 2015FT
Summer 2015FT
200
2014-15

Fall 2015FT
Spring 2016FT
Summer 2016FT
150

2015-16

Fall 2016FT
Spring 2017FT
Summer 2017FT
150
2016-17
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Civil commitment

• A student who is subject to an involuntary civil
  commitment after completing a period of
  incarceration for a forcible or nonforcible
  sexual offense is ineligible to receive a Federal
  Pell Grant.

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Survivors of service members

• Students whose parent or guardian died as a
  result of military service in Iraq or Afghanistan
  after 9/11/2001
• Student must be less than 24 years old or
  enrolled in postsecondary program when the parent
  or guardian died
• Pell-eligible students have EFC reduced to zero
  for all Title IV

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Survivors of service members

• ED is working with DOD to develop a system to
  identify individuals in this category.
• There is no current system.
• Until system is developed, for assistance
  contact
• Dr. Thurman McClain
• thurman.mcclain_at_ed.gov

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Federal Pell Grants 2010-2011
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Iraq and Afghanistan Service Grants

• HEOA Technical Corrections (P.L. 111-39 )
• Enacted 7/1/2009
• Effective 7/1/2010
• Grants to students
• Have parent or guardian died as a result of
  military service in Iraq or Afghanistan after
  9/11/2001
• Must be less than 24 years old or enrolled in
  postsecondary program when the parent or guardian
  died
• Are not also receiving a Pell Grant

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Iraq and Afghanistan Service Grants

• Equal to maximum Pell Grant available for the
  award year
• Not to exceed COA
• Reduced for part-time enrollment
• Non-need-based aid
• Not EFA in packaging other Title IV aid

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Proposed Two Pells in an award year

• Negotiated rulemaking for regulations effective
  starting in 2010-11
• No agreement on EDs final proposal
• NPRM publication for public comment shortly

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Proposed Two PellsBases of final ED proposal

• Acceleration within a shorter time period than
  the regular schedule
• Requirements to maximize the benefit of most
  students second Scheduled Awards
• Must attend full-time, or almost full-time, to
  receive significant benefit
• Student achievement and accountability principles
  for use of funds under the American Recovery and
  Reinvestment Act of 2009

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Proposed Two Pells Basics

• Must successfully complete the credit or clock
  hours of the first academic year in the award
  year
• Enroll in an eligible program leading to a
  bachelors or associate degree or other
  recognized educational credential
• Enroll at least as a half-time student

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Proposed Two PellsSpecial circumstances

• May waive requirement to complete the hours of
  the academic year
• Must be due to circumstances beyond the students
  control
• Must be determined and documented on individual
  basis
• May include circumstances such as illness or
  classes not offered does not include withdrawing
  to avoid a grade or failing to register for
  offered class

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Proposed Two Pells Transfer students

• Assume completed first academic year if received
  all of first Scheduled Award at prior institution
• If less than first Scheduled Award, calculate
  hours considered to have completed

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Proposed Two Pells Transfer students

• Example
• Transfer received 2,000 of 4,000 Scheduled
  Award at prior institution. Current institution
  defines academic year, in part, as 24 semester
  hours.
• Hours in award year considered to have earned for
  prior attendance

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Proposed Two Pells Crossovers

• Full-time or three-quarter-time
• Must assign a crossover payment period to the
  award year in which the student receives the
  greater payment at the time payment is initially
  calculated
• Must reassign if subsequent information shows
  greater payment would result
• Half-time or less
• May assign to either year
• Must assign if student requests to maximize
  benefits over the two award years

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Proposed Two Pells Payment from two awards

• Payment for payment period is greater than
  balance of first Scheduled award.
• Payment is the remaining amount of the first
  Scheduled Award plus an amount from the second
  Scheduled Award for the balance of the payment.
• Payment from two awards may arise due to
• Acting on special circumstances
• Completing the hours of the academic year but not
  receive all of first Scheduled Award

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Proposed Two PellsNonapplicable hours

• In determining eligibility for a second Scheduled
  Award in an award year, may not use hours based
  on
• Advanced Placement (AP) programs
• International Baccalaureate (IB) programs
• Testing out, life experience, or similar
  competency measures
• Are not earned by attendance in the award year

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Proposed Two Pells Example
Summer 2009Full-time (12 hr) 2,675
Fall 2009 Full-time (12 hr)2,675
Spring 2010 Full-time (12 hr)2,675
2009-10 Award Year

• Fall, completes the hours of the first academic
  year
• Spring, receives payment from second Scheduled
  Award

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Proposed Two Pells Example
Summer 2010 ¾ time (9 hr)2,007
Fall 2010 Full-time (15 hr)2,675
Summer 2011 Full-time (15 hr)2,675
Spring 2011 Full-time (15 hr)2,675
2010-11 Award Year

• Fall, completes the hours of the first academic
  year
• Spring, receives payment from first and second
  Scheduled Awards
• 668 1st award
• 2,007 2nd award

operationally transparent
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Proposed Two Pells Example
Fall 2011¾ time (9 hr) 1,500
Spring 2012 Full-time (12 hr)2,000
Summer 2012 Full-time (12 hr)????
2011-12 Award Year

• Has 1,400 EFC 4,000 Scheduled Award
• Spring, does not complete first academic year
• Summer, not eligible in 20011-12 unless special
  circumstances, e.g., illness reduced class load
• If eligible for 2012-2013, would assign to new
  award year

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Records First in 2010-2011

• Only process for Advance Payment Method
• Same process as ACG/National SMART Grants
• Records First process
• No advance authorizations
• Authorization driven by student disbursement
  data
• Timeframes for data
• COD would accept student disbursement data up to
  7 days prior to the disbursement date.
• Data (set to true) would process through to G5
  within 24 hours to be available for drawdown.

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Academic Competitiveness Grants andNational
SMART Grants2009-2010
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Interim final regulations

• Published May 1, 2009
• Is effective July 1, 2009 (2009-2010 award year)
• Invited public comment with comments due
• Received few comments examples
• Clarify eligibility of certificate programs only
  at degree-granting institutions
• Extend 1st year eligibility on one-year
  certificate programs and 2nd year eligibility of
  two-year certificate and associate degree
  programs (like baccalaureate programs)

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Grade level progression

• No longer use Title IV academic year or weeks of
  instructional time
• Now use grade level
• Year refers to grade level in eligible program,
  as determined by institution
• Use only credit or clock hours credited towards
  completing eligible program including AP, IB,
  Testing out, life experience, or similar
  competency measures

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Grade level progression

• Must be the same year as used for FFEL/DL annual
  loan limits
• Must use the students grade level at the
  beginning of payment period
• Cannot advance during payment period as in
  FFEL/DL

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Grade level progression Transition

• For 2009-10, must use current grade level to
  determine students year
• Must ignore placement by academic year in prior
  years

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Grade level progression Transition example

• 2008-09 award year
• After Fall, completes 2nd academic year
• In Spring, receives first half of 3rd year
  National Smart Grant
• 2009-10 award year
• Is in 2nd year (grade level) in Fall receives
  remaining 2nd year ACG
• In Spring is 3rd year receives remaining 3rd
  year National SMART Grant

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General Student eligibility

• Eligible noncitizens are now eligible for ACG and
  National SMART Grants.
• Students enrolled at least half-time are now
  eligible for ACG and National SMART Grants.
• Must calculate payments based on annual award
  amounts for part-time students just like Pell
• See April 9, 2009 IFAP Electronic Announcement
  for annual award amounts
• Makes correspondence study eligible

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ACG Eligible program

• Certificate/diploma programs now eligible
• For a first-year award
• Is a certificate or diploma undergraduate program
  that is at least one academic year in length
• Offered at two- or four-year degree granting
  school
• For a second-year award
• Is a certificate or diploma undergraduate program
  that is at least two academic years in length
• Offered at two- or four-year degree granting
  school

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ACG Prior enrollment

• Prior enrollment restriction for first-year
  students does not apply to
• Students who were enrolled in postsecondary
  education as part of a dual-enrollment program
• Transfer students

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ACG Rigorous secondary program

• Any curriculum recognized by Secretary after
  1/01/05 and before 7/01/09 will continue to be
  considered rigorous, including
• Secretarys list of rigorous coursework
• AP/IB courses and tests
• Effective 7/01/09, new rigorous programs will be
  submitted by designated official in State and
  accepted by Secretary

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ACG GPA and second year eligibility

• Requires GPA of at least 3.0 for 1st year
• If sophomore solely because of AP/IB credits
• Has no GPA not eligible
• If sophomore solely because of dual enrollment
  credits
• Has grades could be eligible
• If sophomore due to combination of AP/IB and dual
  enrollment credits
• Has dual enrollment credit grades could be
  eligible

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National SMART GrantsThird Scheduled Award

• Third Scheduled Award for fifth year of five-year
  degree program
• Requirements
• Must have five full undergraduate years of
  coursework for completion of program
• Must be certified by the appropriate official of
  school
• Is not applicable to eligible liberal arts major

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National SMART Grants Extension of eligibility

• For a program with less than five full years
• The fourth year of eligibility extends from
  beginning of fourth year to completion of
  program.
• For program with at least five full years
• The fifth year of eligibility extends from
  beginning of fifth year to completion of program.

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National SMART Grants Eligible major

• Must document that student is progressing in
  program of study
• Are no longer required to document at least one
  course in the major
• Issued Dear Colleague Letter GEN-09-09, July 7,
  2009
• List of eligible National SMART Grant majors for
  the 2009-2010 award year

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National SMART Grants Eligible major

• Qualifying liberal arts curriculum as eligible
  major
• At least equal to requirements identified for a
  national SMART Grant eligible major at
  institution offering bachelors
• OR
• Requires student to undertake rigorous course of
  study in math, biology, chemistry, and physics
• At least four years of math
• At least three years of sciences, with lab in
  each year

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National SMART Grants Eligible program

• May be a bachelors degree with a liberal arts
  curriculum as an eligible major
• Offered prior to 2/08/06
• Is only curriculum at institution
• Is not a five-year program
• Requires prior Departmental approval
• Have approved three programs

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Academic Competitiveness Grants andNational
SMART Grants 2010-2011
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Final year of program funding

• 2010-2011

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Contact information

• Carney McCullough
• Phone [phone]
• Email carney.mccullough_at_ed.gov
• Fred Sellers
• Phone [phone]
• Email fred.sellers_at_ed.gov
• Fax [phone]

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Questions?
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