# Presentation: 773482

- Webinar for High School and 		TRIO counselors
- March 2007

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

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

- National Science and Mathematics
- Access to Retain Talent Grant (National SMART)

- Academic Competitiveness Grant (ACG)

**ACG and National Smart Grant**

**Notes:**
Two new grant programs to assist eligible students in paying college education expenses.  Regulations for these programs are in 34 CFR 691 and duplicate the Pell Grant regulations to the extent practicable. That is appropriate, in that each recipient of the new grant programs must be a Pell Grant recipient.

Congress has appropriated $790 million dollars for the 2006-2007 award year, requested $850 million for the 2007-2008 award year, and increased amounts for the three year thereafter.

## FSA For Counselors

- Grants

- _[www.fsa4counselors.ed.](http://www.fsa4counselors.ed.gov/)__[gov](http://www.fsa4counselors.ed.gov/)_

## Grants

- Link to Fact Sheet

## Fact Sheet for ACG and SMART Grants

- _Authorization and Funding_
- Funding 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, rateable reduction.
- - No reduction for 2006-07
- - Funds not spent in one year are carried over to subsequent years.

**Common to Both Programs**

**Notes:**
Turning to Budget Reconciliation.  This slide shows a brief chronology.  The Conference Report passed the House by a narrow margin in December 212-206.  It passed the Senate in slightly different form by a vote of 51-50 with Vice President Cheney casting the deciding vote.  Since there were differences, it had to go back to the House who passed the Senate version on February 1 by an even narrower margin of    .  President Bush signed the bill into law on Wednesday, February 8, 2006.

The law makes $39.7 billion in budget cuts to mandatory programs, including $12.7 billion from student loans.  The Administration is happy with HERA—particularly with the new programs that supplement the Pell Grant Program by providing additional grant aid to the neediest students, and the reduction of excess subsidies in the FFEL program.  HERA generally achieves the Administration’s key objectives for reauthorization of the HEA as set forth in last year’s budget proposals of—

Making the student loan programs more efficient and cost-effective, increasing student benefits, and reducing cost to the taxpayer through expanded risk-sharing with schools and lenders.

## Award amounts are announced by the Secretary for each Academic year .
These are the amounts for Academic year 0607
ACG – 
 First Academic Year - $750
 Second Academic Year - $1,300

National SMART Grant –
$4,000 per year for each of the student’s 	third and fourth academic year of undergraduate study

- These are the amounts for Academic year 0607
- ACG –
-  First Academic Year - $750
-  Second Academic Year - $1,300
- National SMART Grant –
- $4,000 per year for each of the student’s 	third and fourth academic year of undergraduate study

**Common to Both Programs**

**Notes:**
Turning to Budget Reconciliation.  This slide shows a brief chronology.  The Conference Report passed the House by a narrow margin in December 212-206.  It passed the Senate in slightly different form by a vote of 51-50 with Vice President Cheney casting the deciding vote.  Since there were differences, it had to go back to the House who passed the Senate version on February 1 by an even narrower margin of    .  President Bush signed the bill into law on Wednesday, February 8, 2006.

The law makes $39.7 billion in budget cuts to mandatory programs, including $12.7 billion from student loans.  The Administration is happy with HERA—particularly with the new programs that supplement the Pell Grant Program by providing additional grant aid to the neediest students, and the reduction of excess subsidies in the FFEL program.  HERA generally achieves the Administration’s key objectives for reauthorization of the HEA as set forth in last year’s budget proposals of—

Making the student loan programs more efficient and cost-effective, increasing student benefits, and reducing cost to the taxpayer through expanded risk-sharing with schools and lenders.

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

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

-  _Institutional Participation_

**Common to Both Programs**

## ACG and National SMART are 
Separate and Distinct Programs

Some Similarities
Pell Recipient
U.S. Citizen
Fulltime
ED established funding levels
Need based

- Separate and Distinct Programs
- Some Similarities
- Pell Recipient
- U.S. Citizen
- Fulltime
- ED established funding levels
- Need based

**Common to Both Programs**

## Common to Both Programs

-            Cost of Attendance (COA)
-        -   _Expected Family Contribution (EFC)_
-        =  Need

## Academic Competiveness Grant (ACG)

**Academic Competiveness Grant (ACG)**

## U.S. citizen
Federal Pell Grant recipient for same academic year
First or second year student in a two or four year degree program
Full-time enrollment

- Federal Pell Grant recipient for same academic year
- First or second year student in a two or four year degree program
- Full-time enrollment

**ACG Eligibility Requirements**

**Notes:**
34 CFR 691.15

Student must meet all general Title IV eligibility requirements.  Please note that the National SMART recipients must be U.S. citizens.  Eligible non-citizens are not eligible.

Federal Pell Grant Recipient
As is the case with AGG, a student must receive a Pell Grant disbursement for the same payment period for which a National SMART Grant disbursement is made.  

Third or Fourth Year Student 
As is also the case with ACG, duration of a student’s eligibility is tied to specific academic years of a student’s undergraduate education rather than award years or completion of a bachelor’s degree (as is the case with Pell Grant).  A student is eligible to receive one National SMART Grant for each of the third and fourth academic years of a bachelor’s degree program. The regulations include as an eligible bachelor’s degree program a program that leads to a graduate degree, but includes at least three years of undergraduate study.   An example would be a pharmacy program that leads to a master’s degree.  The student never receives a bachelor’s degree, but does have at least three years of undergraduate study.   Academic Year discussed on upcoming slide.

Cumulative 3.0 GPA
Statute refers to a 3.0 GPA in courses required for a student’s major which may cause some confusion where application of a cumulative GPA is concerned. ED has determined that all the courses of a student’s eligible program are courses required for the student’s major.  Accordingly, a student must meet the GPA requirement based on all the courses required for the student’s eligible program. 

## 1st year students
May not have been previously enrolled as a regular student in a program of undergraduate education
Have completed secondary school program of study after January 1, 2006 
2nd year students
Have graduated from secondary school program of study after January 1, 2005
Have a 3.0 G.P.A. in an eligible program from 1st Title IV academic year

- May not have been previously enrolled as a regular student in a program of undergraduate education
- Have completed secondary school program of study after January 1, 2006
**2****nd**** year students**
- Have graduated from secondary school program of study after January 1, 2005
- Have a 3.0 G.P.A. in an eligible program from 1st Title IV academic year

**ACG Eligibility Requirements**

**Notes:**
34 CFR 691.15

Not Previously Enrolled
First year ACG recipients may not have been previously enrolled in a program of undergraduate education.  This means that a student may have taken courses at a postsecondary institution, but must not have been admitted as a regular student in a previous eligible program. 
Examples for clarification:  If student was admitted as regular student in an eligible program of study for summer term (did not receive ACG) and remains at the same school in same program of study in the fall, student may receive ACG in the fall.
If student was admitted as a regular student in an eligible program of study for summer term (did not receive ACG) and changes schools for fall term, that summer program counts as a previous program of study and the student would not be ACG eligible in the fall term.

High School Completion Date 
The requirement that an ACG recipient have completed a rigorous secondary school program of study recognized by the Secretary under 34 CFR 691.16 by the dates noted on the slide pertains to both first and second year students.  These dates do not roll each year.

A student who graduated from high school in 2005 and begins college as first year student in the fall 2006, cannot receive a first year ACG grant because his high school graduation date is prior to 1/01/06.

A student who will be a second year student in the fall 2006 may receive a second year ACG if he/she graduated from high school after 1/01/05 in a rigorous high school program, and meets all other eligibility requirements.  These students would also have to have at least a 3.0 GPA at the end of the first year of study.

## ACG requires graduation from a rigorous secondary school program 
ED has outlined options to meet requirement in DCL GEN-06-08

- ED has outlined options to meet requirement in DCL GEN-06-08

**Rigorous Secondary School Program**

**Notes:**
34 CFR 691.15(b)

Rigorous Secondary School Program of Study
Statute requires that “the Secretary shall recognize at least one rigorous program of study in each state...”  As an initial step, and because of condensed timeframes, all existing Advanced or Honors diploma programs have recognized as rigorous secondary school programs of study.  
States wishing to establish an alternative rigorous secondary program of study must submit proposals to the Department by the deadline established by the Secretary for each award year.  State Educational Associations (SEAs) had until June 1, 2006 to submit proposals for 2006-2007.  39 states met that deadline.  States have until November 1, 2006 to submit proposals for 2007-2008.  

Options for Students
Options for students to meet the requirement of completion of a rigorous secondary school program are detailed on a following slide

**Options for Rigorous Program**

- State Designated Program
- An advanced or honors diploma established by a state and in existence for the 04-05 or 05-06 school year
- State Scholars Initiative
- Submitted State Recognized Plan

## Options for Rigorous Program

**Options for Rigorous Program**

- 2.	A set of courses similar to the State Scholars Initiative as outlined in the Secretary’s May 2 letter to states.
- AP/IB: Successful completion of at least two courses with passing test score in those two courses of:
- 	Advanced Placement= 3
- 	International Baccalaureate= 4

## Options for Rigorous Program

**Options for Rigorous Program**

- Coursework designated by the Secretary
- 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

**Options for Rigorous Program**

- All states responded by June 1 to Secretary’s May 2 request.
- All states have one or more designated programs.
- Students from every state have at least 3 ways to qualify for ACG

## Analyzing Rigorous High School Credentials

- An institution is required to document and retain documentation that confirms eligibility against one of the five rigorous standard options.
- An institution can use which ever option is most efficient.
- Including reviewing the courses approved by the Secretary which are similar to the State Scholar’s Initiative

## On the web
When students who completed their Free application for Federal Student aid on the web at www.fafsa.ed.gov  receive their confirmation that their FASFA has been received, they may be prompted to answer questions about their eligibility for ACG.

- When students who completed their Free application for Federal Student aid on the web at _[www.fafsa.ed.gov](http://www.fafsa.ed.gov/)__  receive their confirmation that their FASFA has been received, they may be prompted to answer questions about their eligibility for ACG._

**How Do Students Apply?**

## FASFA on the Web

- _[www.fafsa.ed.gov](http://www.fafsa.ed.gov/)_

- Alert

## Alert – New Grant Program

## How Do Students Apply?

- If they have submitted a paper FAFSA and have received their Student Aid Report (SAR) indicating that they may be eligible to answer the ACG questions, they can call the Federal Student Aid Information Center at 1-800-4FEDAID.

- The student can indicate potential by visiting /writing the Financial aid office.
- The student will need to provide documentation.

**How Do Students Apply?**

- As counselors, you can encourage students to take courses that would meet the definition of “rigor”.
- You can assist students by providing documentation in a timely manner for the student to take to the school or provide the documentation to the school directly indicating that the student has met the criteria of “rigor”.

**How Can You Help?**

- You can help students in AP courses understand the need to take the AP exams.
- You can spread the word.

**How Can You Help?**

- Once the student has demonstrated eligibility the institution will follow the rules for disbursement and determine the “academic year” for the student.
- The grants are multiply disbursed.

**Disbursements**

## Grade Point Average for ACG

- For second academic year, a student must have a cumulative GPA of at least 3.0 from the first academic year of eligible program.
- Only determined once after completion of first academic year.

- HERA
- Links

**Financial Aid Professionals (FAP) Portal**

- _[www.fsa4schools.ed.gov](http://www.fsa4schools.ed.gov/)_

**HERA Links**

**Link to: Rigorous High School Program Codes**

**Rigorous High School Program Codes**

## National SMART Grant Program

**National SMART Grant Program**

## Eligible Majors

- Computer science
- Engineering
- Technology
- Life Sciences

- Mathematics
- Physical sciences
- Designated foreign languages

- Identified by CIP*

**HERA Link**

- Link to CIP
- Codes

## CIP Codes

## Monitoring Major

- Requires that a recipient–
- Declare an eligible major in accordance with institution’s academic policy; or
- Show intent to declare eligible major if school policy does not yet require a major.
- Institution must have process to monitor that student is making progress toward completion of the program with that eligible major.

- This is for 3rd and 4th year students.
- The student must also be Pell eligible.
- It is need based.
- US Citizens only
- It for $4000 each year.

**Other Eligibility Rules**

- Questions????

## Contact Information

**Contact**** ****Information**

- Claire “Micki” Roemer
-  (202) 377-3452
- Claire.Roemer@ed.gov