Frank O’Bannon
and
21st Century Scholars
Completion Requirements
Indiana Commission for Higher Education
Division of Student Financial Aid
March 14, 2014
Introduction
• This 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/.
Focus on Four Years
• Most 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.
Focus on Four Years
• In 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 21st Century Scholars graduate with a
bachelor’s degree within four years
– Only 14.5% same degree, same campus
Cost of a Fifth Year – and Debt
• A 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.
Financial Aid Reform
• Beginning 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”
Purpose of the new requirements
• Increase college completion rates for students
receiving state financial aid
• Reduce the total cost of college for students
– Graduating 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 transparent
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 20132014 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.
Completion Requirements
Frank O’Bannon Program
• Complete a minimum of 24 credit hours (or
the equivalent) by the end of the first year the
student receives financial aid
• Complete 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 aid
Frank O’Bannon Award Incentives
• Students will receive more money if they…..
– Complete 30 credit hours or more each year (“ontime” 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)
Completion Requirements
21st Century Scholars Program
• Complete 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 aid
Completion Requirements
21st Century Scholars Program
• If 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.
Key points to remember
• The 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 award
Grandfathered Students
• Students not subject to completion standards:
– Receive On-Time award based on their EFC and
corresponding school in the Grid
– Receive 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)
Frank O’Bannon Students
• The following seven (7) slides apply only to
the Frank O’Bannon program.
• We will review examples from public, private
and proprietary schools.
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.
Using the Grid – Base Awards
• Use Initial Awards
– Incoming 2014-15 first-year students
– Students who have never received a state financial
aid award before
• Use Renewal Awards
– Students 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)
Using the Grid - Incentives
• For 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)
$0 Base Awards
• The 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.
Example 1
• Student who received first state financial aid award in 20122013, EFC of $2000, Academic Honors Diploma
– Student is not subject to completion requirements because first state
financial aid award was prior to 2013-2014
– Student 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) = $1,500
Example 2
• Student who received first state financial aid award in 20122013, EFC of $3000, Academic Honors Diploma
– Student is not subject to completion requirements because first state
financial aid award was prior to 2013-2014
– Student 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) = $700
Example 3
• Received first state financial aid award in 2013-2014, EFC of
$1000, Academic Honors Diploma, 2.0 GPA, 29 credits
– Student is subject to completion requirements because first state
financial aid award was in 2013-2014
– Student 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)
Example 4
• John 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)
Example 5
• Tom 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 program
– Subject to completion requirements in future
– Packaged 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)
Example 6
• George 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
Packaged 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)
21st Century Scholars
• The 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.
Scholar Opt Out/Opt In
It 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.
Scholar Opt Out/Opt In
If 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.
Scholar Example 1
2014-2015: 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.
Scholar Example 2
2014-2015: 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).
Scholar Example 3
• Scholar received first state financial aid award in 2012-2013,
EFC of $3000, Academic Honors Diploma
– Student is not subject to completion requirements because first state
financial aid award was prior to 2013-2014
– Student 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: $3,904
File Layouts
• New file layouts will be done within two weeks.
– NOTF – out week of March 17
– Credit completion/GPA – out week of March 17
– RECN – out week of March 24
• Incentive 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.
CHE – Institution Data Exchange
• By 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.
CHE – Institution Data Exchange
• SFA will create awards in June based on FAFSAs and
the credit/GPA information collected
• SFA 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 .
Data Elements Needed
• Enrollment date
• Use 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)
Reconciliation
• Beginning with 2014-2015, will have “rolling
reconciliation” cycle
• One 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.
Spring 2014 Starts
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•
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•
•
•
•
Students 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.
Spring 2014 Starts
• For 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 20152016 from the 2015-2016 FAFSA.
2013-2014 Summer Aid
• 21st 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.
2014-2015 Summer Aid
• Students 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.
Transfer Hours
SFA will provide the following information to all schools:
1) Period during which the student received their first state award (to
grandfather students not effected by the 30 credit hour
requirement),
2) What 12 month academic period student is in for purposes of
counting credit hours (i.e. Aug to Aug, Jan to Jan)
3) 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.
Frequently Asked Questions
Question: 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 fulltime 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 21st
Century Scholarship awards.
Frequently Asked Questions
Question: 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.
Frequently Asked Questions
Question: 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.
Frequently Asked Questions
Question: 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)
Frequently Asked Questions
Question: 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.
Frequently Asked Questions
Question: 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.
Frequently Asked Questions
Question: 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.
Frequently Asked Questions
Question: 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.
Frequently Asked Questions
Question: How will transfer hours reporting be handled?
Answer: SFA will provide the following information to all schools:
1) Date of first award (will assist schools in determining if the student
was grandfathered or not)
2) What 12 month academic period student is in for purposes of
counting credit hours (i.e. Aug to Aug, Jan to Jan)
3) How many years left on four year limit
4) The number of credits earned up to point of transfer
1)
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.
Frequently Asked Questions
Question:
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 21st 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.
Frequently Asked Questions
Question:
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.
Frequently Asked Questions
Question: 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)
Frequently Asked Questions
Question: 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.)
Frequently Asked Questions
Question: 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.
Frequently Asked Questions
Question: 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.
Frequently Asked Questions
Question: 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.
Contact Us
Division of Student Financial Aid – Awards
P: 888-528-4719
F: 317-232-3260
E: Awards@che.in.gov or CollegeFA@che.in.gov
W: www.in.gov/sfa