1 Academic Competitiveness Grants and National SMART Grants David Bergeron Office of Postsecondary...

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Academic Competitiveness Grants and National SMART

GrantsDavid BergeronDavid Bergeron

Office of Postsecondary EducationOffice of Postsecondary Education

Sue O’FlahertySue O’FlahertyFederal Student AidFederal Student Aid

Jeff BakerJeff BakerFederal Student AidFederal Student Aid

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The Higher Education Reconciliation Act of 2005 (HERA) created two new grant

programs

National Science and Mathematics

Access to Retain Talent Grant (National SMART)

Academic Competitiveness Grant (ACG)

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Both ProgramsACG and National

SMART Grants

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Rules and Regulations Interim Final Regulations published on

July 3, 2006 Invitation to comment through August 17, 2006 for possible changes for 2007-2008

Negotiated Rulemaking to begin in fall for 2008-2009 and beyond.Watch for IFAP announcements

Both Programs

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Authorization and Funding• Funding for these programs is not subject to

annual appropriations process: 2006-07 -- $790 million2007-08 -- $850 million2008-09 -- $920 million2009-10 -- $960 million2010-11 -- $1.01 billionIf funding insufficient, ratable reduction.No reduction for 2006-07Funds not spent in one year are carried over to

subsequent years.

Both Programs

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Award AmountsACG – First Academic Year of student’s program

of study - $750 Second Academic Year of student’s

program of study - $1,300National SMART Grant – $4,000 per year for each of the student’s

third and fourth academic year of undergraduate study

Note: There will be second year ACG and both third and fourth year National SMART Grants in 2006-07.

Both Programs

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All schools that participate in Pell Grants and offer an eligible educational program must participate in ACG and National SMART Grants

No new Program Participation Agreement (PPA)

No Administrative Cost Allowance (ACA)

Institutional Participation

Both Programs

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Academic Competitiveness Grants

(ACG)

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U.S. citizen Federal Pell Grant recipient First or second year student in a

two or four year degree program Full-time enrollment No specific major required

Eligibility Requirements

ACG

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Eligibility Requirements 1st year students May not have been previously enrolled

in a program of undergraduate education

Have completed secondary school program of study after January 1, 2006

2nd year students Have completed secondary school

program of study after January 1, 2005 Have a 3.0 G.P.A. in an eligible program

ACG

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Student must have completed a rigorous secondary school program of study

ED has outlined options to meet requirement in DCL GEN-06-08 and in the interim regulations


ACG

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Options for Rigorous Program

1. State Designated Program

State Submitted Program

An advanced or honors secondary school program established by a state and in existence for the 04-05 or 05-06 school year

State Scholars Initiative

ACG

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2. A set of courses as outlined in the Secretary’s May 2 letter to states.

3. Completion of at least two Advanced Placement courses with passing test score of 3 or two International Baccalaureate courses with passing test score of 4

ACG

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Courses Similar to State Scholars Initiative 4 years of English 3 years of math (Algebra I and above) 3 years of science (Bio, Chem, Physics) 3 years of social studies 1 year of a foreign language

ACG

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Options for Rigorous Program All states responded by June 1 to

Secretary’s May 2 request. 45 states have one or more designated

programs. Students from these states will have

all four options for their high school graduates.

Students from other states will have the last three options listed on the two previous slides.

ACG

2FSA NOTIFIESSTUDENT OF POTENTIAL ELIGIBILITY


4STUDENT SELF-

IDENTIFIES POTENTIAL ELIG. &

PROGRAM ONWEB PAGE

4STUDENT SELF-


PROGRAM ONWEB PAGE

5FSA INFORMS

SCHOOLS OF POTENTIAL

ELIGIBILITY

5FSA INFORMS


ELIGIBILITY

7SCHOOLCONFIRMSAND DOCUMENTS

ELIGIBILITY


ELIGIBILITY

9COD PROCESSES

GRANT & SCHOOL DRAWS

DOWN FUNDS FOR DISBURSEMENT

9COD PROCESSES



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COD SYSTEM8

COD SYSTEM

1Student Completes

FAFSA ANDSUBMITS TO

FSA

3STUDENT GOES

TO WEBSITE

6SCHOOL IDENTIFIES

ELIGIBLE ACG STUDENTS

USINGEXISTING

INFORMATION

ACG

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Applicant Self-Identification Process

Department notifies potentially eligible students of how to provide additional eligibility information.

Student provides additional information on website or calls toll-free number.

Department sends student responses to schools.

ACG

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Applicant Self-Identification

Emails and letters were sent to students who had applied prior to July 1 and who are potential ACG recipients. Notifications sent to –Pell EligibleYear in School (FAFSA response of 0, 1, 2,)U.S. CitizenDate of BirthNotice provides instructions on how to self-identify (website or toll-free number).

ACG

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After July 1, --

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 comment directing them to the website and toll-free number.

ACG

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Student presented with questions on their high school curriculum – Date high school curriculum completed State where high school curriculum completed

Drop-down box with state designated programs

AP/IB course and test completion questionListed courses question

ACG

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Results of student self-identification will be

sent to all schools listed on student’s record--

CPS will send ISIR’s 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

ACG

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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.

ACG

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Applicant Self-IdentificationSAR and ISIR Comments

Comment Code #267: SAR comment explaining potential ACG eligibility

Comment Code #268: SAR comment for students who selected a rigorous high school program or state scholars program

Comment Code #269: SAR comment for students who reported completion of AP/IB courses and tests.

ACG

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Applicant Self-IdentificationSAR and ISIR Comments

Comment Code #270: SAR comment for students who selected coursework completion

Comment code #271 advises student that their Financial Aid Administrator will determine their eligibility.

ACG



4STUDENT SELF-


PROGRAM ONWEB PAGE

4STUDENT SELF-


PROGRAM ONWEB PAGE

5FSA INFORMS


ELIGIBILITY

5FSA INFORMS


ELIGIBILITY


ELIGIBILITY


ELIGIBILITY

9COD PROCESSES



9COD PROCESSES



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COD SYSTEM8

COD SYSTEM

1Student Completes

FAFSA ANDSUBMITS TO

FSA

3STUDENT GOES

TO WEBSITE

6SCHOOL IDENTIFIES


USINGEXISTING

INFORMATION

ACG

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Documenting Rigorous Program

Institutions are responsible for determining the eligibility of students who ED reported as having self-identified eligibility. On at least the standard(s) selected by

the student . Institutions are also able to identify eligible

students based on records they have (e.g., high school transcripts, test scores).

ACG

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Documenting Rigorous Program Documentation from “cognizant authority”

can be provided by – The student Directly from “cognizant authority” Home schooled students, the parent or

guardian is the cognizant authority For transfer students, an institution may rely on

another school’s determination that student completed a rigorous program.

NSLDS will store the data

ACG

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Grade Point Average

For second academic year ACG, student must have a GPA of at least 3.0 from the first academic year.

Only determined one time, prior to first disbursement of second academic year award.

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.

ACG

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National SMART Grants

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U.S. citizen Pell Grant recipient for same payment

period Third or fourth year student in a four year

degree program Full-time enrollment in an eligible major Cumulative 3.0 GPA on a 4.0 scale in

student’s eligible program No rigorous high school program required


SMART Grant

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Computer Science Engineering Technology Life Sciences

Mathematics Physical Sciences Designated

Foreign Languages

Identified by CIP* code in DCL GEN-06-06*Classification of Instructional Program

National SMART Major Fields of Study

Major Fields of Study

SMART Grant

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Requires that a recipient –– Declare an eligible major, or – If school policy does not require a

major before 3rd year, student must show intent to declare eligible major.

In both cases, student must enroll in coursework leading to completion of the program with that eligible major.

Monitoring Major

SMART Grant

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• If student changes to an eligible major between payment periods –– Eligible for new payment period– Cannot be paid for prior periods

• If student changes to an ineligible major between payment periods –– No grant for that payment period– Prior disbursements need not be repaid

Monitoring Major

SMART Grant

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• If student changes to an eligible major within a payment period –– Can be paid for the entire payment period– Cannot be paid for prior periods

• If student changes to an ineligible major within a payment period –– No additional disbursements– Prior disbursement need not be repaid

Monitoring Major

SMART Grant

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Grade Point Average

Student must have a cumulative GPA of at least 3.0 for all payment periods.

Calculated from last completed payment period.

Reviewed prior to each disbursement. Provision for “interim disbursement” at

school’s risk.

SMART Grant

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Grade Point Average

Special rule for student who transfers after completing two academic years, the new school- For first 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

SMART Grant

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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, intentGPAFulltime Enrollment

Eligibility Determination

SMART Grant

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Both ProgramsACG and National

SMART Grants

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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

Both Programs

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Duration of Student Eligibility

For ACG, students are restricted to one grant for each of of 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 of the student’s third and fourth academic year in an eligible major.

Both Programs

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Academic Year For both programs, schools must use

their Title IV academic year definition to determine the student’s academic year in the program of study.

HEA provides that an academic year for an undergraduate student be a –

Minimum of 24 semester or trimester credit hours or 36 quarter credit hours

Both Programs

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Academic Year

Minimum Title IV definition of academic year is often not the same as grade level progression for loans and for other institutional purposes (i.e., 30 credit hours to progress from grade level 1 to grade level 2)

Both Programs

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Academic Year School may define its Title IV academic

year as more than 24 credit hours – 30 in the examples.

If school is semester, trimester, or quarter and it defines fulltime in the summer as requiring 12 credits there is – No impact on 12 credits for full-time Pell No impact on 6 credits for FFEL/DL loans

Both Programs

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Academic Year- 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.

Both Programs

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Academic Year- ACG Example

Institution Defines Title IV Academic Year as 30 credit hours and grade level progression as 30 credit hours.

First year ACG recipient completes 24 semester hours

Student not yet eligible for second year ACG award, because 30 credits required to complete first academic year. Student still at first year loan level.

Both Programs

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Academic Year- SMART Example


Student has completed a total of 48 semester hours in eligible program

Student now eligible for first National SMART Grant while still “sophomore” and still at second year loan limit.

Both Programs

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Academic Year- SMART Example


Otherwise eligible student has completed a total of 48 semester hours in eligible program

Student not yet eligible for first National SMART Grant while still “sophomore” and still at second year loan limit.

Both Programs

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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

Both Programs

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Disbursements

Student may not receive ACG or National SMART concurrently from more than one school

ACG and National SMART must be received from same school from which Pell Grant is received

Both Programs

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Transfer Students

Determination of remaining eligibility for transfers based on % of scheduled award remaining

Example: Student 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

Both Programs

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Need Based Grants

Total of EFC and all estimated financial aid cannot exceed cost of attendance

ACG and National SMART may not replace EFC in need equation

May reduce other aid, including FSEOG, to avoid an overaward.

May reduce ACG/National SMART award to avoid an overaward.

Special treatment of VA benefits No overaward tolerance

Both Programs



4STUDENT SELF-


PROGRAM ONWEB PAGE

4STUDENT SELF-


PROGRAM ONWEB PAGE

5FSA INFORMS


ELIGIBILITY

5FSA INFORMS


ELIGIBILITY


ELIGIBILITY


ELIGIBILITY

9COD PROCESSES



9COD PROCESSES



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COD SYSTEM8

COD SYSTEM

1Student Completes

FAFSA ANDSUBMITS TO

FSA

3STUDENT GOES

TO WEBSITE

6SCHOOL IDENTIFIES


USINGEXISTING

INFORMATION

Both Programs

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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, Like Pell or Direct Loans

First draw downs from GAPS available first week of August 2006

Schools will receive separate authorization for each program

Both Programs

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Availability of Funds GAPS Award Number for ACG will be

P375A06xxxx

GAPS award number for National Smart Grant will be : P376506xxxx

“xxxx” are populated with school’s GAPS award sequence number that currently exists for the Pell Grant and Direct Loan programs

Both Programs

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Reporting of Awards and Payments

Schools report student specific awards and disbursements with COD Release 5.2, on December 16, 2006.

COD will begin reporting to NSLDS on December 17, 2006.

COD can handle one academic year for loans and a different grade level for grants.

Academic year is an element in award block

Both Programs

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Reporting of Awards and Payments

COD XML Common Record -- Student name Student SSN Student date of birth Student citizenship Student grade level Award amount Disbursement amount

Both Programs

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Reporting of Awards and Payments For ACG – Eligibility Reason Code

State Designated Program: “01” Six-digit ‘program code’ found on

On flat file On FAA Access On list posted to IFAP

AP/IB: “02” List of Courses: “03”

For National SMART Grant Major/CIP code

Both Programs

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EDExpress

September 1, 2006, EDExpress 3.0 release

Functionality includes: Ability to import an ACG Data file

and print Ability to enter and store ACG and

National SMART grant originations and disbursements

Both Programs

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EDExpress

EDExpress functionality continued EDExpress software will hold

originations and disbursements until COD system is ready to receive.

Schools able to import ESOAs for ACG and National SMART Grants

Both Programs

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Key Implementation Dates

July 1, 2006ACG Web Screens on FOTW,

Student Inquiry, and FAA AccessEmail and paper notifications

sent to potentially eligible students

ACG SAR CommentsSchools begin receiving ISIRs

and Flat Files

Both Programs

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July 29, 2006ESOA with an Initial

Authorization (also known as Current Funding Level-CFL) available for Advanced Funded or Heightened Cash Monitoring 1 (HCM1) funding methods

School can view CFL on COD website: www.cod.ed.gov

Both Programs

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September 1, 2006 EDExpress release 3.0 available

December 16, 200 School able to send origination and

disbursement information about ACG and National SMART awards using new COD XML Common Record Block Or by submitting individual records via the COD Web Site.

EDExpress 4.0 available

Both Programs

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December 17, 2006 NSLDS begins to receive ACG and

National SMART award information

April 14, 2007 Reports available for ACG and SMART Includes reconciliation, YTD reports, SAS,

etc

Both Programs

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Questions

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