academic competitiveness grants and national smart grants

Academic Competitiveness Grants and National SMART Grants

Fred SellersOffice of Postsecondary Education

U.S. Department of Education

Southwest Association of Student Financial Aid Administrators 2006 Tulsa

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Agenda

• Law and Regulations

• Basic Requirements

• Student Eligibility: ACG Program

• Student Eligibility: National SMART Grant Program

• Additional General Requirements

• Business Processes

Lawand

Regulations

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Law

• Higher Education Reconciliation Act of 2005 (HERA)

• Authorizes: Academic Competitiveness Grant

Program (ACG) National Science and Mathematics

Access to Retain Talent Grant Program (National SMART Grant)

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Funding• Is not subject to annual appropriations

• Authorized by HERA:– 2006-07 -- $790 million– 2007-08 -- $850 million– 2008-09 -- $920 million– 2009-10 -- $960 million– 2010-11 -- $1.01 billion

• Ratably reduce awards if funds are insufficient

• Carry forward unused funds

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Interim final regulations

• Published July 3, 2006 2006-2007 award year Invitation to comment through August

17, 2000 80 comments

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Final regulations

• Published November 1, 2006 Effective date: July 1, 2007 for 2007-

2008 award year Implementation date: may apply

changes to 2006-2007 award year

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Final regulations• Significant modifications based on

public comment• Change

Must receive Pell in the award year, rather than the payment period

• Clarification Academic year progression based on

attendance in all eligible programs over the course of a student’s undergraduate education

No prior enrollment in an ACG eligible program while in high school for first-year eligibility

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Negotiated rulemaking

• 2008-2009 and subsequent award years

• Federal Register notice: published on August 18, 2006

• Regional hearings Berkeley, CA September 19 Chicago, IL October 5 Orlando, FL November 2 Washington, DC November 9

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Negotiated rulemaking

• Tentative Calendar Nominations: November 9, 2006 Sessions: December 2006

February 2006 March 2007

NPRM: May 2007 Comments: July 2007 Effective Date: July 1, 2008 (possible

early implementation)

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Institutional responsibilities

• Institutions are responsible for implementing programs within guidance provided.

• Institutions face significant challenges with virtually no lead time.

• Challenges will be considered in reviews of an institution’s implementation.

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Basic Requirements

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Shared requirements

• U.S. citizen (noncitizens are ineligible)• Pell recipient in the same award year• Full-time for the payment period• Enrollment in degree program• Progression by student’s t. IV

academic year• One Scheduled Award for each t. IV

academic year• Calculation of payments for payment

periods (same as Pell)

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Separate requirements

• 1st and 2nd t. IV academic years

• Eligible programs: 2- or 4-year degree

• Rigorous secondary school program of study

• 3rd and 4th t. IV academic years

• Eligible programs: 4-year degree

• Eligible major

ACG NSG

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Separate requirements

• Scheduled Award 1st academic year:

$750 2nd academic year:

$1,300

• GPA: at least 3.0 for 1st academic year only

• Scheduled Award 3rd academic year:

$4,000 4th academic year:

$4,000

• GPA: at least 3.0 through prior payment period (cumulative)

ACG NSG

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Duration of eligibility

• ACGs One grant for first t. IV academic year One grant for second t. IV academic year

• National SMART Grants One grant for third t. IV academic year One grant for fourth t. IV academic year

• Progression: based on attendance in all eligible programs

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Student Eligibility:ACG Program

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ACG eligibility• 1st year students

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

May not have been previously enrolled while in high school as a regular student in an ACG eligible program

• 2nd year students Have completed a rigorous secondary

school program of study after January 1, 2005

Have a 3.0 or higher G.P.A. in an eligible program for first academic year

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Previous enrollment 1st year eligibility

In High School• Is not eligible if

enrolled as a “regular student” in an ACG eligible program

• May be eligible if not enrolled as a “regular student” in ACG eligible program

After High School• No previous

enrollment restriction for enrollment after high school

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Rigorous secondary school program

• Student must complete a rigorous secondary school program of study.

• ED has outlined options to meet requirement in the regulations.

• Student must complete recognized program for State where completes secondary school.

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Options for rigorous program

• State-designated program State submitted program An advanced or honors program

established by a state and in existence for the 2004-2005 or 2005-2006 school year

State Scholars Initiative

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Options for rigorous program

• A set of courses as outlined in the regulations

• Completion of at least two Advanced Placement (AP) courses with passing test score of 3 or two International Baccalaureate (IB) courses with passing test score of 4

http://www.ed.gov/admins/finaid/about/ac-smart/state-programs06.html

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Options for rigorous programSet of courses

• 4 years of English

• 3 years of math Two of which must be algebra I and above

• 3 years of science Two of which must be one each of biology,

chemistry, or physics

• 3 years of social studies

• 1 year of a language other than English

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Rigorous programInstitutional responsibilities

• Are responsible for students who self-identify Are responsible for at least the standard(s)

selected by the student

• Are encouraged to identify eligible students based on records they have (e.g., high school transcripts, test scores)

• Are also responsible if student informs the institution directly

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Documenting rigorous program

• Institution must document completion of a rigorous program.

• Documentation from “cognizant authority” provided by – The student, or “Cognizant authority” directly.

• For home schooled students, the parent or guardian is the cognizant authority.

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Documenting rigorous program• For transfer students, an institution

may rely on another school’s determination that student completed a rigorous program. NSLDS will store the data.

• Documentation must come directly from cognizant authority if the institution believes it is Inaccurate, or Incomplete.

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Grade point averagefor 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.

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Student Eligibility:National SMART Grant

Program

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Eligible majors

• Computer science

• Engineering

• Technology

• Life Sciences

• Mathematics

• Physical sciences

• Designated foreign languages

• Identified by CIP* code in DCLs GEN-06-06 and GEN-06-15

*Classification of Instructional Program

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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.

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Grade point averagefor National SMART Grant

• For each payment period, student must have a cumulative GPA of at least 3.0. Includes student’s entire program – all

coursework required for degree in approved major

Calculate through last completed payment period

Review prior to each disbursement

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Additional General Requirements

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Need-based grants

• Total of ACG/National SMART Grant, EFC, Pell, and all other estimated financial aid may not exceed cost of attendance. May not replace EFC May reduce other aid, including FSEOG, to

avoid an overaward May reduce ACG/National SMART award to

avoid an overaward

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Determining enrollment status

• Must have the same policy for determining enrollment status for Pell and for ACGs and National SMART Grants

• Must use same recalculation policy, such as recalculation date (census date), as used for Pell

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Disbursements• Follow title IV cash management rules

• Make disbursements by payment period

• For a cross-over payment period, must assign Pell Grant and ACG/National SMART Grant to same award year

• May not disburse ACG or National SMART concurrently at more than one school

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Remaining eligibility

• Remaining eligibility is based on % of Scheduled Award.

• Scheduled Award may be different if balance of an academic year is in a new award year. Example: Second-year student with ACG for two

quarters ($866) receives 2/3 of the 2006-07 Scheduled Award ($1,300).

Student is only eligible, as a second-year student, for the remaining 1/3 of the Scheduled Award in next award year.

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Duration of eligibility

• Progress and duration of eligibility is measured in title IV academic years.

• Duration is based on attendance in all eligible programs.

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Academic year

A title IV academic year is defined in the HEA to be a minimum of: 24 semester hours, 36 quarter hours, or

900 clock hours, and 30 weeks of instructional time (26 for

clock hours) .

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Credit hours• Regardless of the hours in a

program’s academic year, full-time for an undergraduate is a minimum of: 12 semester hours for a semester or trimester; or 12 quarter hours for a quarter.

• Title IV academic year is often not the same as grade level for institutional purposes and loan limits (i.e., 30 semester hours to progress from grade level 1 to grade level 2).

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Weeks of instructional time

• Determine the actual number of weeks of instructional time to complete hours earned

• For transfer students, may assume weeks of instructional time based on credits accepted

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Weeks of instructional time• For the 2006-2007 and 2007-2008 award

years, if Formula 1 program, may assume that 30 weeks of instructional time for credit hours in program’s title IV academic year

• See DCL GEN-06-18• May exercise Formula 1 option to assume

weeks– On a student by student basis For same student for different terms For transfer credits differently than for home

earned credits

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Weeks of instructional time

• NOTE: for transfer students and for programs using Formula 1 and assuming weeks, an institution must determine the actual number of weeks of instructional time for a student who requests such a determination or questions whether they have completed an academic year.

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• For the 2006-2007 and 2007-2008 award years, fourth academic year ends when the student has completed the credits required for completion of that academic program, as published in the institution’s official academic publications.

• Same policy for second year of associate degree program.

Fourth academic year

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Determining Academic Year Progression

Payment Formula Used for Eligible

Program

Academic Year Based on Actual

Weeks of Instructional Time

and Hours

May Assume Weeks Based on Hours

(2006-7 and 2007-8)

May Assume Weeks Based on Accepted Hours for Transfer

Students

Must Determine Actual Academic Year Standing if

Student Requests

Formula 1 YES YES YES YES

Formula 3, but eligible to use

Formula 1YES YES YES YES

Formulas 2, 3, 4 YES NO YESYES

for transfer students

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Business Processes

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ACG Self-identification

• Applied prior to July 1, 2006 Sent notifications to potentially ACG

eligible students Offered on-line option and a “call in

option” nonelectronic filers could use

• Applied after July 1, 2006 FOTW: Potential ACG eligibles submit

the information with FOTW. Paper: Potential ACG recipients will

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

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• Questions on student’s high school curriculum High school completed after January 05 State where high school curriculum

completed Curriculum completed:

• Drop-down box with State-designated programs

• AP/IB course and test completion • Listed courses

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• 665,251 students have self-identified as of October 27.

• Clearly some students do not meet minimum criteria.

• Institutions can use other data such as age to “screen” applicants…no follow-up necessary.

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• Quick reference to the recognized State rigorous secondary school programs of study for ACG: http://www.ifap.ed.gov/eannouncements/

attachments/0713HERAOperGuidanceAttachA.xls


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ACGSelf-identification

• Results are sent to all schools listed on student’s record.

• There are ISIRs with new comment codes. If no other changes, the message class will be

IGAA07AP.

• Special “flat file” is created with a separate message class of ED2007OP

• Student-specific information is available using FAA Access.

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ACGSelf-identification

• Comment codes on SAR for student, and ISIR for schools

• Comment codes in ISIR positions 1677 to 1736

• Multiple comment codes: one for each rigorous criteria selected by student

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Update to students and the ACG questions

• For 2007-2008, screening by age to approximate being a recent high school graduation

• For 2008-2009: Likely, add graduation from high school

question to the paper form Add same for FOTW

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Availability of funds

• Initial authorizations in GAPS and COD with Electronic Statements of Account (ESOA) on July 29, 2006 Not like campus-based: no institutional

allocation Authorization more like Pell

• Funds available in GAPS since early August Separate authorization for each program

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Status of funds

• As of October 23, 2006 483 schools have drawn $31+ million for

ACG. 335 schools have drawn $29+ million for

SMART.

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Data suggests

• Schools are using their own money.

• Institutions have not made awards. Is too burdensome, given time frame Is uncertainty Are not aware they must make awards Think they can wait until next year Find that students do not qualify

• Risk is $790 million left on the table intended for needy students.

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Reporting awards and disbursements

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

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

• Academic year is an element in common record.

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NSLDS

• Receiving ACG/SMART Grants from COD starting December 17, 2006

• Displaying ACG/SMART Grants on the website starting December 18, 2006

• Using a new file format for Transfer Student Monitoring/Financial Aid History starting January 1, 2007

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NSLDS

• No ACG/National SMART Grant award data on 2006-2007 ISIRs

• Beginning on January 1, 2007, for 2007-2008 2007-08 ACG/SMART Grant disbursement

data will appear on 2007-08 ISIRs. ISIR Financial Aid History will display up to

three ACG and SMART Grant disbursements for the 2007-08 award year.

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Resources

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HERA Training

• Are over 50 sites • Began late September to December• In Southwest:

Lafayette, LA November 15* Dallas, TX November 20* Dallas, TX December 12

• Will offer a Spring series

*Class full per website

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HERA on IFAPhttp://www.ifap.ed.gov

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Human beings

• Your training officers

• Customer service

• Other technical support

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“To give away money is an easy matter and in any man's power. But to decide to whom to give it, and how large and when, for what purpose and how, is neither in every man's power nor an easy matter. Hence it is that such excellence is rare, praiseworthy and noble.”

– Aristotle

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Thank you!

• Fred Sellers [email protected] 202 502-7502

• Jacquelyn Butler [email protected] 202 502-7890

• Sophia McArdle [email protected] 202 219-7078

mailto:[email protected]



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Appendix:Case Studies

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• When tracking actual weeks of instructional time, courses that are not part of an ACG or National SMART Grant eligible program or courses not at the postsecondary level do not count in determining weeks of instructional time.

• Examples of such courses include: Remedial Coursework; Advanced Placement (AP) or International Baccalaureate (IB)

courses/exams; College Level Examination Program (CLEP); Credit for life experience; Courses taken when not enrolled as a regular student; and Courses that are not part of an eligible program.

Example 1:Courses/credits that do not count

in weeks of instructional time

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Example 2: Advanced Placement courses

• Student graduated high school May 2006 for Fall 2006 with 45 AP credits accepted toward the student’s degree.

• School A’s defines an academic year 24 semester hours and 30 weeks of instructional time for the student’s program and uses Formula 1.

• If School A assumes weeks of instructional time, this student would be in his or her second academic year. 45/24 = 1.875

• However, student has no GPA from “first academic year” and would, therefore, not be eligible to receive ACG funds for a second-academic-year award.

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Example 2: Advanced Placement courses (cont’d)

• If School A chose to track actual weeks, then the student would still be in his or her first academic year as AP credits carry no weeks of instructional time. This student would be eligible for first-year ACG award if otherwise eligible.

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Example 3: Academic year

• Student completes 36 semester hours at School X and has 3.50 GPA. School Y accepts only 24 hours upon transfer.

• School Y is only required to use the hours that transfer in determining academic year (hours and weeks), but the school may look at transcript (i.e., all 36 hours) to determine weeks of instructional time completed or may determine the actual weeks attended at School X.

• School Y chooses to use only the hours accepted to determine weeks. The student is, therefore, considered to have completed 24 hours and 30 weeks instructional time, i.e., one academic year.

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• Student enrolls at School A for 2006-07 award year. Student completes 24 semester hours over three terms (part-time enrollment) and receives no ACG.

• Student transfers to School B for 2007-08 award year. School B only accepts 18 semester hours of the courses taken at School A. School B defines its academic year as 24 semester hours and 30 weeks of instructional time.

• School B uses Formula 1 and chooses to assume weeks of instructional time not only for transfer credits but also for credits earned at School B instead of tracking actual weeks of enrollment.

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Example 4: Academic year (cont.)

• School B assumes 75% of academic year’s weeks (18/24) completed. Student is still in first academic year at School B. Year 1 is 0-24 hours and 30 weeks, Year 2 is 25-

48 hours and weeks 31-60 …

• School B awards half of first-year ACG ($375) for Fall 2007.

• Student completes 15 hours in Fall 2007 and now has completed 33 semester hours. Student has cumulative GPA of 3.25 on the 15 hours earned at School B.

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Example 4: Academic year (cont’d)

• School B assumes weeks, which means student has completed 1.375 academic years (33/24). Student has completed year 1 and is in academic year 2.

• For Spring 2008, school may award half of second-year ACG ($650).

• Student received total of $1,025 in ACG funds for 2007-2008.

• The student completes 15 hours in the the Spring 2008 term.

• In the fall of 2008 the student is entering the third academic year and no longer eligible for ACG.

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• Like Example 4, student enrolls at School A for 2006-07 award year. Student completes 24 semester hours over three terms (part-time enrollment) and receives no ACG.

• Student transfers to School B for 2007-08 award year. School B only accepts 18 semester hours of the courses taken at School A. School B defines its academic year as 24 semester hours and 30 weeks of instructional time and uses Formula 1.

• School B determines student has completed 18 credit hours and has policy to track actual weeks of instructional time earned at school B.

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• School B may look at transcript and determine that student has completed the weeks in a full academic year, because student completed two semesters at School A, but will only have 18 hours “completed” at School B.

• Note that the regulations and guidance will allow School B to assume weeks of instructional time for hours transferred in and then track actual weeks of instructional time from that point on.

• Nothing prevents a school from using the assumption method for transfer hours then tracking actual weeks of instructional time at the school, unless the student requests that all weeks of instructional time be tracked rather than assumed.


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• For the first semester (Fall 2006) at School B, the student can be awarded $375 in ACG funds.

• Student completes 15 hours in Fall 2006 and has a cumulative GPA of 3.25. This GPA represents only the 15 hours taken in Fall 2006 and the school’s policy is not to include the grades of transferred hours.

• At the end of Fall 2006, the student will have completed the weeks for 1 ½ academic years and have 33 hours. The school may award $650 in ACG funds for Spring 2007.

• If school policy is to include GPA for courses transferred in, then the cumulative GPA at the end of Fall 2006 would also include the GPA for those courses.


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• At School C, student completes 12 credit hours. Student was only enrolled full-time one semester and received only one disbursement ($375) of ACG funds.

• Student transfers to School D and none of the 12 credits transfer. School D uses Formula 1 for the student’s program and assumes weeks of instructional time.

• With zero hours, School D reviews NSLDS and notes the student has already been awarded ACG funds (which serves as documentation of completion of rigorous secondary school program of study).

• School D awards this student $375 ACG award.

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• Student completes 14 credit hours in Fall. Although the student appears to be still in the first academic year at School D, there are no remaining ACG funds for Spring.

• However, because the student received half an ACG at School C, School D must assume that the student completed half an academic year at School C unless it has information to the contrary.

• School D must consider the student to be entering the second academic year in the Spring term. A student’s academic year progression is based on

attendance in all eligible programs over the course of the student’s undergraduate education.


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Example 7: Academic year progression

Student graduates high school and enrolls at school that

tracks actual weeks of instructional time.

• Fall 2006: 15 hours, 15 weeks Awarded ½ of 1st academic year ACG Ends term with 15 hours and 3.66 GPA

• Spring 2007: 18 hours, 15 weeks Awarded ½ of 1st academic year ACG Ends term with 33 hours and 3.58 GPA

• Summer 2007: 9 hours, 15 weeks* Receives no ACG (less than full-time) Ends term with 42 hours and 3.63 GPA

* Programs using formulas 1 and 2 allowed to treat summer term as half an academic year in weeks, e.g., 15 weeks

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• Fall 2007: 18 hours, 15 weeks Awarded ½ of 2nd academic year ACG Ends term with 60 hours and 3.67 GPA

• Spring 2008: 18 hours, 15 weeks Awarded ½ of 3rd academic year Nat’l SMART Grant

(beyond 2nd yr in wks & hrs; SMART-eligible major declared)

Ends term with 78 hours and 3.72 GPA

• Summer 2008: 9 hours, 15 weeks* Receives no Nat’l SMART Grant (less than full-time) Ends term with 87 hours and 3.69 GPA

Example 7: Academic year progression (cont.)

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• Fall 2008: 15 hours, 15 weeks Awarded ½ of 4th academic year Nat’l SMART Grant Ends term with 102 hours and 3.67 GPA

• Spring 2009: 18 hours, 15 weeks Awarded ½ of 4th academic year Nat’l SMART Grant Ends term with 120 hours and 3.64 GPA

• Total ACG received: $1,400

• Total National SMART Grant received: $6,000


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Student graduates high school and enrolls at school that assumes weeks of instructional time based on credits.

• Fall 2006: 15 hours, 15 actual weeks Awarded ½ of 1st academic year ACG Ends term with 15 hours and 3.66 GPA (assumes 0.625 ac.yrs.)

• Spring 2007: 18 hours, 15 actual weeks Awarded ½ of 1st academic year ACG Ends term with 33 hours and 3.58 GPA (assumes 1.375 ac.yrs.)

• Summer 2007: 9 hours, 15 weeks* Receives no ACG (less than full-time) Ends term with 42 hours and 3.63 GPA (assumes 1.75 ac.yrs.)

* Programs using formulas 1 and 2 allowed to treat summer term as half an academic year in weeks, e.g.,

15 weeks

Example 8: Academic year progression

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• Fall 2007: 18 hours, 15 weeks Awarded ½ of 2nd academic year ACG Ends term with 60 hours and 3.67 GPA (assumes 2.5

ac.yrs.)

• Spring 2008: 18 hours, 15 weeks Awarded ½ of 3rd academic year Nat’l SMART Grant

because eligible major declared Ends term with 78 hours and 3.72 GPA (assumes 3.25

ac.yrs.)

• Summer 2008: 9 hours, 15 weeks* Receives no Nat’l SMART Grant (less than full-time) Ends term with 87 hours and 3.69 GPA (assumes 3.625

ac.yrs.)


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• Fall 2008: 15 hours, 15 weeks Awarded ½ of 4th academic year Nat’l SMART Grant Ends term with 102 hours and 3.67 GPA (assumes 4.25

ac.yrs.)

• Spring 2009: 18 hours, 15 weeks Awarded ½ of 4th academic year Nat’l SMART Grant Ends term with 120 hours and 3.64 GPA (graduates)

• Total ACG received: $1,400

• Total National SMART Grant received: $6,000


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Example 9:Change in academic year

• Student completes 49 semester hours at School A over three award years then transfers to School B. School B reviews NSLDS and sees that the student received a full Scheduled Award for ACG for the 2008-09 award year for academic year 2.

• School B only accepts 22 semester hours as applicable toward a degree at its institution.

• Student is not eligible for academic year 1 ACG because history shows year 2 already received. A student’s academic year progression is based on

attendance in all eligible programs over the course of the student’s undergraduate education.

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Example 10: Financial need

Student Profile

COA: $19,500

EFC: 0

Need: $19,500

Original Determinations

Merit Scholarship $15,000

Federal Pell Grant $ 4,050

ACG: $ 750

Packaging Options

Merit Scholarship: $14,700

Federal Pell Grant: $ 4,050

ACG: $ 750

--OR--

Merit Scholarship: $15,000

Federal Pell Grant: $ 4,050

ACG: $ 450

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Student Profile

COA: $25,500

EFC: 0

Need: $25,500

Original Determinations

Veterans Benefits $21,970

Federal Pell Grant $ 4,050

ACG: $ 750

Packaging Options

Veterans Benefits $21,970Federal Pell Grant:$ 4,050ACG: $ 0

Student cannot receive any ACG funds because need has already been met. No overaward for Pell and VA only.

Example 11: Financial need

academic competitiveness grants and national smart grants

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