**[Academic Competitiveness Grants Negotiated Rulemaking]{.underline}**

**[Rigorous Secondary School Programs of Study]{.underline}**

**[Background]{.underline}**

For the first two years of the program, there are four options available
to all students:

1.  Advanced or Honors diplomas;

2.  State Scholars;

3.  Coursework requirements similar to State Scholars; or

4.  Any secondary school program for a student who completes at least
    two International Baccalaureate (IB) courses and receives a score of
    "4" or higher on the examinations for at least two of those courses
    or any secondary school program for a student who completes at least
    two Advanced Placement (AP) courses and receives a score of "3" or
    higher on the AP program exam for at least two of those courses.

States proposed other options in addition to the four above.
Approximately 40 states have additional options available to students.
Institutions currently document that a student completed a rigorous
secondary school program of study.

**[Options for students graduating through 2009]{.underline}**

**Option 1**

No change -- retain current options.

**Option 2**

Incorporate one change under the coursework requirements similar to
State Scholars:

-   Mathematics: Four years of mathematics including at least Algebra I
    plus two other classes at a level higher than Algebra I.

# Options for students graduating in 2010 and beyond

**Option 1**

No change.

**Option 2**

Incorporate changes to the coursework requirements option:

-   Mathematics: Four years of mathematics, including at least Algebra I
    plus three other classes at a level higher than Algebra I.

-   Science: Three years of science, including at least two years of
    laboratory science courses from Biology, Chemistry, or Physics.

-   Three years of Social Studies.

-   Two years of one language other than English or one year of one
    language other than English plus one year of Social Studies,
    Humanities, Technology, Computer Science, or another foreign
    language.

In addition, the Advanced or Honors diplomas and State Scholars
Initiative options would be removed from the current list of options on
the premise that SEAs would propose these for recognition.

# Option 3

For public school students, accept all options proposed by a State
Education Agency (SEA) that meet the coursework requirements for
admission to the State's most selective public four-year university.
These would be the only options under which public school student could
qualify. A default curriculum by which private, home-schooled,
Department of Defense (DoD), and foreign high school students could
qualify would be retained. In addition, private, DoD, and foreign high
school students could still quality under the AP/IB option.

## Documentation of rigorous secondary school program of study alternatives

**Option 1**

Institutions would continue to document that a student completed a
rigorous secondary school program of study.

**Option 2**

For public school students, Federal Student Aid (FSA) would send the
names of Pell Grant-eligible students to the student's SEA. The SEA
would certify that the student completed the recognized rigorous
secondary school program of study and return such certification to FSA.
Institutions would be notified by FSA of a student's eligibility for an
ACG award.

In addition, for private, home-schooled, DoD, and foreign high school
students, institutions would continue to document that a student
completed a rigorous secondary school program of study under either the
default curriculum option or the AP/IB option.

**Proposed Regulatory Language**

**Committee II -- ACG/National SMART Grant**

**Issues**

**Origin:** ED

**Issue:** Mandatory participation

**Regulatory Cite:** §691.7(a) and (b)

**Original Summary of Issue:** An institution with eligible educational
programs that participates in the Federal Pell Grant Program must
participate in the ACG and National SMART Grant programs. This provision
was adopted to ensure that eligible students would be able to receive
grants by ensuring that institutions would participate in the ACG and
National SMART Grant programs. Although, this policy is at variance with
the general title IV requirements that generally allow institution
flexibility in determining which title IV programs the institution may
choose to participate, it also reflects the mandatory nature of the two
new programs.

**Summary of Change:** There is no change. Although there was one
concern with the additional administrative burden this requirement would
place on institutions with a small population of eligible students,
there was overwhelming support to maintain the current requirement that
an institution that participates in the Federal Pell Grant Program must
also participate in the ACG and National SMART Grant programs. This
provision helps ensure that students with the most need receive
additional Federal funding to offset the rising cost of higher
education.

**Change:** None.

**Proposed Regulatory Language**

**Committee II -- ACG/National SMART Grant**

**Issues**

**Origin:** ED

**Issue:** Eligibility of certificate programs for

ACG

**Regulatory Cite:** §691.2(d)

**Original Summary of Issue:** Section 401A(c)(3)(A) and 401A(c)(3)(B)
of the HEA, requires that an eligible student be enrolled or accepted
for enrollment in an undergraduate program at a two- or four-year
degree-granting institution of higher education to be eligible for an
ACG. Because the HEA requires a student to be enrolled or accepted for
enrollment in a program of undergraduate education at a degree-granting
institution of higher education, these programs appear to be intended to
assist students in attaining a degree. Section 691.2(d) defines an
eligible program in accordance with this understanding as not including
certificate programs while including the following as eligible:

-   ACG -- a program leading to an associate's or bachelor's degree, a
    two-academic year program acceptable for full credit toward a
    bachelor's degree, or a graduate degree program that includes at
    least three academic years of undergraduate education.

-   National SMART Grant Program -- a program leading to a bachelor's
    degree in an eligible major or a graduate degree program in an
    eligible major that includes at least three academic years of
    undergraduate education.

**Summary of Change:** There is no change.

Some committee members wanted the definition of an eligible program
modified to include certificate programs offered at two- or four-year
degree-granting institutions of higher education. Many believed that the
Secretary interpreted the law too narrowly by determining that only
programs leading to a degree are considered eligible programs. Some
believed the statute could also be interpreted to mean that eligible
students enrolled or accepted for enrollment in any undergraduate
program at two- or four-year degree-granting institutions of higher
education are eligible to receive an ACG.

If the definition of an eligible program is modified to include
certificate programs, the increase in the number of potentially eligible
students could have budgetary implications. Depending upon the
availability of funds in an award year, the Secretary may be required to
ratably reduce the ACG or National SMART Grant Scheduled Awards to
ensure that all students who are eligible receive a grant.

**Change:** None.

**Proposed Regulatory Language**

**Committee II --ACG/National SMART Grant**

**Issues**

**Origin:** ED

**Issue:** Requirement that Federal Pell Grants and

ACG or National SMART Grants be disbursed

at the same institution

**Regulatory Cite:** §691.11

**Original Summary of Issue:** Several requirements related to the
administration of the Federal Pell Grant Program and the ACG and
National SMART Grant programs appear to necessitate that the same
institution disburse funds from these programs for the same payment
periods. A student must receive a Federal Pell Grant disbursement in the
same award year in which the student receives an ACG or National SMART
Grant; an institution may pay only on the transaction that is the valid
Student Aid Report or valid Institutional Student Information Record
(ISIR) (and only the institution paying the Federal Pell Grant will know
which ISIR is the valid one); and institutions must report verification
records for the these three programs. Based on these factors, in the
very limited circumstances in which different institutions would choose
to administer and disburse funds from different title IV, HEA programs,
§691.11 currently mandates that the institution that chooses to disburse
Federal Pell Grant Program funds must also disburse the ACG and National
SMART Grant funds. Is it feasible to allow more than one institution to
disburse Federal Pell Grant and ACG or National SMART Grants for the
same payment periods? What if the payment periods differ, e.g., a
semester and a quarter?

**Summary of Change:** There is no change.

Since the administration of the ACG and National SMART Grant programs is
inextricably linked to the Federal Pell Grant Program, it is logical to
require the same institution that administers the Federal Pell Grant
Program also to administer the ACG and National SMART Grant programs in
a consortium arrangement. The discussion among the negotiators supported
the current regulatory language.

**Changes:** None.

**Proposed Regulatory Language**

# Committee II --ACG/National SMART Grant

**Issues**

**Origin:** ED

**Issue:** Grade Point Average (GPA) -- transfer students

**Regulatory Cite:** §691.15(b)(1), (c)(3), and (d)

**Original Summary of Issue:** In the case of a transfer student, for
the first payment period, institutions must rely on the grades of the
courses from the prior institution accepted toward the student's
eligible program. Once a student has the grades for a payment period at
the new institution for coursework taken toward the eligible program,
the institution may use the GPA calculated from those grades only,
unless there is an institutional policy that a student's GPA at the new
institution include transfer grades. Should there be any changes in the
treatment of a transfer student's GPA?

**Summary of Change:** Changes are being made to determining the GPAs of
transfer students for both programs.

For each of the two programs, the community expressed the need for
greater clarification of the GPA requirements for students who transfer.
The existing regulatory language is not clear enough regarding the
distinctions between the GPA requirements for a student who transfers
with less than two academic years of completed coursework versus the
student who transfers with at least two academic years of coursework. In
addition, clarification was requested for what was meant by "or the
equivalent" when discussing a GPA of at least 3.0 or higher on a 4.0
scale.

The proposed changes provide that, in the case of a transfer student,
the GPA to qualify for a second-year ACG is the cumulative GPA at the
end of the first academic year at the prior institution. In the case of
a student who transfers with at least two academic years of completed
coursework applicable to a degree program with a major eligible for the
National SMART Grant, the cumulative GPA is based on the GPA associated
with coursework applicable to the student's SMART-eligible program. The
proposed changes distinguish treatment of GPA for institutions that
incorporate into the GPA the grades for transferred coursework along
with the earned coursework at the institution to which the student
transferred, versus institutions that do not incorporate transferred
grades.

**Change:**

**§691.15 Eligibility to receive a grant.**

a\) General. A student who meets the requirements of 34 CFR part 668,
Subpart C, is eligible to receive an ACG or a National SMART Grant if
the student\--\
(1) Is a U.S. citizen;\
(2) Is receiving a Federal Pell Grant disbursement in the same award
year; and\
(3) Is enrolled full-time.

\(b\) ACG Program. (1) A student is eligible to receive an ACG if the
student\--\
(i) Meets the eligibility requirements in paragraph (a) of this
section;\
(ii) For the first academic year of his or her eligible program\--\
(A) Has successfully completed, after January 1, 2006, a rigorous
secondary school program of study recognized by the Secretary under Sec.
691.16; and\
(B) Has not previously been enrolled as a regular student in a program
of undergraduate education;\
(iii) For the second academic year of his or her eligible program\-- (A)
Has successfully completed, after January 1, 2005, a rigorous secondary
school program of study recognized by the Secretary under Sec. 691.16;
and\
(B) Has successfully completed the first academic year of his or her
eligible program; and\
(C) For the first academic year of his or her eligible program, obtained
a grade point average (GPA) of at least 3.0 or higher on a 4.0 scale, or
the equivalent [numeric measure]{.underline}, consistent with other
institutional measures for academic and title IV, HEA program purposes.

[(D) For a transfer student who has completed the first academic year
upon transfer, the GPA to determine second-year eligibility for an ACG
is the cumulative GPA obtained at the end of the first academic year at
any prior institution.]{.underline}

[(E) For a transfer student who has not completed the first academic
year upon transfer, the GPA to determine second-year eligibility for an
ACG is calculated when credits earned for coursework at prior
institutions combined with credits earned by coursework completed at the
current institution complete the student's first academic
year.]{.underline}

(2)(i) An institution must document a student\'s completion of a
rigorous secondary school program of study under paragraphs
(b)(1)(ii)(A) and (b)(1)(iii)(A) of this section using\--\
(A) Documentation provided directly to the institution by the cognizant
authority; or\
(B) Documentation from the cognizant authority provided by the student.\
(ii) If an institution has reason to believe that the documentation
provided by the student under paragraph (b)(2)(i)(B) of this section is
inaccurate or incomplete, the institution shall confirm the student\'s
completion of a rigorous secondary school program of study by using
documentation provided directly to the institution by the cognizant
authority.\
(3) For purposes of paragraph (b)(2) of this section\--\
(i) A cognizant authority includes, but is not limited to\--\
(A) An LEA;\
(B) An SEA or other State agency;\
(C) A public or private high school; or (D) A testing organization such
as the College Board or State agency; or\
(ii) For a home-schooled student, the student\'s parent or guardian is
the cognizant authority for purposes of providing the documentation
required under paragraph (b)(2)(i) of this section, of a rigorous
secondary school program under Sec. 691.16(d)(2), including a transcript
or the equivalent or a detailed course description listing the secondary
school courses completed by the student.\
(4) For a student who transfers from an eligible program at one
institution to an eligible program at another institution, the
institution to which the student transfers may rely upon the prior
institution\'s determination that the student completed a rigorous
secondary school program of study in accordance with paragraphs
(b)(1)(ii)(A) and (b)(1)(iii)(A) of this section based on documentation
that the prior institution may provide, or based on documentation of the
receipt of an ACG disbursement at the prior institution.

\(c\) National SMART Grant Program. A student is eligible to receive a
National SMART Grant for the third or fourth academic year of his or her
eligible program if the student\'\
(1) Meets the eligibility requirements in paragraph (a) of this
section;\
(2)(i)(A) In accordance with the institution\'s academic requirements,
formally declares an eligible major; or\
(B) If the institution\'s academic requirements do not allow a student
to declare an eligible major in time to qualify for a National SMART
Grant on that basis\--\
(1) Demonstrates his or her intention to declare an eligible major as
documented by the institution; and\
(2) Formally declares an eligible major as soon as allowed under the
institution\'s academic requirements; and (ii) Enrolls in the courses
necessary both to complete the degree program and to fulfill the
requirements of the intended eligible major;\
~~(3) Has a cumulative GPA through the most recently completed payment
period of at least 3.0 or higher on a 4.0 scale, or the equivalent,
consistent with other institutional measures for academic and title IV,
HEA program purposes, in the student\'s eligible program;\
(4) For the third academic year, has successfully completed the second
academic year of his or her eligible program; and\
(5) For the fourth academic year, has successfully completed the third
academic year of his or her eligible program.~~\
(3) [For the third academic year, has successfully completed the second
academic year of his or her eligible program;\
(4) For the fourth academic year, has successfully completed the third
academic year of his or her eligible program;]{.underline}

[(5) Has a cumulative GPA through the most recently completed payment
period of at least 3.0 or higher on a 4.0 scale, or the equivalent
numeric measure, consistent with other institutional measures for
academic and title IV, HEA program purposes, in the student\'s eligible
program; and]{.underline}

[(6)(i) If a student transfers from one institution to a subsequent
institution that ---]{.underline}

[(A) Does not incorporate grades from transfer coursework into the GPA
for the earned coursework at the subsequent institution, the subsequent
institution, for the courses accepted by that institution upon
transfer---]{.underline}

[(1) Must calculate the student's GPA for the first payment period of
enrollment using the grades earned by the student in the coursework from
any prior institution that it accepts towards the student's eligible
program; and]{.underline}

[(2) Must not incorporate the grades from the transferred courses into
the GPA for the earned coursework at the subsequent institution;
or]{.underline}

[(B) Incorporates grades from the transferred coursework into the GPA
for the earned coursework at the subsequent institution, the grades
assigned to the coursework accepted by the subsequent institution into
the eligible program shall be used as the student's cumulative GPA to
determine eligibility for the first payment period of enrollment and
beyond; or]{.underline}

[(ii) If the institution accepts no credits toward the student's
eligible program, consider the student to be ineligible until the
student completes at least one payment period in an eligible program
with a qualifying GPA.\
]{.underline}

~~(d) Transfer student\'s grade point average. Under the ACG and
National SMART Grant programs, if a student transfers from another
institution, the institution to which the student transfers\--\
(1) Must calculate the student\'s GPA for the student\'s first payment
period of enrollment using the grades earned by the student in the
coursework from any prior institution that it accepts towards the
student\'s eligible program; or\
(2) If the institution accepts no credits towards the student\'s
eligible program, must consider the student to be ineligible until the
student completes at least one payment period in an eligible program
with a qualifying GPA.\
~~(Authority: 20 U.S.C. 1070a-1)

**Proposed Regulatory Language**

**Committee II --ACG/National SMART Grant**

**Issues**

**Origin:** ED

**Issue:** GPA -- coursework

**Regulatory Cite:** §691.15(b)(1)(iii)(C), and (c)(3)

**Original Summary of Issue:** Section 401A(c)(3) of the HEA requires a
student to meet the necessary GPA only at the end of the student's first
academic year for an ACG, but throughout the student's third and fourth
academic years for a National SMART Grant. Accordingly, under
§691.15(b)(1)(iii), to receive a second-year ACG, the student must have
at least a 3.0 GPA for the student's first title IV academic year of
enrollment in an eligible program. Under §691.15 (c)(3), to receive a
National SMART Grant, a student must maintain at least a 3.0 cumulative
GPA through the most recently completed payment period in the coursework
required for a student's eligible program.

The GPA is calculated based on the grades in the courses of the
student's eligible program and in accordance with the same standards
that are used to calculate GPA for other academic and title IV purposes
at the institution. Should there be any changes in determining the
coursework used to calculate a student's GPA that would comply with the
statutory requirements?

**Summary of Change:** There is no change.

The GPA associated with eligible coursework is intended to cover any
ACG-eligible program coursework for the ACG program and any coursework
applicable to an eligible program leading to a degree in a
SMART-eligible major for the National SMART Grant program. The community
generally agreed that there was appropriate understanding of what
coursework was applicable when determining eligibility for each of the
programs.

**Change:** None

**Proposed Regulatory Language**

**Committee II --ACG/National SMART Grant**

**Issues**

**Origin:** ED

**Issue:** GPA -- timing of calculation

**Regulatory Cite:** §691.15(b)(1)(iii)(C), and (c)(3)

**Original Summary of Issue:** Section 401A(c)(3) of the HEA requires a
student to meet the necessary GPA only at the end of the student's first
academic year for an ACG, but throughout the student's third and fourth
academic years for a National SMART Grant. Accordingly, under
§691.15(b)(1)(iii), to receive a second-year ACG, the student must have
at least a 3.0 GPA for the student's first title IV academic year of
enrollment in an eligible program. Under §691.15 (c)(3), to receive a
National SMART Grant, a student must maintain at least a 3.0 cumulative
GPA through the most recently completed payment period in the coursework
required for a student's eligible program. Should there be any changes
in the time period for which a student's GPA is computed for a payment
period that would comply with the statutory requirements?

**Summary of Change:** A technical change is being made to clarify that
an equivalent GPA is a "numeric measure."

The community expressed concerns about the differences in timing of GPA
calculations between the two programs and the strict term-by-term review
of cumulative GPA for the National SMART Grants. In addition,
clarification was requested for what was meant by "or the equivalent"
when discussing a GPA of at least 3.0 or higher on a 4.0 scale.

Because the statutory language uses the following phrases, the community
asked if a different interpretation of when the student is meeting the
cumulative GPA threshold. For the ACG program, the statute states that
the student must have "*obtained a cumulative grade point average of at
least 3.0 (or the equivalent as determined under regulations prescribed
by the Secretary) at the end of the first academic year of such program
of undergraduate education"*. With the specific nature of the statutory
wording, there can be no change in the ACG regulations for this topic.

For the National SMART Grant program, the statute states that the
student must have *"obtained a cumulative grade point average of at
least 3.0 (or the equivalent as determined under regulations prescribed
by the Secretary) in the coursework required for the major".* The
community expressed the belief that there may be room to interpret an
equivalency with satisfactory academic progress monitoring. After
additional discussions, it was agreed that there would be no change to
the regulatory language on this topic for National SMART Grants either,
because in determining the eligibility for a payment period, which is
how these grants are determined, the appropriate cumulative GPA must be
obtained; the only way to ensure that is to check the cumulative GPA
from the most recently completed payment period.

**Change:**

[ACG:]{.underline}

\(iii\) For the second academic year of his or her eligible program---

\(A\) Has successfully completed, after January 1, 2005, a rigorous
secondary school program of study recognized by the Secretary under §
691.16; and

\(B\) Has successfully completed the first academic year of his or her
eligible program; and

\(C\) For the first academic year of his or her eligible program,
obtained a grade point average (GPA) of at least 3.0 or higher on a 4.0
scale, or the equivalent [numeric measure]{.underline}, consistent with
other institutional measures for academic and title IV, HEA program
purposes.

[National SMART Grant:]{.underline}

\(3\) Has a cumulative GPA through the most recently completed payment
period of at least 3.0 or higher on a 4.0 scale, or the equivalent
[numeric measure]{.underline}, consistent with other institutional
measures for academic and title IV, HEA program purposes, in the
student's eligible program;

**Proposed Regulatory Language**

**Committee II --ACG/National SMART Grant**

**Issues**

**Origin:** ED

**Issue:** GPA -- eligibility for disbursement

**Regulatory Cite:** §691.75(b)(2) and (3), (c), and (d)

**Original Summary of Issue:** Section 691.75(b)(2) and (3), (c), and
(d) specifies the requirements that govern an institution's
determination of a student's eligibility for a disbursement of an ACG or
National SMART Grant and are similar to those in §690.75 of the Federal
Pell Grant Program to the extent practicable. Similar to the Federal
Pell Grant Program requirements for determinations of a student's
satisfactory academic progress, the regulations have provisions for the
treatment of institutional determinations for a payment period regarding
changes in a student's GPA to provide institutions the flexibility to
reconsider a student's eligibility for an ACG or National SMART Grant
payment during a payment period depending on when grades are earned or
posted. Should there be any changes in determining a student's
eligibility for a payment period with respect to GPA?

**Summary of Change:** There is no change.

The community agreed that the existing regulatory language provided
appropriate flexibility for changes in GPA within a payment period.

**Change:** None.

**Proposed Regulatory Language**

**Committee II --ACG/National SMART Grant**

**Issues**

**Origin:** ED

**Issue:** Academic year progression

**Regulatory Cite:** §668.2(b), §691.2, and §691.6

**Original Summary of Issue:** The HEA requires that a student's
eligibility for an ACG or National SMART Grant is tied to the student's
progression of title IV, HEA academic years during the student's
undergraduate enrollment. Under the HEA, a student may be eligible for
an ACG during the first and second title IV, HEA academic years of the
student's undergraduate education and for a National SMART Grant during
the third and fourth academic years of the student's undergraduate
education. Using the title IV academic year requires institutions to
determine the student's progression in both credit or clock hours and
weeks of instructional time and differs from academic progression as
used in the loan programs that rely on grade level and, thus, require
only determinations regarding the student's standing in credit or clock
hours. Many institutions are not prepared to track a student's progress
in weeks of instructional time as well as credit or clock hours or
across the student's years of attendance in undergraduate education. Are
there additional changes possible to alleviate institutional burden?

**Summary of Change:** Changes are being made to reflect proposals
discussed during negotiated rulemaking.

During the initial discussions at negotiated rulemaking, there was
general agreement to revise §691.6 to provide alternative methods to
determine a student's progression in title IV, HEA academic years during
the student's enrollment in ACG and National SMART Grant eligible
programs. Proposals discussed included allowing traditional academic
calendar programs to count weeks based on the number of terms a student
has attended, employing grade level in some manner, and continuing all
of the guidance in the "Dear Colleague" letter GEN-06-18. There was
general agreement to reaffirm the right of a student to an exact audit
of the student's academic year standing based on attendance in all ACG
and National SMART Grant eligible programs.

**Change:**

**§691.6 Duration of student eligibility---undergraduate course of
study.**

\(a\) A student is eligible to receive up to one ACG Scheduled Award
during each of the student's first and second academic years of
enrollment over the course of the student's ~~undergraduate
education~~[enrollment at an institution]{.underline} in all eligible
programs as defined in §691.2(d).

\(b\) A student is eligible to receive up to one National SMART Grant
Scheduled Award during each of the student's third and fourth academic
years of enrollment over the course of the student's ~~undergraduate
education~~[enrollment at an institution]{.underline} in all eligible
programs as defined in §691.2(d).

\(c\) A student may not receive more than two ACG Scheduled Awards and
two National SMART Grant Scheduled Awards [during the student's
undergraduate education in all eligible programs]{.underline}.

~~(d) For an eligible student enrolled in a summer term of an eligible
program for which the institution determines payments under §691.63(b)
and (c), the student's summer term is considered to be---~~

~~(1) For an eligible program offered in semesters or trimesters with a
single summer term that provides at least 12 semester or trimester hours
of coursework, one-half of an academic year in weeks of instructional
time under §691.63(b)(3)(i) and (c)(4)(i), or one-third of an academic
year in weeks of instructional time under §691.63(b)(3)(ii) and
(c)(4)(ii); or~~

~~(2) For an eligible program offered in quarters with a single summer
term that provides at least 12 quarter hours of coursework, one- third
of an academic year in weeks of instructional time under
§691.63(b)(3)(i) and (c)(4)(i), or one-fourth of an academic year in
weeks of instructional time under §691.63(b)(3)(ii) and (c)(4)(ii).~~

(d)(1) Credit or clock hours earned by a student must be considered
towards a student's completion of the credit or clock hours of an
academic year if the institution accepts those hours towards the
student's eligible program if the credits or hours are earned ---

[(i) From Advanced Placement (AP) tests, International Baccalaureate
(IB) tests, testing out, life experience, or similarl competency
measures; or]{.underline}

[(ii) At an institution while not enrolled as a regular student in an
eligible program.]{.underline}

[(2) An institution may not assign any weeks of instructional time to
credit or]{.underline} [clock hours]{.underline} [accepted]{.underline}
[towards meeting]{.underline} [the student's eligible program that the
student earns---]{.underline}

[(i) From Advanced Placement (AP) tests, International Baccalaureate
(IB) tests, testing out, life experience, or similar]{.underline}
[competency measures; or]{.underline}

[(ii) At a]{.underline} [postsecondary institution while not enrolled as
a regular student in an eligible program.]{.underline}

[(3) Credits or clock hours awarded for coursework that is not at the
postsecondary level, such as remedial coursework, may not be considered
in determining the hours that a student has completed in an academic
year.]{.underline}

[(4) For a transfer student, an institution determining the amount of
credit or]{.underline} [clock hours completed by the student shall
count]{.underline} [\--]{.underline}

[(i) The number of credit or]{.underline} [clock hours]{.underline}
[accepted on transfer into the student's eligible program;
and]{.underline}

[(ii) For weeks of instructional time, except as prohibited in
(g)(**[~~iv~~4]{.mark}**),]{.underline} [the proportion of those credits
or]{.underline} [clock hours accepted on transfer are to the hours and
weeks of instructional time of the eligible program's academic
year.]{.underline}

[(e) An institution may determine a student's progression in the weeks
of instructional time of an academic year under the alternatives to an
exact accounting **[as]{.mark}** provided for eligible programs
**[under]{.mark}** paragraphs (f), (g), and (h) of this section **[if
the institution\--]{.mark}**]{.underline}

[(1) **[~~The institution p~~P]{.mark}**rovides to the
student]{.underline} [an exact accounting of the student's academic year
progression based on the actual weeks of instructional time a student
has attended in all eligible programs at the institution if the student
either requests a determination or questions whether he or she has
completed one or more academic years; **[~~and~~]{.mark}**]{.underline}

[(2) **[~~The institution d~~D]{.mark}**etermines payments for the
student's eligible program under §691.63(b) or (c)**[;
and]{.mark}**]{.underline}

[]{.mark}

**[(3) Applies the same alternative under paragraph (f), (g), or (h) to
all students enrolled in the eligible program except as provided in
paragraph (e)(1) of this section.]{.mark}**

(f)(1) For an eligible program for which the institution may determine
payments under §691.63(b) or (c), an institution may determine a
student's completion of the weeks of instructional time in an academic
year under the procedures set forth in paragraph (f)(2) and (f)(3) of
this section.

[(2) For an eligible student enrolled in an eligible program that has a
single summer term that provides at least 12 semester, trimester, or
quarter hours of coursework and for which payments are calculated under
§691.63(b), the student's term is considered to be---]{.underline}

[(i) For an eligible program offered in semesters or trimesters,
one-half of an academic year in weeks of instructional time if payments
may be determined under §691.63(b)(3)(i), or one-third of an academic
year in weeks of instructional time if payments may be determined under
§691.63(b)(3)(ii); or]{.underline}

[(ii) For an eligible program offered in quarters that has a single
summer term, one-third of an academic year in weeks of instructional
time if payments may be determined under §691.63(b)(3)(i), or one-fourth
of an academic year in weeks of instructional time if payments may be
determined under §691.63(b)(3)(ii).]{.underline}

[(3) For an eligible student enrolled in an eligible program with a
single summer term that provides at least 12 semester, trimester, or
quarter hours of coursework for which the institution may determine
payments under §691.63(c), the student's term is considered to
be---]{.underline}

[(i) For an eligible program offered in semesters or trimesters,
one-half of the weeks of instructional time in the fall through spring
terms if payments may be determined under §691.63(c)(4)(i), or one-third
of an academic year in weeks of instructional time if payments may be
determined under §691.63(c)(4)(ii); or]{.underline}

[(ii) For an eligible program offered in quarters, one-third of the
weeks of instructional time in the fall through spring terms if payments
may be determined under §691.63(c)(4)(i), or one-fourth of an academic
year in weeks of instructional time if payments may be determined under
§691.63(c)(4)(ii).]{.underline}

[(g)(1) Except as provided in paragraph (g)(4) of this section, an
institution with an eligible program for which the institution may
determine payments under §§691.63(b) or 691.63(c) may determine a
student's completion of the weeks of instructional time in an academic
year under the procedures set forth in paragraph (g)(2)]{.underline}
[or]{.underline} [(g)(3) of this section.]{.underline}

[(2) For an eligible student enrolled in an eligible program for which
payments may be determined under §691.63(b), the student is considered
to complete an academic year in weeks of instructional time upon
completion of the credit]{.underline} [hours that were taken during
that]{.underline} [academic year.]{.underline}

[(3) For an eligible student enrolled in an eligible program for which
payments may be determined under §691.63(c), trimester, or quarter hours
of coursework, the student is considered to complete the weeks of
instructional time in the fall through spring terms upon completion of
the credit]{.underline} [hours that were taken during that]{.underline}
[academic year.]{.underline}

[(4) In determining weeks of instructional time for purposes of
paragraph (g)(2) and (3), an institution may not consider credits
towards the student's eligible program that the student earns from AP
tests, IB tests, testing out, life experience, or other similarly earned
credits or credits earned while not enrolled as a regular student in an
eligible program.]{.underline}

[(h)(1) Except as provided in paragraph (h)(2) of this section, a
student at a grade level can be assumed to have completed a title IV
academic year for each of the prior grade levels if for each grade level
of a student's eligible program---]{.underline}

[(i) A student]{.underline} [has]{.underline} [completed at least the
minimum]{.underline} [credit hours for the prior]{.underline} [academic
years for that program]{.underline} [in accordance with this section;
and]{.underline}

[(ii) Most full-time students in the student's eligible program complete
the **[~~hours~~ weeks of instructional time]{.mark}** of an academic
year]{.underline} [during the period of completing each grade
level.]{.underline}

[(2) In determining grade level for a particular student
for]{.underline} [purposes of paragraph (h)(1), an institution may not
consider credits towards the student's eligible program that the student
earns from AP tests, IB tests, testing out, life experience, or other
similarly earned credits or credits earned while not enrolled as a
regular student in an eligible program.]{.underline}

**Proposed Regulatory Language**

**Committee II --ACG/National SMART Grant**

**Origin:** Community

**Issue:** Interpreting prior enrollment -- dual enrollment and early
college programs

**Regulatory Cite:** §691.15(b)(1)(ii)(B)

**Original Summary of Issue:** Section 401A(c)(3)(A)(ii) of the HEA
provides that a student is eligible for a first-year Academic
Competitiveness Grant (ACG) if the student "has not been previously
enrolled in a program of undergraduate education".

Under the July 3, 2006 interim final regulations, the Department
basically repeated the statutory language with the understanding that a
student was eligible for a first-year ACG if the student had not been
previously enrolled in any eligible or ineligible undergraduate
educational program as a regular student, i.e., is a student enrolled
for the purpose of getting a degree or certificate.

Based on public comment and further consideration of the statutory
provision, the language was changed in the November 1, 2006, final
regulations to restrict the applicability of the provision by providing
that a student is eligible for a first-year ACG if the student has not
previously enrolled as a regular student in an ACG eligible program
while enrolled in high school. Thus, a student would be eligible after
graduating from high school even if---

-   While in high school, the student enrolled in an ACG ineligible
    program, e.g., a certificate program, or postsecondary courses
    without being admitted as a regular student; or

-   After high school, the student was enrolled in an ACG eligible
    program as long as the student had not completed his or her first
    academic year of enrollment in an eligible program.

Under the current regulations, students enrolled in dual-credit and
early college programs may be eligible if they are not admitted while in
high school as a regular student in an eligible program.

**Summary of Change**: A change is being made to the draft language that
would extend eligibility to students who may enroll in an ACG eligible
program while in high school so long as they are beyond the age of
compulsory school attendance.

There was some discussion narrowing the scope of the statute to avoid
disqualifying students who may be enrolled in early college programs and
some dual enrollment programs. The discussion noted current restrictions
on postsecondary institutions that limit an eligible institution from
admitting most high school students. No specific proposed change was
discussed, although some examples were raised of potential problems
under the current regulations. Based upon these discussions, the
Department is considering a change to the current regulations that would
not disqualify a student for a first-year ACG award who had enrolled in
an ACG eligible program while in high school, so long as the student was
above the age of compulsory school attendance at the time and never
received Federal student aid funds while in high school. Since the
student could not qualify for any Federal student aid funds while
enrolled in high school, the enrollment would not disqualify the student
for ACG at a later date. This position conforms with the institutional
eligibility requirement that an institution may admit as regular
students only persons who have a high school diploma or the equivalent
or who are beyond the age of compulsory school attendance.

**Change:**

**§691.15 Eligibility to receive a grant.**

\* \* \* \* \*

\(b\) *ACG Program*. (1) A student is eligible to receive an ACG if the
student---

\(i\) \* \* \*

\(ii\) For the first academic year of his or her eligible program---

\(A\) Has successfully completed, after January 1, 2006, a rigorous
secondary school program of study recognized by the Secretary under
§691.16; and

\(B\) Has not previously been enrolled as a regular student in an
eligible program while\--

> (*1*) Enrolled in high school; and
>
> (*2*) Being at or below the age of compulsory school attendance;

**Proposed Regulatory Language**

**Committee II --ACG/National SMART Grant**

# Issues

**Origin:** Community

**Issue:** Eligible majors and CIP codes expansion

**Regulatory Cite:** §691.17

**Original Summary of Issue:** Section 401A(c)(3)(C)(i) of the HEA
provides that a student may receive a National SMART Grant if the
student is pursuing a major, as determined by the Secretary, in the
physical, life, or computer sciences, mathematics, technology,
engineering, or a critical foreign language. Section 691.17(a) of the
regulations provides that, for each award year, the Secretary identifies
the eligible majors in the majors within each designated field. Should
the regulations be modified to include a process by which the Secretary
may expand the list of identified eligible majors as well as their
associated CIP codes within each designated major field (physical, life,
or computer sciences, mathematics, technology, engineering, or a
critical foreign language)?

**Summary of Change:** The change provides a transparent process by
which institutions of higher education can request additional majors to
be added to the list of eligible majors for an award year.

**Change:**

§691.17 Determination of eligible majors.

\(a\) *Eligible major*. For each award year, the Secretary identifies
the eligible majors in the physical, life, or computer sciences,
mathematics, technology, engineering, or, as determined under paragraph
(b) of this section, critical foreign languages.

\(b\) *Critical foreign languages*. For each award year, the Secretary
identifies the foreign languages that are critical to the national
security of the United States after consulting with the Director of
National Intelligence.

[(c) *Designation of Eligible Majors.* For each award year, the
Secretary publishes a list of eligible majors identified by the
Classification of Instructional Programs (CIP) code.]{.underline}

[(d) *Designation of* *an Additional Eligible Major.* For each award
year, the Secretary establishes a deadline for an institution to request
designation of an additional eligible major.]{.underline}

[(1) Requests for designation of an additional eligible major must
include---]{.underline}

[(i) The CIP code of the additional major;]{.underline}

[(ii) The reason(s) the institution believes the additional major should
be considered eligible under the statute; and]{.underline}

[(iii) Documentation that an institution has actually awarded or plans
to award a bachelor's degree in the requested major.]{.underline}

[(2) For each award year that at least one additional major is
designated, the Secretary will publish an updated list of eligible
majors.]{.underline}

(e~~c~~) *Duration of eligible major*. A major that ceases to be listed
as an eligible major under paragraph (a) of this section for an award
year remains an eligible major in subsequent award years for a student
who pursues that major and receives a National SMART Grant in the award
year in which the major was an eligible major.

# Proposed Regulatory Language

**Committee II --ACG/National SMART Grant**

**Issues**

**Origin:** Community

**Issue:** Institutional flexibility in determining timing of student
declaration of eligible major

**Regulatory Cite:** §§691.15(c)(2)(i)(B), 691.15(c)(2)(ii)

**Original Summary of Issue:** Section 401A(c)(3)(C) of the HEA provides
that a student enrolled or accepted for enrollment in the third or
fourth academic year of a program of undergraduate education may receive
a National SMART Grant if the student is pursuing a major, as determined
by the Secretary, in the physical, life, or computer sciences,
mathematics, technology, engineering, or a critical foreign language.
Section 691.15(c)(2)(i)(A) requires that, to receive a National SMART
Grant, an otherwise eligible student must formally declare an eligible
major in accordance with the institution's academic requirements. If the
institution's academic requirements do not allow a student to declare an
eligible major in time to qualify for a National SMART Grant, section
691.15(c)(2)(i)(B) of the regulations provides that, if otherwise
eligible, a student can still qualify for a National SMART Grant if he
or she demonstrates intention to declare an eligible major as documented
by the institution, formally declares an eligible major as soon as the
institution's academic requirements allow, and enrolls in courses
necessary both to complete the degree program as well as to fulfill the
requirements of the intended eligible major. Are there any additional
institutional flexibilities by which a student could be determined to be
pursuing an eligible major when the institution's academic requirements
do not allow declaration of an eligible major in time for the student to
qualify for a National SMART Grant?

**Summary of Change:** The proposed changes provide a transparent
procedure to validate student intent to declare an eligible major.
Validation of student intent is determined to consist of two components.
The first component consists of a written declaration of intent provided
by the student. The second component consists of written documentation
of institutional monitoring of student coursework progression in the
student's intended eligible major. The two components together document
student intent to declare an eligible major.

**Change:**

**§691.15 Eligibility to receive a grant.**

\(a\) *General*. A student who meets the requirements of 34 CFR part
668, Subpart C, is eligible to receive an ACG or a National SMART Grant
if the student---

\(1\) Is a U.S. citizen;

\(2\) Is receiving a Federal Pell Grant disbursement in the same award
year; and

\(3\) Is enrolled full-time.

\(b\) *ACG Program*. (1) A student is eligible to receive an ACG if the
student---

\(i\) Meets the eligibility requirements in paragraph (a) of this
section;

\(ii\) For the first academic year of his or her eligible program---

\(A\) Has successfully completed, after January 1, 2006, a rigorous
secondary school program of study recognized by the Secretary under
§691.16; and

\(B\) Has not previously been enrolled as a regular student in an
eligible program while enrolled in high school;

\(iii\) For the second academic year of his or her eligible program---

\(A\) Has successfully completed, after January 1, 2005, a rigorous
secondary school program of study recognized by the Secretary under
§691.16; and

\(B\) Has successfully completed the first academic year of his or her
eligible program; and

\(C\) For the first academic year of his or her eligible program,
obtained a grade point average (GPA) of 3.0 or higher on a 4.0 scale, or
the equivalent, consistent with other institutional measures for
academic and title IV, HEA program purposes.

(2)(i) An institution must document a student\'s completion of a
rigorous secondary school program of study under paragraphs
(b)(1)(ii)(A) and (b)(1)(iii)(A) of this section using---

\(A\) Documentation provided directly to the institution by the
cognizant authority; or

\(B\) Documentation from the cognizant authority provided by the
student.

\(ii\) If an institution has reason to believe that the documentation
provided by the student under paragraph (b)(2)(i)(B) of this section is
inaccurate or incomplete, the institution shall confirm the student\'s
completion of a rigorous secondary school program of study by using
documentation provided directly to the institution by the cognizant
authority.

\(3\) For purposes of paragraph (b)(2) of this section---

\(i\) A cognizant authority includes, but is not limited to---

\(A\) An LEA;

\(B\) An SEA or other State agency;

\(C\) A public or private high school; or

\(D\) A testing organization such as the College Board or State agency;
or

\(ii\) For a home-schooled student, the student\'s parent or guardian is
the cognizant authority for purposes of providing the documentation
required under paragraph (b)(2)(i) of this section, of a rigorous
secondary school program under §691.16(d)(2), including a transcript or
the equivalent or a detailed course description listing the secondary
school courses completed by the student.

\(4\) For a student who transfers from an eligible program at one
institution to an eligible program at another institution, the
institution to which the student transfers may rely upon the prior
institution\'s determination that the student completed a rigorous
secondary school program of study in accordance with paragraphs
(b)(1)(ii)(A) and (b)(1)(iii)(A) of this section based on documentation
that the prior institution may provide, or based on documentation of the
receipt of an ACG disbursement at the prior institution.

\(c\) *National SMART Grant Program*. A student is eligible to receive a
National SMART Grant for the third or fourth academic year of his or her
eligible program if the student---

\(1\) Meets the eligibility requirements in paragraph (a) of this
section;

(2)(i)(A) In accordance with the institution\'s academic requirements,
formally declares an eligible major; or

\(B\) If the institution\'s academic requirements do not allow a student
to declare an eligible major in time to qualify for a National SMART
Grant on that basis [demonstrates his or her intention to declare an
eligible major ~~as documented by the institution, and~~ in accordance
with paragraph (d) of this section; and]{.underline}

[(ii) Contemporaneously, as determined by the institution, enrolls in
the courses necessary both to complete the degree program and to fulfill
the requirements of the intended eligible major as documented in
accordance with paragraph (e) of this section;]{.underline}

[(3) Has a cumulative GPA through the most recently completed payment
period of 3.0 or higher on a 4.0 scale, or the equivalent numeric
measure, consistent with other institutional measures for academic and
title IV, HEA program purposes, in the student\'s eligible
program;]{.underline}

[(4) For the third academic year, has successfully completed the second
academic year of his or her eligible program; and]{.underline}

[(5) For the fourth academic year, has successfully completed the third
academic year of his or her eligible program.]{.underline}

[(d) A student---]{.underline}

[(1) Demonstrates his or her intention to declare an eligible major by
providing a written declaration such as, but not limited
to\--]{.underline}

[(i) Self-certification of intent to major in an eligible major signed
by the student; or]{.underline}

\(ii\) Other signed student declaration of intent to major in an
eligible major; and

[(2) Formally declares an eligible major as soon as allowed under the
institution\'s academic requirements.]{.underline}

[(e) Documentation of coursework progression in the eligible program and
major may include, but is not limited to---]{.underline}

[(i) Written counselor or advisor tracking of coursework progress toward
a degree in the intended eligible major at least annually;]{.underline}

[(ii) Written confirmation from the academic department that the student
is progressing in coursework leading to a degree in the intended
eligible major signed by a departmental representative for the intended
eligible major at least annually; or]{.underline}

[(iii) Other written documentation of coursework that satisfies the
ongoing nature of monitoring student coursework progression in the
intended eligible major at least annually.]{.underline}

\(ii\) Enrolls in the courses necessary both to complete the degree
program and to fulfill the requirements of the intended eligible major;

\(3\) Has a cumulative GPA through the most recently completed payment
period of 3.0 or higher on a 4.0 scale, or the equivalent, consistent
with other institutional measures for academic and title IV, HEA program
purposes, in the student\'s eligible program;

~~(4) For the third academic year, has successfully completed the second
academic year of his or her eligible program; and~~

\(5\) For the fourth academic year, has successfully completed the third
academic year of his or her eligible program.

([f]{.underline}~~e~~) *Transfer student\'s grade point average*. Under
the ACG and National SMART Grant programs, if a student transfers from
another institution, the institution to which the student transfers---

\(1\) Must calculate the student\'s GPA for the student\'s first payment
period of enrollment using the grades earned by the student in the
coursework from any prior institution that it accepts towards the
student\'s eligible program; or

\(2\) If the institution accepts no credits towards the student\'s
eligible program, must consider the student to be ineligible until the
student completes at least one payment period in an eligible program
with a qualifying GPA.

**Proposed Regulatory Language**

#### Committee II -- ACG/National SMART Grant

# Issues

**Origin:** Community

**Issue:** Completion of a Rigorous Secondary School

Program of Study

**Regulatory Cite:** §691.15(b)

**Original Summary of Issue:** Section 401A(c)(3)(A)(i) and (B)(i) of
the HEA requires that, to receive an ACG, a student must have
"successfully completed", that is, graduated from, a rigorous secondary
school program of study, as recognized by the Secretary. The regulations
provide that an institution is required to document a student\'s
completion of a rigorous secondary school program of study using
documentation from the appropriate cognizant authority provided by that
authority or the student. However, the ACG regulations do not
specifically indicate that a student must have graduated from high
school and

in the case of home school students, obtained a secondary school
completion credential or completed a secondary school education in a
home school setting that qualifies as an exemption from the compulsory
attendance requirements under State law.

**Summary of Change:** The regulations are clarified to provide that in
order for a student to be eligible for an ACG, a student must complete a
secondary school education by receiving a high school diploma or, for
home-schooled students, the certification of completion of a secondary
school education by the cognizant authority in addition to successfully
completing a rigorous secondary school program of study.

**Change:**

§691.15 Eligibility to receive a grant.

\* \* \* \* \*

\(b\) ACG Program. (1) A student is eligible to receive an ACG if the
student\--

\(i\) Meets the eligibility requirements in paragraph (a) of this
section;

\(ii\) For the first academic year of his or her eligible program\--

[(A) Has received a high school diploma or for a home-schooled student
the certification of completion of a secondary school education by the
cognizant authority;]{.underline}

[(B)~~(A)~~]{.underline} Has successfully completed, after January 1,
2006, a rigorous secondary school program of study recognized by the
Secretary under §691.16; and

[(C)~~(B)~~]{.underline} Has not previously been enrolled as a regular
student in an eligible program while enrolled in high school**;**

\(iii\) For the second academic year of his or her eligible program---

[(A) Has received a high school diploma or for a home-schooled student
the certification of completion of a secondary school education by the
cognizant authority;]{.underline}

[~~(A)~~(B)]{.underline} Has successfully completed, after January 1,
2005, a rigorous secondary school program of study recognized by the
Secretary under §691.16; and

[~~(B)~~(C)]{.underline} Has successfully completed the first academic
year of

his or her eligible program; and

[~~(C)~~(D)]{.underline} For the first academic year of his or her
eligible program, obtained a grade point average (GPA) of 3.0 or higher
on a 4.0 scale, or the equivalent numeric measure, consistent with other
institutional measures for academic and title IV, HEA program purposes.

(2)(i) An institution must document a student\'s completion of a
[secondary school education and a]{.underline} rigorous secondary school
program of study under paragraphs (b)(1)(ii)(A[), (b)(1)(ii)(B),
(b)(1)(iii)(A)]{.underline} and (b)(1)(iii)[~~(A)~~(B)]{.underline} of
this section using\--

\(A\) Documentation provided directly to the institution by the
cognizant authority; or

\(B\) Documentation from the cognizant authority provided by the
student.

\(ii\) If an institution has reason to believe that the documentation
provided by the student under paragraph (b)(2)(i)(B) of this section is
inaccurate or incomplete, the institution shall confirm the student\'s
completion of, and graduation from, a rigorous secondary school program
of study by using documentation provided directly to the institution by
the cognizant authority.

\(3\) For purposes of paragraph [(b)~~(2)~~]{.underline} of this
section\--

\(i\) A cognizant authority includes, but is not limited to\--

\(A\) An LEA;

\(B\) An SEA or other State agency;

\(C\) A public or private high school; or

\(D\) A testing organization such as the College Board or

State agency; or

\(ii\) For a home-schooled student, the student\'s parent or guardian is
the cognizant authority for purposes of providing the documentation
required under paragraph (b)~~[(2)(i)]{.underline}~~ of this section, of
[~~a~~ successfully completing, and graduating from, a]{.underline}
rigorous secondary school program under §691.16(d)(2), including a
transcript or the equivalent or a detailed course description listing
the secondary school courses completed by the student.

\(4\) For a student who transfers from an eligible program at one
institution to an eligible program at another institution, the
institution to which the student transfers may rely upon the prior
institution\'s determination that the student completed, and graduated
from, a rigorous secondary school program of study in accordance with
paragraphs (b)(1)(ii)(A)[, (b)(1)(ii)(B), (b)(1)(iii)(A),]{.underline}
and (b)(1)(iii)[(B)~~(A)~~]{.underline} of this section based on
documentation that the prior institution may provide, or based on
documentation of the receipt of an ACG disbursement at the prior
institution.

**Proposed Regulatory Language**

**Committee II --ACG/National SMART Grant**

# Issues

**Origin:** Community

**Issue:** Departmental monitoring of student

disbursements

**Regulatory Cite:** None

**Original Summary of Issue:** Under section 401A(c)(3)(A), (B), and (C)
of the HEA, a student's eligibility for the ACG and National Smart Grant
programs is for one grant for each of his or her first, second, third,
or fourth academic years of enrollments in an eligible program. A
student may complete an academic year as a less-than-full-time student
and, therefore, never receives a grant for that academic year. Should
the regulations be amended by requiring the Secretary to provide
information to participating institutions concerning a student's
disbursements by academic year award?

**Summary of Change:** There is no regulatory change.

Federal Student Aid (FSA) is interested in using this process to help
identify systems changes that may be needed to assist schools in
administering the ACG and National SMART Grant Programs. Beginning with
the 2007-08 processing year, FSA has instituted some systems changes to
help institutions track ACG/SMART eligibility. New definitions have been
added to the National Student Loan Data System (NSLDS) to ensure that
the system will not edit on the grade level discrepancy that could occur
in a student's record between loans and ACG/SMART grants. As part of its
systems development, FSA is researching whether or not ACG and SMART
disbursements will be included on all future MRRs. Also, FSA is
evaluating adding comment codes regarding a student's remaining
eligibility for an ACG or National SMART Grant for the 2008-09
application processing year as well as whether to add a COD data element
to indicate what percentage of remaining eligibility a student has for
an academic level. Currently, FSA does not plan to track ACG/SMART
denial reasons and will therefore not require schools to submit this
information.