Academic Competitiveness

Grants and National SMART

Grants
David Bergeron
Office of Postsecondary Education

Sue O’Flaherty
Federal Student Aid
Jeff Baker
Federal Student Aid 1
The Higher Education Reconciliation Act of
2005 (HERA) created two new grant
programs

Academic Competitiveness Grant (ACG)

National Science and Mathematics

Access to Retain Talent Grant (National SMART)
2
 Both Programs
ACG and National
SMART Grants

3
 Both Programs

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
4
 Both Programs

Authorization and Funding

• Funding for these programs is not subject to
annual appropriations process:
2006-07 -- $790 million
2007-08 -- $850 million
2008-09 -- $920 million
2009-10 -- $960 million
2010-11 -- $1.01 billion
If funding insufficient, ratable reduction.
No reduction for 2006-07
Funds not spent in one year are carried over to
subsequent years.
5
 Both Programs

Award Amounts
ACG –
 First Academic Year of student’s
program of study - $750
 Second Academic Year of student’s
program of study - $1,300
National 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. 6
 Both Programs

Institutional Participation
 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)

7
 Academic
Competitiveness Grants
(ACG)

8
 ACG

Eligibility Requirements
 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

9
 ACG

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
10
 ACG

Eligibility Requirements
 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

11
 ACG

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

12
 ACG

Options for Rigorous Program

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

13
 ACG

Options for Rigorous Program

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

14
 ACG

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.
15
 ACG

1 2
Student Completes FSA NOTIFIES
FAFSA AND STUDENT OF
SUBMITS TO POTENTIAL
FSA ELIGIBILITY

4 5
3 STUDENT SELF- FSA INFORMS
STUDENT GOES IDENTIFIES SCHOOLS
TO POTENTIAL ELIG. & OF POTENTIAL
WEBSITE PROGRAM ON ELIGIBILITY
WEB PAGE

6 7
SCHOOL IDENTIFIES SCHOOLCONFIRMS 8
ELIGIBLE AND DOCUMENTS
ACG STUDENTS
COD SYSTEM
ELIGIBILITY
USING
EXISTING
INFORMATION
9
COD PROCESSES
GRANT &
SCHOOL DRAWS
DOWN FUNDS FOR
DISBURSEMENT
 ACG

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.
17
 ACG

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 Eligible
Year in School (FAFSA response of 0, 1, 2,)
U.S. Citizen
Date of Birth
Notice provides instructions on how to self-identify
(website or toll-free number).
18
 ACG

Applicant Self-Identification

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.
19
 ACG

Applicant Self-Identification
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 question
Listed courses question
20
ACG
ACG
ACG
ACG
 ACG

Applicant Self-Identification

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
25
Access
 ACG

Applicant Self-Identification

 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.

26
 ACG

Applicant Self-Identification
SAR 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. 27
 ACG

Applicant Self-Identification
SAR 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.

28
 ACG

1 2
Student Completes FSA NOTIFIES
FAFSA AND STUDENT OF
SUBMITS TO POTENTIAL
FSA ELIGIBILITY

4 5
3 STUDENT SELF- FSA INFORMS
STUDENT GOES IDENTIFIES SCHOOLS
TO POTENTIAL ELIG. & OF POTENTIAL
WEBSITE PROGRAM ON ELIGIBILITY
WEB PAGE

6 7
SCHOOL IDENTIFIES SCHOOLCONFIRMS 8
ELIGIBLE AND DOCUMENTS
ACG STUDENTS
COD SYSTEM
ELIGIBILITY
USING
EXISTING
INFORMATION
9
COD PROCESSES
GRANT &
SCHOOL DRAWS
DOWN FUNDS FOR
DISBURSEMENT
 ACG

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).
30
 ACG

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
31
 ACG

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.

32
National SMART Grants

33
 SMART Grant

Eligibility Requirements
 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
34
 SMART
National SMART Major Grant
Fields of Study

Major Fields of Study

 Computer Science  Mathematics

 Engineering  Physical Sciences
 Technology  Designated
 Life Sciences Foreign Languages

Identified by CIP* code in DCL GEN-06-

06
35
*Classification of Instructional Program
 SMART Grant

Monitoring Major
 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.

36
 SMART Grant

Monitoring Major
• 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

37
 SMART Grant

Monitoring Major
• 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

38
 SMART Grant

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.

39
 SMART Grant

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
40
 SMART Grant

Eligibility Determination
 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, intent
 GPA
 Fulltime Enrollment
41
 Both Programs
ACG and National
SMART Grants

42
 Both Programs

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
43
 Both Programs

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.
44
 Both Programs

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
45
 Both Programs

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)

46
 Both Programs

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

47
 Both Programs

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.

48
 Both Programs

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.
49
 Both Programs

Academic Year- SMART Example

 Institution Defines Title IV Academic Year
as 24 credit hours but grade level
progression as 30 credit hours.
 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.

50
 Both Programs

Academic Year- SMART Example

 Institution Defines Title IV Academic Year
as 30 credit hours but grade level
progression as 30 credit hours.
 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.
51
 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
52
 Both Programs

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

53
 Both Programs

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
54
 Both Programs

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
55
 Both Programs

1 2
Student Completes FSA NOTIFIES
FAFSA AND STUDENT OF
SUBMITS TO POTENTIAL
FSA ELIGIBILITY

4 5
3 STUDENT SELF- FSA INFORMS
STUDENT GOES IDENTIFIES SCHOOLS
TO POTENTIAL ELIG. & OF POTENTIAL
WEBSITE PROGRAM ON ELIGIBILITY
WEB PAGE

6 7
SCHOOL IDENTIFIES SCHOOLCONFIRMS 8
ELIGIBLE AND DOCUMENTS
ACG STUDENTS
COD SYSTEM
ELIGIBILITY
USING
EXISTING
INFORMATION
9
COD PROCESSES
GRANT &
SCHOOL DRAWS
DOWN FUNDS FOR
DISBURSEMENT
 Both Programs

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
57
 Both Programs

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
58
 Both Programs

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 59
 Both Programs

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
60
 Both Programs

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 61
 Both Programs

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

62
 Both Programs

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

63
 Both Programs

Key Implementation Dates

 July 1, 2006
 ACG Web Screens on FOTW,
Student Inquiry, and FAA Access
 Email and paper notifications
sent to potentially eligible
students
 ACG SAR Comments
 Schools begin receiving ISIRs
and Flat Files
64
 Both Programs

Key Implementation Dates

 July 29, 2006
 ESOA 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
65
 Both Programs

Key Implementation Dates

 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
66
 Both Programs

Key Implementation Dates

 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
67
Questions

69