The Department of Education's Nov. 1 regulations for the Academic Competitiveness Grant (ACG) and National Science and Mathematics Access to Retain Talent (SMART) Grant Programs offer some improvements and clarifications but no change on one of the most troublesome issues: use of the statutory definition of academic year to define grant level progression. On this point, the Department maintains that it does not have statutory authority to use an alternate interpretation.
ACG/SMART Student Eligibility
The Department amended the interim final regulations on one important issue: the requirement that a student must receive a Pell Grant and an ACG or National SMART Grant in the same payment period. The final regulations specify that a student should be eligible to receive an ACG or National SMART Grant award as long as the student received a Pell Grant in the same award year.
ACG/SMART Effective Date Flexibility
Effective for the 2007-08 award year, the regulations also provide that institutions and state and local educational agencies "may, at their discretion, choose to implement all of the provisions of these final regulations on or after November 1, 2006, including for the 2006-2007 award year." The Nov. 1 regulations finalize the interim final regulations published July 3, 2006.
Unchanged Items in ACG/SMART Rule
Although it will take some time for NASFAA staff to thoroughly review the regulations and understand the implications, several noteworthy items include:
- No change on the exclusion of Title IV-eligible certificate programs from the definition of an eligible program.
- No change on the requirement that an institution participate in the ACG and National SMART Grant programs to continue participation in the Pell Grant Program.
- No change in the exclusion of an administrative expense allowance for the ACG and National SMART Grant programs.
- No change in the calculation of Grade Point Averages (GPAs).
- No changes to requirements for documenting the completion of a rigorous secondary school program of study.
Regulations Implement Other HERA Changes
On Nov. 1, the Department also issued regulations to implement other changes to the Higher Education Act (HEA) required by recent legislation. These regulations make no substantive changes to the interim final rule issued Aug. 9, 2006. Some technical and conforming changes are effective Dec. 1, 2006.
Again, NASFAA staff will review both sets of regulations and highlight items of interest or concern as soon as possible. In addition, we encourage you to look carefully at both rules to understand how they will affect your students and your institution. We will post additional information on the NASFAA Web site.
Posted November 2, 2006 on www.NASFAA.org, the Web Site of the
National Association of Student Financial Aid Administrators (NASFAA).
Copyright 2006. Redistribution to non-NASFAA institutions is prohibited
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