State Aid in Texas

1. State Aid in Texas Spring, 2010 Presenter: Jane Caldwell, Dir., Grants & Special Pgms. Texas Higher Education Coordinating Board grantinfo@thecb.state.tx.us

2. All Aid by Source 2008-2009

3. All Aid by Type – 2008-2009

4. All Lns. & Grnts. by Income

5. Major Programs, 2008-2009 • Unsubsidized Loans $1,647,617,916 • Subsidized Lns. $1,468,336,240 • Pell Grants $1,072,525,997 • PLUS Loans $ 321,832,047 • Merit Aid by Inst. $ 314,848,923 • TEXAS Grants $ 230,316,128 • Other Grants/Schol. $ 202,832,325

6. Trends in State Aid The state subsidizes students enrolled in public institutions. Tuition and fees only cover a portion of the total costs to provide education. Therefore, to control costs, state aid policies: • Encourage students to be efficient • Penalize students for inefficiency

7. A Push for Efficiency • Early H.S. Graduation Scholarship Pgm. • Tuition Rebates • ¾ or full-time enrollment for TXG, TEG, and BOT • Requirement of 24 hrs/yr – TEG, TXG • GPA requirements for TXG, TEG, TEOG, BOT

8. Penalties for Inefficiency • Loss of state aid eligibility after XX years or YY semester credit hours (SCH) • Full-cost tuition if repeating a class for the 3rd time • Full-cost tuition once you have completed 30 SCH beyond your undergraduate degree plan • Limit to 6 dropped classes without impact on GPA

9. State Aid

10. How New Programs Begin • Legislature passes statute; • Legislature appropriates funds; • CB writes & adopts rules; and • If a decentralized program, institutions select recipients. • If centralized, apps are submitted to CB, which selects/identifies recipients

11. Administration • Decentralized (Campus-based) Operations • Centrally-administered Programs • Programs Administers Solely on Campus

12. Decentralized Programs Cycle • CB calculates & announces allocations; • Institutions package awards; • Students accept offers; • Institutions request funds from CB; • CB issues funds; • CB reallocates funds at program deadline; • Institutions submit year-end reports; • New year begins again at Step 1.

13. Decentralized Deadlines • Allocated funds “belong” to the institutions only until the reallocation date, (February 20 in spring 2010). Funds not drawn down by the deadline are FORFEITED by the school and reallocated by the CB to other institutions. • Institutions must issue the funds they receive from the CB or apply them to student accounts within 5 days of the funds’ arrival.

14. Centralized Programs Cycle • Institutions or high schools submit applications to CB; • CB processes applications and confirms eligibility or ranks applicants & selects recipients; • CB announces award recipients to insts.; • Institutions request funds and provide documentation of award value; • CB issues funds (up to student’s award amount).

15. Inst. Pgms. -- Exemptions • Allow special populations to pay lower tuition and/or fees • Must be applied for through the college (other than EHS and Educational Aides) • Include programs for persons who are: ºBlind or Deaf º TANF recipients º Valedictorians º Foster Care º Adopted º Dual enrolled º Middle/high school students playing “Taps” º Children of deceased/disabled veterans, peace officers, firefighters, MIAs, POWs & others

16. Inst. Pgms. -- Waivers • Allow nonresidents to register while paying the resident tuition rate. • Must be applied for through the college • Include programs for: • Military stationed in Texas; • Research and teaching assistants • Competitive scholarship recipients

17. Programs

18. Requirements: Enroll at public institution Financial need Selective Service Registration Funded through tuition set-asides. Administered as per CB-approved guidelines. Continuation… Is not an entitlement; renewal awards occur at institution’s discretion No statutory end to student eligibility TX Public Ed. Grants

19. Requirements: TX residency Entering undergrad HS grad. with RHSC or ADP or receipt of AD within 16 mo. of college enrollment No bachelor’s degree EFC ≤ $4000 for IY or [COA-EFC-Gift Aid] <= .5*COA ¾-time enrollment No drug conviction Selective Svce. Reg. To continue: End of 1st year – inst academic progress Thereafter, overall GPA of 2.5; 75% completion rate/year and 24 credit hours completed/year Eligibility ends when receive BA, reach 150 hours or 5 yrs for 4-yr plans; 6 yrs for 5-yr plans TEXAS Grants

20. Requirements: TX residency Undergrad enrollment at 2-year public institution EFC ≤ $2000 for IY or [COA-EFC-Gift Aid] <= .5*COA >=1/2-time enrollment No drug conviction Selective Svce. Reg. To continue: End of 1st year – inst academic progress Thereafter, overall GPA of 2.5; 75% completion rate/year Eligibility ends at75 semester credit hours, four years, or when the student receives an associate's degree, whichever comes first TEOG Grants

21. Requirements: Enroll in private, non-profit institution Full-time enrollment Texas resident or National Merit Finalist Not receiving athletic scholarship Undergrad or grad Selective Service Reg. Continuation… Is at discretion of institution (no entitlement). Requires at least 2.5 GPA and completion of at least 24 hrs/year (ugr); 18 hrs/yr (grad). Eligibility ends for undergrads at 5 yrs for 4-year degrees; 6 yrs for 5-yr plans. Tuition Equalization Grants

22. Top 10% Scholarship • Initial Award Eligibility. Student must be: • A Texas resident; • Ranked in top 10% of class at the time the institution makes its admissions decisions; • Complete Recommended or higher curriculum; • Graduate from accredited HS in TX spring 2009; • Enroll in public college or university in TX; and • Show financial need. * Entitlement if student completed FAFSA by April 1, 2009. Thereafter, the award will be made if funding is available.

23. Top 10% - More • Award Amount = $2,000 • Workforce Bonus: • Major in critical workforce shortage fields identified by the CB • Enroll as college juniors or seniors; and • Have overall GPA of 3.0 at the beginning of the relevant junior or senior year. • Hardship provisions will be developed for fewer hours, lower GPA, lower completion rate.

24. Top 10% - Cont. Awards • Contingent upon additional funding from the Legislature • Continuation award requirements: • Complete 30 SCH in prior year; • Maintain a cumulative 3.25 GPA; and • Complete at least 75% of the hours attempted.

25. Institutions must check for: Residency; Selective Service Registration; That student is meeting institution’s SAP; and Enrollment in studies leading to a teaching certificate Award amounts = tuition and fees less laboratory and course fees. Verification screen site: https://www1.thecb.state.tx.us/apps/ SpecialPrograms/ Educational Aide Exemption Pgm.

26. Early H.S. Graduation Scholarships • Institutions must check: • Residency; and • Selective Service Registration. • Awards = $500-$3,000, depending on how early the student graduates and the number of college hours earned before HS graduation. • Verification screen site: https://www1.thecb.state.tx.us/apps/ SpecialPrograms/

27. Requirements: TX residency Full-time enrollment Due to current funding, only renewal applicants for 2008-2009 To continue: Overall GPA of 2.5; 75% completion rate/year Loan Forgiveness: If graduate with 3.0 overall GPA within 4 yrs for 4-yr degree, 5 yrs for 5-yr degree, or 2 yrs for 2-yr degree/cert, or With no more than 6 hrs beyond degree requirements. TX B-On-Time Loan (BOT)

28. Requirements: Texas resident ½ time enrollment Meet SAP Receive favorable credit evaluation or provide cosigner Other Features: Low fixed interest rate 3% orig fee Borrow up to COA (less fed. Stafford and other gift aid) 6-mth grace 10-year repayment; 20-year if balance >$30,000 College Access Loan (CAL)

29. Questions? • CB: 1-800-242-3062 or 512-427-6340 • FA Hotline 1-888-331-8881 • http://www.collegeforalltexans.com • grantinfo@thecb.state.tx.us • TEXASgrant@thecb.state.tx.us • teog@thecb.state.tx.us • teg@thecb.state.tx.us