Frank O’Bannon and 21 - PowerPoint Presentation

Slide1

Frank O’Bannon and21st Century ScholarsCompletion Requirements

Indiana Commission for Higher Education

Division of Student Financial Aid

March 14, 2014Slide2

IntroductionThis presentation will briefly review the reasons for the reforms, give an overview of the new requirements, and answer some frequently asked questions about state financial aid. Memoranda issued about these changes

are available at

http://

www.in.gov/sfa/2533.htm

.

Full text of the statute is available

at

http://iga.in.gov/legislative/laws/2014/ic/titles/021/articles/012

/

. Slide3

Focus on Four YearsMost bachelor degree programs require students to graduate with 120 credits at semester colleges and 180 credits at quarter schools.

To graduate in four years, students should earn 30 credits per

year

at a semester college, or 45 credits at quarter schools.

In Indiana, students can receive state financial aid for four years.Slide4

Focus on Four YearsIn 2013, 75% of state financial aid recipients expected to graduate in four years, but…….

Only

53%

were taking

the necessary credits to do so.

Only 30%

of Frank O’Bannon recipients graduate with a bachelor’s degree within four

years

Only 20.4% same degree, same campus

Only 26%

of 21

st

Century Scholars graduate with a bachelor’s degree within four

years

Only 14.5

%

same degree, same campusSlide5

Cost of a Fifth Year – and DebtA fifth year of college can cost an average of $50,000 in tuition, fees, lost wages, and other associated costs.73% of aid recipients say they will take more debt to finance their fifth year once aid runs out

13% say they will not finish their degree if aid runs out (worst case scenario: debt and no degree

!)

Average debt of an Indiana college graduate is $27,000.Slide6

Financial Aid ReformBeginning in 2013-2014, students receiving state financial aid must successfully complete classes to renew state financial aid awards.All O’Bannon student awards will be determined using EFC, even for dependent students. All O’Bannon student awards will be determined using the new Financial Aid menu,

a.k.a

“The Grid”Slide7

Purpose of the new requirementsIncrease college completion rates for students receiving state financial aidReduce the total cost of college for studentsGraduating in four years means students pay less for a degree, incur less debt, and get into the workforce sooner. Increase the State’s return on investment

Make state award creation more transparentSlide8

Who do the new requirements affect?Students who receive a Frank O’Bannon or 21st Century Scholars Award and who first receive state financial aid during the 2013-2014 academic year or after; If students received their first state financial aid award prior to

academic year 2013-2014, these completion requirements do not affect their state financial aid eligibility. Slide9

Completion Requirements Frank O’Bannon ProgramComplete a minimum of 24 credit hours (or the equivalent) by the end of the first year the student receives financial aidComplete a minimum of

48 credit hours

(or the equivalent) by the end of the second year the student receives financial aid

Complete a minimum of

72 credit hours

(or the equivalent) by the end of the third year the student receives financial aidSlide10

Frank O’Bannon Award IncentivesStudents will receive more money if they…..Complete 30 credit hours or more each year (“on-time” award)Earn an academic honors or technical honors diploma in high school (Incentive in Year 1 of financial aid only)Earn a cumulative GPA of a 3.0 on a 4.0 scale (Incentive available in Years 2, 3, and 4 of financial aid only)

Earn an associate degree before enrolling in a bachelor’s degree program

Complete

39 credit hours or more each

year (accelerated incentive)Slide11

Completion Requirements 21st Century Scholars ProgramComplete a minimum of 30 credit hours (or the equivalent) by the end of the first year the student receives financial aid

Complete a minimum of

60 credit hours

(or the equivalent) by the end of the second year the student receives financial aid

Complete a minimum of

90 credit hours

(or the equivalent) by the end of the third year the student receive financial aidSlide12

Completion Requirements 21st Century Scholars ProgramIf Scholars complete less than the required credit hours, they may be eligible to receive an O’Bannon award. The Scholars’ O’Bannon award will be based on their EFC. Slide13

Key points to rememberThe new Grid for annual awards only applies to students receiving an O’Bannon award.21st Century Scholars are not eligible to receive the same incentives as O’Bannon students.

O’Bannon students

not

subject to completion standards are grandfathered, but still on the Grid for the base awardSlide14

Grandfathered StudentsStudents not subject to completion standards:Receive On-Time award based on their EFC and corresponding school in the GridReceive grandfathered Academic Honors amounts

$700 for proprietary schools or Ivy Tech

$800 for public schools

$1,400 for private schools

Receive grandfathered Associate Degree awards (same as Academic Honors amounts)

Can receive Academic Honors OR Associate Degree award, but not both. (IC 21-12-1.5-1

)Slide15

Frank O’Bannon StudentsThe following seven (7) slides apply only to the Frank O’Bannon program. We will review examples from public, private and proprietary schools. Slide16

When did the student receive his or her first state financial aid award? 2013-2014: The student must meet the completion requirements to renew his or her award. Student will receive either:Full-time award (at least 24 credits or the equivalent)On-time award (at least 30 credits or the equivalent)

2012-2013 or before: The student is not subject to the completion requirements.

Student will receive the on-time award.Slide17

Using the Grid – Base AwardsUse Initial AwardsIncoming 2014-15 first-year studentsStudents who have never received a state financial aid award beforeUse Renewal AwardsStudents who received their first state financial aid awards in 2013-2014 (On-Time or Full-Time)

Students who received their first state financial aid award in 2012-2013 or before (On-Time)Slide18

Using the Grid - IncentivesFor students who received their first state financial aid award in 2013-2014 or after. Do not use menu incentives for students who received their first state financial aid award in 2012-2013 or before. These students are grandfathered to receive the amounts they had previously received for their Academic Honors Diploma or Associate Degree (see slide 14)Slide19

$0 Base AwardsThe columns with a “$0” are the EFC levels in which a student with a $0 base award may still receive an incentive.

Any

EFC not on the grid or any place where the base award says “not eligible for aid” means that the a student with that EFC is not eligible for

either a

base award OR an incentive.

Students with EFCs above $4,000 attending a public school will not be eligible for any award or any incentive.

Students with EFCs above

$

7,500

attending a private school

will

not be eligible for any award or any incentive

.

Students with EFCs above $3,500 attending Ivy Tech or a proprietary school will not be eligible for any award or any incentive. Slide20

Example 1Student who received first state financial aid award in 2012-2013, EFC of $2000, Academic Honors DiplomaStudent is not subject to completion requirements because first state financial aid award was prior to 2013-2014Student

is grandfathered

in to receive the On-Time Award amount

Student is grandfathered in to receive past Academic Honors amounts

Award:

Public: $1,500 (base) + $800 (Academic Honors ) = $2,300

Private: $5,200 (base) + $1400 (Academic Honors) = $6,600

Ivy Tech / Proprietary: $800 (base) + $700 (Academic Honors) = $1,500Slide21

Example 2Student who received first state financial aid award in 2012-2013, EFC of $3000, Academic Honors DiplomaStudent is not subject to completion requirements because first state financial aid award was prior to 2013-2014Student

is grandfathered

in to receive the On-Time Award amount

Student is grandfathered in to receive past Academic Honors amounts

Award:

Public: $0(base) + $800 (Academic Honors ) = $800

Private: $4,000 (base) + $1400 (Academic Honors) = $5,400

Ivy Tech / Proprietary: $0 (base) + $700 (Academic Honors) = $700Slide22

Example 3Received first state financial aid award in 2013-2014, EFC of $1000, Academic Honors Diploma, 2.0 GPA, 29 creditsStudent is subject to completion requirements because first state financial aid award was in 2013-2014Student will not receive Academic Honors incentive because the student is in his second year and did not achieve a 3.0 or higher GPA

Student will receive the full-time award because he completed at least 24 credit hours but not 30 credit hours.

Award:

Public: $2,400 (base)

Private: $5,800 (base)

Ivy Tech / Proprietary: $1,800 (base)Slide23

Example 4John received first state financial aid award in 2012-2013, $0 EFC, Core 40 Diploma, 3.0 GPA, completed Associate Degree and now entering BS program NOT subject to completion requirements because first state financial aid award was in before 2013-2014

Grandfathered in and will receive

On-Time Award

No Academic Honors incentive

Grandfathered Associate Degree bump according to school

type

Award

Public: $3,700 (base) + $800 (Grandfathered Associate Degree)

Private: $7,400 (base) + $1,400 (Grandfathered Associate Degree)

Ivy Tech / Proprietary: $3,100 (base) + $700 (Grandfathered AD)Slide24

Example 5Tom is entering third year of school, but 2014-2015 will be his first year of aid. $0 EFC, Core 40 Diploma, 3.0 GPA, completed Associate Degree and now entering BS programSubject

to completion requirements

in future

P

ackaged with Initial Year award corresponding with school type

No

Academic Honors

incentive in Year 1 of financial aid, but could receive next year if GPA remains stable

Associate Degree incentive from menu

Award

Public: $3,700 (base) + $800 (Associate Degree)

Private: $7,400 (base) + $800 (Associate Degree)

Ivy Tech / Proprietary: $3,100 (base) + $800 (Associate Degree)Slide25

Example 6George is entering his third year of school, but 2014-2015 will be his first year of aid. $0 EFC, Academic Honors Diploma (2001 high school graduate), 2.75 GPA, completed Associate Degree and now entering BS

program

Subject

to completion requirements

in future

P

ackaged with Initial Year award corresponding with school type

Academic

Honors

incentive in Year 1 because of Diploma

Associate Degree incentive from menu

Award

Public: $3,700 (base) + $800 (Academic Honors) +$800 (Associate Degree)

Private: $7,400 (base) + $800 (Academic Honors) + $800 (Associate Degree)

Ivy Tech / Proprietary: $3,100 (base) + $800 (Academic Honors) +$800 (Associate Degree)Slide26

21st Century ScholarsThe following five (5) slides apply only to the students in the 21st Century Scholars program. We will review examples from public, private and proprietary schools. Slide27

Scholar Opt Out/Opt InIt will be important for students to understand that if that he/she opts out of the 21st Century Scholars program and chooses the O’Bannon award with incentives for this year, that student will only be eligible for the 21st Century Scholars award again if the student meets the credit completion requirements for the 21st Century Scholars program. Slide28

Scholar Opt Out/Opt InIf you have a student choosing to do this or your institution were to make it a policy to encourage students to opt out of the 21st program, CHE strongly suggests that students sign a waiver signifying they understand the ramifications their decision will make on any possible future awards. Slide29

Scholar Example 12014-2015: Sam has a zero EFC and an academic honors diploma. Based

on

this, Sam

elects to take

$7400

base O'Bannon +

$800

Academic

Honors. Sam has opted out of the Scholar’s program.

2015-2016: In 2014-2015, Sam earned

39 credit hours

and has a

3.1

GPA. His EFC is still $0. Based on this, Sam again elects

O'Bannon of

$7400

+

$800

+

$1300. Sam has not opted back into the Scholar’s program.

2016-2017: By the end of 2015-2016, Sam has earned 69 hours and still has a 3.1 GPA. However, his EFC has gone up to $4000. Sam still meets the eligibility requirements of the Scholars program (has completed 60 credits by the end of Year 2), so Sam can opt back into the Scholars program and receive the Scholars Award of $7,570 (assuming no change in value) instead of the $2,900 + $800 O’Bannon Award. Slide30

Scholar Example 22014-2015: Sam has a zero EFC and an academic honors diploma. Based on this, Sam elects to take

$7400

base O'Bannon +

$800

Academic

Honors. Sam has opted out of the Scholar’s program.

2015-2016: In 2014-2015, Sam earned

39 credit hours

and has a

3.1

GPA. His EFC is still $0. Based on this, Sam again elects

O'Bannon of

$7400

+

$800

+

$1300. Sam has not opted back into the Scholar’s program.

2016-2017: By the end of 2015-2016, Sam has earned 59

hours and

still has a 3.1 GPA. However, his EFC has gone up to $4000. Sam no longer meets the eligibility requirements of the Scholars program (has not completed 60 credits by the end of Year 2), so Sam cannot opt back into the Scholars program. He will receive the

O’Bannon Award of $2900 (base) + 800 (incentive

) rather than the Scholars Award of $7570 (assuming no change in value). Slide31

Scholar Example 3Scholar received first state financial aid award in 2012-2013, EFC of $3000, Academic Honors DiplomaStudent is not subject to completion requirements because first state financial aid award was prior to 2013-2014Student is

Scholar so he receives the Scholars Award

Student is

Scholar so there is no bonus for Academic Honors

Award:

Public:

Full tuition and Fees

Private:

$7,570

Ivy Tech / Proprietary

: $3,904Slide32

File LayoutsNew file layouts will be done within two weeks.NOTF – out week of March 17Credit completion/GPA – out week of March 17RECN – out week of March 24Incentive awards

will be

separated from the base award on the NOTF and RECN

files.

Each

type of incentive

will need

to be accounted for

separately. Slide33

CHE – Institution Data ExchangeBy the end of May, schools that can should submit a file to SFA with the list of students who attended institutions and received the Frank O’Bannon and 21st Century scholarship during 2013-14

.

SFA will provide file layout (credit completion/GPA file)

List

should include students information, cumulative GPA, credit earned over 2013-14 academic year.

SFA

will collect data elements from institution partners at the end of each

school’s academic

term.Slide34

CHE – Institution Data ExchangeSFA will create awards in June based on FAFSAs and the credit/GPA information collectedSFA

will provide

schools with

the

NOTF

files that include students offered awards.

Schools that did not have GPA and completion data for some students should submit an updated Completion file before they claim awards

.Slide35

Data Elements NeededEnrollment dateUse of state awards “start date” (will be based on first reconciliation)SAP information

AP and dual credits accepted by institutions

Cumulative GPA

Credits earned during the last attended term (not cumulative)Slide36

ReconciliationBeginning with 2014-2015, will have “rolling reconciliation” cycleOne final deadline in June, prior to the State’s fiscal year end June 30.

SFA will continue to provide “up-front” allocations at a reduced schedule starting with 2015-2016. Slide37

Spring 2014 StartsStudents who first started in Spring 2014 and received their first state financial aid award in Spring 2014 will be special circumstances because of the transition from the old system to the new system. These students will have their awards adjusted to put them on an “annual award” track.

The student’s

first “annual award” will be the spring SFA award

offer, which is still calculated as a term-based award.

The student’s 12-month

clock will begin

during the term that award is reconciled. (Spring 2014).

Schools should

claim

this award the same as it has been claimed in the past.

The unused fall SFA award offer will be converted to the second half of the students first “annual award”. This second half of the award will be calculated at half the annual award amount and be based on the award offer calculated from the 2013-2014 FAFSA.

In

other words, their spring award will be doubled to reflect what the fall award would have

been.Slide38

Spring 2014 StartsFor all students who receive their first state award in spring 2014, you will be able to see and reconcile the first part of this award during the spring 2014 term. The second part of this award can be claimed after AY 14-15 annual awards are calculated.

This

aligns the student's annual award with his

12-month

window for credit completion

.

NOTE: In

subsequent years, a student could have two awards calculated

due

to the overlap of academic years. For

example,

a student who begins classes in January 2015 may have an award calculated for 2014-2015 from the 2014-2015 FAFSA and 2015-2016 from the 2015-2016 FAFSA.Slide39

2013-2014 Summer Aid21st Century Scholars, Frank O’Bannon (HEA and FOC) and National Guard Supplemental Grant (NGSG) recipients - institutions may claim their full award for spring and hold over any remaining funds after spring costs are paid for summer. Students

will only be able to use fund balances at the school they utilize state aid at during the spring term.

We will be issuing a separate Summer Aid memo for clarification. Slide40

2014-2015 Summer AidStudents need to work directly with their college or university’s financial aid office. The annual award amount stays the same – the way it is divided changes. Each school will set up its own steps that students must follow to have some of their state aid applied during the summer term.

It’s also important to remember that if students defer some of the state award money for use in the summer, the award amounts for the fall or spring term will be smaller. Slide41

Transfer HoursSFA will provide the following information to all schools:

Period

during which the student received their first state award (to grandfather students not effected by the 30 credit hour requirement),

What

12 month academic period student is in for purposes of counting credit hours (i.e. Aug to Aug, Jan to Jan

)

How

many years left on 4 year limit (using units?)

Schools

will

submit

credit completion information at the end of each term, and GRADS will be the repository of this information.

Transfer credits from a

non-eligible

institution should be submitted by the new/hosting school to CHE upon claiming of award. Slide42

Frequently Asked QuestionsQuestion: Do students need to be enrolled full-time in the summer to receive state aid?Answer: No. Students who work with their financial aid office to defer some of their state award do not have to be enrolled full-time during the summer term. However, during the fall and spring terms students must be enrolled in at least 12 credit hours (or the equivalent) to receive the Frank O’Bannon or 21

st

Century Scholarship awards. Slide43

Frequently Asked QuestionsQuestion: For the purposes of credit completion, when does the academic year start and end?Answer:

The academic year begins with the first semester a student enrolls in college and begins using state financial aid. For example, students initially enrolling during the fall term and using their first state financial aid award have through the end of the following summer to complete the minimum number of credits, while students initially enrolling and using their first award in the spring have the through the end of the following fall to complete the credit minimums.Slide44

Frequently Asked QuestionsQuestion: Do students have to take classes at their home institutions for the credits to count toward the completion

requirement?

Answer:

No. Classes taken at another institution may count toward the completion requirement, but students should work closely with their home institution to make sure that any classes taken at another institution transfer back with them.Slide45

Frequently Asked QuestionsQuestion: Will grandfathered students that have received the Associates Degree add-on in the past be eligible for the Associates Degree’s incentive in 2014-15 and moving forward? If so, will grandfathered AS degree incentives follow the old rules?

Answer:

Yes. Students who are grandfathered in are still eligible to receive the Associate Degree award they received in the past. The amount mirrors the amounts for the grandfathered Academic Honors or Technical Honors awards ($700/$800/$1400). NOTE: Grandfathered students are only eligible for the Academic Honors OR the Associate Degree bump, not both. (21-12-1.5-1)Slide46

Frequently Asked QuestionsQuestion: Why were the CVO aggregate hours added to the APPL file? Will they be also be added to the FRPD file?Answer: These hours were added per request by institutions.Slide47

Frequently Asked QuestionsQuestion: On the grid handout, under the “Add An Item” section, it states that a 2nd, 3rd, or 4th year student would need to earn a 3.0 cumulative GPA in the previous award year.

Is

the

cumulative GPA

is restricted to

the

previous award year or is it a true

cumulative GPA

for

the student’s

overall

career?

Answer:

It is a true cumulative GPA for the student’s overall career, as of the end of the previous year. We have clarified this on the Grid and sent an updated version for use. Slide48

Frequently Asked QuestionsQuestion: If a student attends a private school during his first term and a public school during his second term, how will the Annual Award be calculated? Answer: The student’s initial award will be created based on annual award for the private school. If

student then switches to a public school, a new award (using public schools grid amount) will be

created based on the percent of the award still remaining. If the student used

50%

of his award at the private school during

the first term, the student has 50% remaining of annual

award at the public school amount

for the second

term. Slide49

Frequently Asked QuestionsQuestion: What if a grandfathered student (received aid prior to/during Fall 2013) did not have the Academic Honors flag but earns a 3.0+ GPA during his first year of college? Would

he be eligible for the

Academic Honors

incentive during his second year?

Basically

, can any student (grandfathered or not as long as they are a second, third, or fourth year) receive the

Academic Honors incentive

by earning the 3.0

cumulative.

Answer:

Because the student is grandfathered, he

can only receive the

Academic Honors incentive

by having an

Academic Honors flag

.

A student who is grandfathered is not eligible for the incentives on the Grid. Slide50

Frequently Asked QuestionsQuestion: How will transfer hours reporting be handled?Answer: SFA will provide the following information to

all

schools:

Date of first award (will assist schools in determining if the student was grandfathered or not)

What

12 month academic period student is in for purposes of counting credit hours (i.e. Aug to Aug, Jan to Jan

)

How

many years left on

four

year limit

The number of credits earned up to point of transfer

This will show schools whether students are On-Time or Full-Time

Schools

will

submit

credit completion information at the end of each term, and GRADS will be the repository of this information. Slide51

Frequently Asked QuestionsQuestion:Why don’t 21st Century Scholars receive the same incentives for an academic honors diploma, accelerated credit completion, or pursuing a bachelor’s degree after obtaining an associate degree like O’Bannon recipients?

Answer

:

The base O’Bannon award covers only a small portion of tuition and mandatory fees for students, in contrast to the 21

st

Century Scholars program, which provides 100 percent of tuition and mandatory fees at public institutions. The incentives allow students receiving the O’Bannon Award to receive more financial aid in exchange for increased levels of performance.Slide52

Frequently Asked QuestionsQuestion: Can a Scholar receive an incentive for Academic Honors, Associate Degree or Accelerated credits? Answer: A Scholar can only receive incentives if the Scholar opts out of the Scholar program.

Question:

Will a

Scholar

be able to elect to utilize the O'Bannon Grant and incentives in a given year if that award total would be higher than their 21st century award at a private institution?

Answer:

Yes, if they opt out of the Scholar program. Slide53

Frequently Asked QuestionsQuestion: Are students who received State aid prior to 2013 eligible for the accelerated award add on?

Answer:

No

. Students who are not subject to the completion requirements are not eligible for incentives other than the Academic Honors / Technical Honors Diploma incentive. In this case, they are grandfathered in and will receive awards for two more years at the same level as they received during their first two years. ($700/ $800/ $1400)Slide54

Frequently Asked QuestionsQuestion: Does the Commission have an appeal process in place for students that may fall short of the credit hour requirement due to special circumstances?Answer: Yes.

Statute

provides an appeal process.

(See page 12 of August 21, 2013 memo.)Slide55

Frequently Asked QuestionsQuestion: Do AP and dual credit classes in high school count toward credit completion? Answer:

Yes. If

a student

receives

AP

credit or takes dual credit classes

in high school and earns credit toward a college course for that AP/dual course,

those credits

should be counted toward the completion requirement for determining state financial aid

.

The student must still enroll in a minimum of 12 credit hours to be eligible for the award.

The

initial accepting school

should report the total accepted AP/dual credits for this student. Slide56

Frequently Asked QuestionsQuestion: On the menu it says, “Students with financial need may earn student performance incentives even if his or her base award is $0.” Does this refer only to the EFC ranges with a $0 value on the grid or the more general definition of financial need?Answer:

The areas where there are a

“$0”

are the areas where a student with a $0 base award may still receive an incentive. Any EFC not on the grid or any place where the base award says “not eligible for aid” means that the a student with that EFC is not eligible for a base award OR an incentive.

Students

attending a private

school with EFCs above

$

7,500

will not be eligible for any award or any incentive.Slide57

Frequently Asked QuestionsQuestion: What if the student received part of their award at another school, do we make an assumption that they were meeting the credit hour requirement, or will we have to collect transcripts?

Answer:

GRADS will have information on whether an award has been claimed or not. However, you may need

verify what credits

the student has

if

the credit information was not provided. The idea is that schools will be submitting credit completion information at the end of each term, and GRADS will be the repository of this information.Slide58

Contact UsIndiana Commission for Higher Education Phone: 1-888-528-4719Fax: 317-232-3260

Email:

Awards@che.in.gov

(students, parents)

Email:

CollegeFA@che.in.gov

(college partners)

Website:

www.che.in.gov