Proposed Regulatory Language

Committee II – ACG/National SMART Grant

Issues

Origin: ED

Issue #1: Rigorous secondary school programs –

recognition

Regulatory Cite: §691.16

Summary of Issue: Section 401A(f) of the HEA requires the

Secretary to recognize at least one rigorous secondary
school program of study in each State to determine student
eligibility for an ACG. The regulations provide that, for
an award year, the Secretary recognizes at least one
rigorous secondary school program of study in each State
identified by an SEA or by an LEA. In §691.16(d) the
Secretary also recognized certain secondary school programs
of study as rigorous that are in addition to any that may
subsequently be explicitly identified by SEAs and LEAs and
recognized by the Secretary to ensure that deserving
students will be able to establish their eligibility for an
ACG. Should the regulations be modified?

Summary of Change: Provides that SEAs can request

recognition of rigorous secondary school programs of study
for students graduating during current and upcoming school
years; adds language to the advanced or honors secondary
school programs of study option from the Secretary’s list
of recognized rigorous secondary school program options to
provide for recognition of these programs by the Secretary
for school years subsequent to the 2004-2005 school year.

Information from 3/5-3/6/07 meeting: A discussion paper

delineating three options for rigorous secondary school
programs of study and two options for documenting a
rigorous program was provided to the negotiators. In
general, negotiators appeared to favor the current
regulations. The third option under rigorous programs -
aligning rigor to the coursework admission requirements of
the state’s most selective public university - was seen as
too limiting to states, although negotiators understood
that aligning rigor with higher education requirements was

1
important. Group members favored the idea of allowing
states to put forth rigorous secondary school programs of
study for out-years. There was also some discussion around
the validity of the AP/IB option and whether other vendors
should be added if this option was retained.

For documentation of rigorous programs, in relationship to

data flow of eligible students in the second option, there
was some concern that states would be unable to provide
information to Federal Student Aid in time to process
awards.

Change:

§691.16 Recognition of a rigorous secondary school program

of study.

(a) For an award year, the Secretary recognizes in each

State at least one rigorous secondary school program of
study as designated established by an SEA or, if legally
authorized by the State to establish a separate secondary
school program of study, an LEA.

(b) For each award year, the Secretary establishes a

deadline for SEAs and LEAs to submit information about the
secondary school program or programs that the SEA or LEA
designates identifies as a rigorous secondary school
program of study, and, in the case of an LEA, documentation
that the LEA is legally authorized by the State to
establish a separate secondary school program of study. An
SEA and LEA, if applicable, may submit information—

(1) For students graduating during the current school year;

and

(2) For students graduating during one or more specified

upcoming school years.

(c) In designating identifying a rigorous secondary school

program of study, the SEA, or the LEA if applicable, must
consider separate identifiable secondary programs that—

(1) Are offered by secondary schools in the State,

including public, charter, private, tribal, and home
schools;

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(2) Are considered by the SEA, or by the LEA if applicable,
to prepare a student to successfully pursue postsecondary
education successfully; and

(3) Are not General Education Development (GED) Certificate

programs.

(d) In addition to those programs designated identified by

States or LEAs and recognized by the Secretary as rigorous
under paragraphs (b) and (c) of this section, the Secretary
recognizes the following secondary school programs of study
as rigorous:

(1) Advanced or honors secondary school programs

established by States and in existence for the 2004-2005
school year or later school years or 2005-2006 school year,
as identified by the Secretary.

(2) Any secondary school program in which a student

completes at a minimum the following courses:

(i) Four years of English.

(ii) Three years of mathematics, including algebra I and a

higher-level class such as algebra II, geometry, or data
analysis and statistics.

(iii) Three years of science, including one year each of at

least two of the following courses: biology, chemistry, and
physics.

(iv) Three years of social studies.

(v) One year of a language other than English.

(3) A secondary school program identified by a State-level

partnership that is recognized by the State Scholars
Initiative of the Western Interstate Commission for Higher
Education (WICHE), Boulder, Colorado.

(4) Any secondary school program for a student who

completes at least two courses from an International
Baccalaureate Diploma Program sponsored by the
International Baccalaureate Organization, Geneva,
Switzerland, and receives a score of “4” or higher on the
examinations for at least two of those courses.

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(5) Any secondary school program for a student who
completes at least two Advanced Placement courses and
receives a score of “3” or higher on the College Board's
Advanced Placement Program Exams for at least two of those
courses.

(e) For each award year, the Secretary publishes a list of

rigorous secondary school programs of study that the
Secretary recognizes.

4
 Proposed Regulatory Language
Committee II – ACG/National SMART Grant
Issues

Origin: ED

Issue #2: 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.

Information from 3/5 – 3/6 meeting: This summary was

presented to the negotiators at the meeting. There were no
comments from the negotiators. Tentative agreement was
reached to make no changes.

Tentative agreement: Yes.

Change: None.

5
 Proposed Regulatory Language
Committee II – ACG/National SMART Grant
Issues

Origin: ED

Issue #3: 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

6
any undergraduate program at two- or four-year degree-
granting institutions of higher education are eligible to
receive an ACG.

The law encourages students to pursue two- or four-year

degree programs in science, math, technology, engineering,
or a critical foreign language. Therefore, considering
only degree-seeking students as eligible is consistent with
the overall structure of the ACG and National SMART Grant
programs.

Change: None. As a policy decision we believe that

considering only degree-seeking students as eligible is
consistent with the intent of the statute and overall
structure of the ACG and National SMART Grant programs.

Information from 3/5 – 3/6 meeting: Some members of the

committee wanted further consideration for students
enrolled in certificate programs to qualify for this grant.
One option was to only allow certificate programs that lead
to an associate’s degree. Another option was to allow
students enrolled in certificate programs that transfer
into a two- or four-year degree program within the same
award year to qualify. Still another option was a two-tier
approach that would first award to eligible students
enrolled in degree programs and any remaining funds would
go to students enrolled in certificate programs.

Tentative agreement: No.

7
 Proposed Regulatory Language
Committee II – ACG/National SMART Grant
Issues

Origin: ED

Issue #4: 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 (SAR) or valid
Institutional Student Information Record (ISIR) (and only
the institution paying the Federal Pell Grant will know
which SAR or ISIR is the valid one); and institutions must
report verification records for 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.

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Information from 3/5-7/07 meeting: This summary was
presented to the negotiators at the meeting. There were no
comments from the negotiators, and tentative agreement to
make no change was reached.

Tentative agreement: Yes.

Changes: None.

9
 Proposed Regulatory Language
Committee II – ACG/National SMART Grant
Issues

Origin: ED

Issue # 5a: 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

10
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.

Information from 3/5-7/07 meeting: Regarding the GPA for

transfers who are SMART-Grant eligible, negotiators
requested clarification. As modified below in “Changes
since 3/5-7/07 meeting”, alternative wording was used to
strengthen the clarification of numeric equivalent.

Rather than discuss the treatment of transfer students

separately in each section under ACG and National SMART
Grant, we reverted back to the use of a single, separate
paragraph (i.e., paragraph (d)) outlining the treatment of
transfer students. Acknowledging the differences between
the two programs, we addressed separately within paragraph
(d) the treatment of transfer students eligible under each
program. For ACG, the proposed changes provide that, in the
case of a transfer student who has completed the first
academic year upon transfer, the GPA to qualify for a
second-year ACG is the cumulative GPA at the end of the
first academic year calculated using the grades from
coursework accepted by the current institution from all
prior postsecondary institutions. For the transfer student
who has not completed the first academic year upon
transfer, the GPA is the combined GPA of the coursework
from all prior postsecondary institutions accepted by the
current school combined with the grades from coursework
earned at the current school that complete the first
academic year.

For National SMART Grants, the structure of the regulatory

language was changed for clarity, and the section regarding
a student who transfers with no credits accepted was
deleted as it was not applicable to SMART Grant eligible
students and should have been deleted previously. For
consistency and clarity, the phrase “into the eligible
program” was added to the new (d)(2).

Tentative agreement: No.

Changes based on 3/5-7/07 meeting:

§691.15 Eligibility to receive a grant.

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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 for 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 numeric 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.

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(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;

13
(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;

(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 numeric equivalent, consistent with other
institutional measures for academic and title IV, HEA
program purposes, in the student's eligible program; and

(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.

(d) Transfer student.

(1) ACG. (i) For a transfer student who has completed the
first academic year upon transfer, the GPA to determine
second-year eligibility for an ACG is calculated using the
grades from all coursework from all prior postsecondary
institutions that--

(A) Are accepted by the current institution; and

(B) Complete the student’s first academic year.

(ii) 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 using the grades

14
from all coursework from all prior postsecondary
institutions that—

(A) Are accepted by the current institution; and

(B) When combined with grades from coursework earned at the

current institution, complete the student’s first academic
year.

(2) National SMART Grant. If a student who is eligible for

a National SMART Grant transfers from one institution to a
subsequent institution, the subsequent institution must
determine that student’s eligibility for the first payment
period using the appropriate method in paragraph (d)(2)(i)
or (d)(2)(ii) of this section that coincides with the
institution’s academic policy. For an eligible student who
transfers to a subsequent institution that—

(i) Does not incorporate grades from transfer coursework

into the GPA at the subsequent institution, the subsequent
institution, for the courses accepted into the eligible
program upon transfer—

(A) 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 postsecondary institution
that it accepts towards the student’s eligible program; and

(B) Must apply its academic policy for subsequent payment

periods and not incorporate the grades from the transferred
courses into the GPA at the subsequent institution; or

(ii) Incorporates grades from the transferred coursework

into the GPA 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 in accordance
with its academic policy.

(Authority: 20 U.S.C. 1070a-1)

15
 Proposed Regulatory Language
Committee II – ACG/National SMART Grant
Issues

Origin: ED

Issue # 5b: 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.

Information from 3/5-7/07 meeting: No changes.

16
Tentative agreement: Yes.

Changes since 3/5-7/07 meeting: None.

17
 Proposed Regulatory Language
Committee II – ACG/National SMART Grant
Issues

Origin: ED

Issue # 5c: 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

18
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:
(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 numeric equivalent
numeric measure, consistent with other institutional
measures for academic and title IV, HEA program purposes.

National SMART Grant:

(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 numeric equivalent numeric measure,
consistent with other institutional measures for academic
and title IV, HEA program purposes, in the student’s
eligible program;

Information from 3/5-7/07 meeting: No changes.

Tentative agreement: No.

Changes since 3/5-7/07 meeting: Alternative wording was
used to strengthen the clarification of numeric equivalent
as modified above.

19
20
 Proposed Regulatory Language
Committee II – ACG/National SMART Grant
Issues

Origin: ED

Issue # 5d: 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.

Information from 3/5-7/07 meeting: No changes.

Tentative agreement: Yes.

Changes since 3/5-7/07 meeting: None.

21
 Proposed Regulatory Language
Committee II – ACG/National SMART Grant
Issues

Origin: ED

Issue #6: 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. Based on
the March 5-7, 2007 meeting, a significant revision was not
made to provide for a student-by-student consideration of
options for determining a student’s weeks of instructional
time at traditional calendar institutions instead of
requiring that one of these options be used for all
students enrolled in an eligible program.

Information from 2/5-7/2007 meeting: 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

22
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.

Information from 3/5-6/07 meeting: The proposed language

was reviewed in detail. Also, a series of case studies
that illustrated the impact of draft regulations were
presented and discussed.

Concerns continued to be raised concerning the impact of

the academic year progression on student eligibility and on
the difficulties for institutions administering the grant
programs. Negotiators continued to favor multiple options
for institutions to determine the weeks of instructional
time completed by a student under §691.6(f), (g), and (h).
However, they objected to the restriction in §691.6(g) and
(h), that an institution must not consider weeks of
instructional time based on credits accepted towards the
student’s eligible program that the student earns from
Advance Placement programs, International Baccalaureate
programs, testing out, life experience, or other similarly
earned credits or credits earned while not enrolled as a
regular student in an ACG or National SMART Grant eligible
program. These credits are earned while not enrolled in an
ACG or National SMART Grant eligible program and,
therefore, do not have weeks of instructional time in an
ACG or National SMART Grant eligible program associated
with them.

Negotiators also favored providing a student-by-student

determination of options for determining a student’s weeks
of instructional time under §691.6(f), (g), and (h) instead
of requiring that one of these options or an exact
determination be used for all students enrolled in an
eligible program.

Change:

§691.6 Duration of student eligibility—undergraduate course

of study.

(a) A student is eligible to receive up to one ACG

23
Scheduled Award during each of the student’s first and
second academic years of enrollment over the course of the
student’s undergraduate educationenrollment at an
institution 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 educationenrollment
at an institution 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.

(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 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 theincluding credits or clock hours that are earned--

(i) From Advanced Placement (AP) testsprograms,

International Baccalaureate (IB) testsprograms, testing

24
out, life experience, or similary competency measuresearned
hours the hours are earned; or

(ii) At an institution while not enrolled as a regular

student in an eligible program.

(2) An institution may not assign any weeks of

instructional time to credit or clock hours credited
accepted towards meeting the student’s eligible program
that the student earns—

(i) From Advanced Placement (AP) testsprograms,

International Baccalaureate (IB) testsprograms, testing
out, life experience, or similarly earned hours the hours
are earned competency measures; or

(ii) At a postsecondaryn institution while not enrolled as

a regular student in an eligible program.

(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.

(4) For a transfer student, an institution determining the

amount of credit or clock hoursacademic years completed by
the student shall countshall consider that--

(i) The number of credit or clock hours a student has

enrolled in an eligible program includes the number of
hours accepted on transfer into the student’s eligible
program; and

(ii) For The weeks of instructional time, except as

prohibited in (g)(iv), that bear the same proportion to the
proportion of those credits or clock hours accepted on
transfer are as the weeks of instructional time to the
hours and weeks of instructional time of the eligible
program’s academic year.in the eligible program’s academic
year bear to the credit or clock hours in the eligible
program’s academic year.

(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 provided for
eligible programs under paragraphs (f), (g), and (h) of
this section if the institution--

25
(1) Provides to the a student to a student 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
if the student either requests that such a determination be
made or questions whether he or she has completed one or
more academic years; and

(2) Determines payments for the student’s eligible program

under §691.63(b) or (c); and.

(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—

(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

(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).

(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—

26
(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

(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).

(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 (fg)(2) and or (fg)(3) of
this section.

(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 hours
that were taken during that of theacademic year.

(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
hours that were taken during that of academic year.

(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 testsprograms, IB
testsprograms, testing out, life experience, or other
similarly earned credits or credits earned while not
enrolled as a regular student in an eligible program.

(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

27
eligible program—

(i) A student must has completed at least the minimum

credit hours for the prior of an academic years for that
program in accordance with this section; and

(ii) Most full-time students in the student’s eligible

program complete the weeks of instructional time of an
academic year over at least the weeks of instructional time
of an academic year during the period of completing each
grade level as determined in accordance with paragraph
(h)(3) of this section.

(2) In determining grade level for a particular student for

purposes of paragraph (h)(1), an institution may not
consider credits towards the student’s eligible program
that the student earns from AP testsprograms, IB
testsprograms, testing out, life experience, or other
similarly earned credits or credits earned while not
enrolled as a regular student in an eligible program.

(3) In making a determination under paragraph (h)(1)(ii) of

this section, an institution shall determine that two-
thirds of the full-time students in an eligible program
completed at least the weeks instructional time of an
academic year while completing each grade level during the
three award years prior to the first calendar year of the
award year for which a student is receiving a grant under
this part.

28
 Proposed Regulatory Language
Committee II – ACG/National SMART Grant

Origin: Community

Issue #7: 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

29
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.

Information from 2/5-7/2007 meeting: There was some

discussion on 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.

Information from 3/5-6/2007 meeting: A proposed change to

narrow the scope of the disqualification provision in the
statute was presented to the negotiators as discussed
during the prior negotiating session. Tentative agreement
was reached to make the change.

Tentative agreement: Yes.

Change:

§691.15 Eligibility to receive a grant.

* * * * *

30
 (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;

31
 Proposed Regulatory Language
Committee II – ACG/National SMART Grant
Issues

Origin: Community

Issue #8a: 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,

32
the Secretary publishes a list of eligible majors
identified by the Classification of Instructional Programs
(CIP) code.

(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.

(1) Requests for designation of an additional eligible

major must include—

(i) The CIP code of the additional major;

(ii) The reason(s) the institution believes the additional

major should be considered eligible under the statute; and

(iii) Documentation that an institution has actually

awarded or plans to award a bachelor’s degree in the
requested major.

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

(ec) 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.

Information from 3/5-3/6/07 meeting: Draft regulations in

context were presented to the negotiators. There were no
further concerns from the negotiators. Tentative agreement
on the proposed language was reached.

Tentative Agreement: Yes.

Draft Federal Register Instructions for Amendatory Language:

Section 691.17 is amended by:

A. Redesignating paragraph (c) as paragraph (e).

B. Adding new paragraphs (c) and (d).

33
The additions read as follows:

§691.17 Determination of eligible majors.

*****

(b) ***

(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.

(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.

(1) Requests for designation of an additional eligible

major must include—

(i) The CIP code and program title of the additional

major;

(ii) The reason(s) the institution believes the

additional major should be considered eligible under the
statute; and

(iii) Documentation that an institution has actually

awarded or plans to award a bachelor’s degree in the
requested major.

(2) For each award year, the Secretary will confirm

the final list of eligible majors.

34
 Proposed Regulatory Language
Committee II – ACG/National SMART Grant
Issues

Origin: Community

Issue #8b: 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

35
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

36
(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

37
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

(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;

(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;

(4) For the third academic year, has successfully completed

the second academic year of his or her eligible program;
and

38
(5) For the fourth academic year, has successfully
completed the third academic year of his or her eligible
program.

(d) A student—

(1) Demonstrates his or her intention to declare an

eligible major by providing a written declaration such as,
but not limited to--

(i) Self-certification of intent to major in an eligible

major signed by the student; or

(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.

(e) Documentation of coursework progression in the eligible

program and major may include, but is not limited to—

(i) Written counselor or advisor tracking of coursework

progress toward a degree in the intended eligible major at
least annually;

(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

(iii) Other written documentation of coursework that

satisfies the ongoing nature of monitoring student
coursework progression in the intended eligible major at
least annually.

(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;

39
 (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.

(fe) 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.

Information from 3/5-3/6/07 meeting: Draft regulations in

context were presented to the negotiators. There were no
further concerns from the negotiators. Tentative agreement
on the proposed language was reached.

Tentative Agreement: Yes.

Draft Federal Register Instructions for Amendatory Language:

Section 691.15 is amended by:

A. Revising paragraph (c)(2)(i)(B).

B. Removing paragraphs (c)(2)(i)(B)(1) and (c)(2)(i)(B)(2).

C. Revising paragraph (c)(2)(ii).

D. Redesignating paragraph (d) as paragraph (f).

E. Adding new paragraphs (d) and (e).

The revisions and additions read as follows:

40
§691.15 Eligibility to receive a grant.

* * * * *

(c) * * *

(2) * * *

(i) * * *

(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 in accordance with
paragraph (d) of this section; and

(ii) 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;

* * * * *

(d)(1) A student whose institution’s academic policies do

not allow a student to declare an eligible major in time to
qualify for a National SMART Grant demonstrates his or her
intention to declare an eligible major by providing a recent
self-certification of intent to declare an eligible major
signed by the student.

(2) The student described in (d)(1) must formally declare

an eligible major when he or she is able under the
institution's academic requirements.

(e) Documentation of coursework progression in the eligible

program and major under §691.15(c)(2)(ii) may include, but
is not limited to—

(i) Written counselor or advisor tracking of coursework

progress toward a degree in the intended eligible major at
least annually;

(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

41
at least annually; or

(iii) Other written documentation of coursework that

satisfies the ongoing nature of monitoring student
coursework progression in the intended eligible major at
least annually.

42
 Proposed Regulatory Language
Committee II – ACG/National SMART Grant
Issues

Origin: Community

Issue #9: 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;

43
(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 a high school diploma or the certification
of completion of a secondary school education by the
cognizant authority;

(B)(A) Has successfully completed, after January 1, 2006, a

rigorous secondary school program of study recognized by
the Secretary under §691.16, as determined by the
institution; and

(C)(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 received a high school diploma or for a home-

schooled student a high school diploma or the certification
of completion of a secondary school education by the
cognizant authority;

(A)(B) Has successfully completed, after January 1, 2005, a

rigorous secondary school program of study recognized by
the Secretary under §691.16, as determined by the
institution; and

(B)(C) Has successfully completed the first academic year

of
his or her eligible program; and

(C)(D) 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 numeric equivalent numeric,
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), (b)(1)(ii)(B), (b)(1)(iii)(A) and
(b)(1)(iii)(A)(B) of this section using--

(A) Documentation provided directly to the institution by

44
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) 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 successfully completing,
and graduating from, 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, 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),
and (b)(1)(iii)(B)(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.

45
Information from 3/5 – 3/6 meeting: One committee member
wanted the regulations to indicate that home-schooled
students could also obtain a high school diploma as proof
that he/she completed a secondary school education.
Another member felt that the Department did not clarify in
the regulations what is meant by successfully completed a
rigorous secondary school program of study but confused
matters more by adding a graduating requirement. Committee
members felt that a tentative agreement on clarifying what
successful completion of a rigorous secondary school
program of study could not be reached because it was too
closely tied to changes being made to who defines rigor and
that both issues must be reviewed simultaneously.

46
 Proposed Regulatory Language
Committee II – ACG/National SMART Grant

Origin: Community

Issue #10: 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 2006-07 processing year, FSA
has instituted some systems changes to help institutions
track ACG/SMART eligibility.
Federal Student Aid will not edit on grade level between
grants and loans because the definitions are different.
Also, beginning with the Common and Origination (COD)
System 6.0 release, scheduled for April 16, 2007
implementation, a system-generated warning Multiple
Reporting Record (MRR) will be sent to schools for students
that are concurrently enrolled in multiple schools and are
receiving ACG/SMART disbursements. A school can also
request an MRR that provides information to a school about
students at other schools and the amount of ACG/SMART
award(s) disbursed. Additionally, FSA will likely add
comment codes reporting a student’s remaining eligibility
for an ACG or National SMART Grant for the 2008-09
application processing year, and will likely add a COD data
element to indicate the percentage of eligibility a student
has used by academic level. Currently, FSA does not plan to
track ACG/SMART denial reasons and will therefore not

47
require schools to submit this information.

Information from 3/5/07 meeting: The Department has

developed a multifaceted approach for evaluating the
Academic Competitiveness (ACG) and National SMART Grants
(SMART) programs. The purpose of these evaluation
activities is to analyze the efficacy of the ACG SMART
programs. A part of this evaluation strategy, the
Department will use data from two waves of the National
Postsecondary Student Aid Study (NPSAS) – one of which
occurred prior to the implementation of these new programs
and one of which will occur in the second year of
implementation of these new programs. These data elements
will be incorporated into the study to determine whether or
not the programs are reaching the target audience. Data
analysts will pull information regarding ACG and National
SMART grant recipients from the pool of students who are
selected to participate in the survey. If any additional
information is required (transcripts, proof of rigor,
etc.,) the Department will request the information from the
appropriate source.

Tentative Agreement: Not applicable

Changes: None.

48