Academic Competitiveness Grants and National SMART Grants

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Academic Competitiveness Grants and National
SMART Grants

David Bergeron Office of Postsecondary
Education Sue OFlaherty Federal Student
Aid Jeff Baker Federal Student Aid
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• 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)
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• Both Programs
• ACG and National SMART Grants

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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

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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.

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Both Programs

• Award Amounts
• ACG
• First Academic Year of students program of
  study - 750
• Second Academic Year of students program of
  study - 1,300
• National SMART Grant
• 4,000 per year for each of the students 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.

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Institutional Participation
Both Programs

• 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)

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• Academic Competitiveness Grants
• (ACG)

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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

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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

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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

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ACG
Options for Rigorous Program

• 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

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ACG
Options for Rigorous Program
2. A set of courses as outlined in the
Secretarys 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
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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

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ACG
Options for Rigorous Program

• All states responded by June 1 to Secretarys 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.

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ACG
1 Student Completes FAFSA AND SUBMITS TO FSA
2 FSA NOTIFIES STUDENT OF POTENTIAL ELIGIBILITY
4 STUDENT SELF- IDENTIFIES POTENTIAL ELIG.
PROGRAM ON WEB PAGE
5 FSA INFORMS SCHOOLS OF POTENTIAL ELIGIBILITY
3 STUDENT GOES TO WEBSITE
7 SCHOOLCONFIRMS AND DOCUMENTS ELIGIBILITY
6 SCHOOL IDENTIFIES ELIGIBLE ACG STUDENTS
USING EXISTING INFORMATION
8 COD SYSTEM
9 COD PROCESSES GRANT SCHOOL DRAWS DOWN FUNDS
FOR DISBURSEMENT
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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.

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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).

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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.

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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

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ACG
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ACG
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ACG
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ACG
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ACG
Applicant Self-Identification

• 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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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.

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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.

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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.

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ACG
1 Student Completes FAFSA AND SUBMITS TO FSA
2 FSA NOTIFIES STUDENT OF POTENTIAL ELIGIBILITY
4 STUDENT SELF- IDENTIFIES POTENTIAL ELIG.
PROGRAM ON WEB PAGE
5 FSA INFORMS SCHOOLS OF POTENTIAL ELIGIBILITY
3 STUDENT GOES TO WEBSITE
7 SCHOOLCONFIRMS AND DOCUMENTS ELIGIBILITY
6 SCHOOL IDENTIFIES ELIGIBLE ACG STUDENTS
USING EXISTING INFORMATION
8 COD SYSTEM
9 COD PROCESSES GRANT SCHOOL DRAWS DOWN FUNDS
FOR DISBURSEMENT
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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).

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

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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.

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• National SMART Grants

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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 students
  eligible program
• No rigorous high school program required

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National SMART Major Fields of Study
SMART Grant
Major Fields of Study

• Computer Science
• Engineering
• Technology
• Life Sciences

• Mathematics
• Physical Sciences
• Designated Foreign Languages

Identified by CIP code in DCL GEN-06-06 Classifi
cation of Instructional Program
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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.

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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

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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

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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 schools
  risk.

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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

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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

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• Both Programs
• ACG and National SMART Grants

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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

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Both Programs

• Duration of Student Eligibility
• For ACG, students are restricted to one grant for
  each of of 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 of the students third
  and fourth academic year in an eligible major.

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Both Programs

• Academic Year
• For both programs, schools must use their Title
  IV academic year definition to determine the
  students 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

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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)

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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

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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.

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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.

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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.

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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.

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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

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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

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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

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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

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Both Programs
1 Student Completes FAFSA AND SUBMITS TO FSA
2 FSA NOTIFIES STUDENT OF POTENTIAL ELIGIBILITY
4 STUDENT SELF- IDENTIFIES POTENTIAL ELIG.
PROGRAM ON WEB PAGE
5 FSA INFORMS SCHOOLS OF POTENTIAL ELIGIBILITY
3 STUDENT GOES TO WEBSITE
7 SCHOOLCONFIRMS AND DOCUMENTS ELIGIBILITY
6 SCHOOL IDENTIFIES ELIGIBLE ACG STUDENTS
USING EXISTING INFORMATION
8 COD SYSTEM
9 COD PROCESSES GRANT SCHOOL DRAWS DOWN FUNDS
FOR DISBURSEMENT
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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

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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 schools GAPS award
  sequence number that currently exists for the
  Pell Grant and Direct Loan programs

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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

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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

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Reporting of Awards and Payments
Both Programs

• 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

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EDExpress
Both Programs

• 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

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EDExpress
Both Programs

• 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

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Key Implementation Dates
Both Programs

• 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

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Key Implementation Dates
Both Programs

• 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

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Key Implementation Dates
Both Programs

• 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

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Key Implementation Dates
Both Programs

• 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

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Questions