State Aid in Texas

1. State Aid in Texas TASFAA ABC’s Pre-Conference Workshop October 10, 2012 Jane Caldwell Director, Grants and Special Programs Texas Higher Education Coordinating Board jane.caldwell@thecb.state.tx.us

2. The Texas Higher Education Coordinating Board (THECB) • Purpose Created by the Texas Legislature in 1965 to provide leadership and coordination for the Texas higher education system to achieve excellence for the college education of Texas students. • Responsibilities • Assess the state of higher education in Texas; • Develop recommendations to the Legislature, Governor, and institutions for its enhancement; and • Establish policies for the efficient and effective use of the state’s higher education resources.

3. Main Responsibilities of G&SP and LPO • Provide service to students, families, and institutions. • Interpret legislation and develop rules. • Allocate available funding and process funding requests. • Process applications. • Collect student loan payments and process benefits. • Provide training. • Perform program reviews and audits. • Collect and provide information requested by the Legislature.

4. The Birth of a State Program • Legislature passes a statute authorizing a program. • Legislature appropriates funds – or not. • THECB writes & adopts rules – if applicable. • Programs are administered as: • Centralized (CB-Based) • Decentralized(Campus-Based) • Solely at the institutional level

5. State Programs and Trends • Grants, Scholarships, Loans, and Work. • Exemptions – allow lower tuition/fees for certain groups. • Waivers – allow resident fees for non-resident students. • Trends: • Encourage efficiency through: • required enrollment. • performance. • completion. • Penalize inefficiency through: • time limitations. • drop limitations. • added costs for exceeding limitations.

6. Sources of Aid in Texas (FY11)

7. Institutional Responsibilities • Participation: • Eligible institutions – defined in statute • Signed agreements/MOU’s with the CB • Statutes and rules • Program guidelines and allocations • Funding requests and required reports • Audits and program reviews • Shadowing Federal Processes: • Federal Methodology (FM) • FAFSA or TASFA (residents unable to complete FAFSA process) • Verification • SAP, unless overridden by state SAP requirements

8. Texas Public Education Grant (TPEG) • Provide grants to needy students at public institutions. • Funded through statutory tuition set-asides. • Eligibility requirements: • enroll at a public institution • financial need • register with Selective Service or be exempt (public universities, health-related institutions, TSTC campuses and Lamar State Campuses – not community colleges) • Awarded based on institution’s policies and procedures. • Eligibility continuation: • not an entitlement – renewal awards occur at the institution’s discretion • no statutory end to student eligibility

9. Toward EXcellence, Access, & Success (TEXAS) Grant • Provide grants to academically-prepared needy students at public institutions – funded through appropriations. • Initial eligibility requirements: • entering undergraduate with the recommended high school curriculum (or higher) or an associate’s degree. • Texas resident with need, an EFC < 4,000, and enrolled at least ¾ time. • registered with Selective Service (or exempt) and no drug conviction. • Renewal eligibility requirements: • calculated need • end of 1st year – institution’s SAP policy; end of 2nd year and thereafter – overall GPA of 2.5, 75% annual completion rate, and 24 SCH’s completed/yr. • eligibility ends with bachelors, 150 grant SCH’s, or 5 yrs for 4-yr plan/6 yrs for 5-yr plan.

10. TXG Priority Model – Starts Fall 2013 • Stronger emphasis needed to improve student outcomes and increase student success by giving priority to financially needy students who achieved certain standards/proven success benchmarks. • Priority will be given to students who meet the priority deadline and have any two of the following : • Left-over funds after priority students are awarded will go to other eligible students meeting current requirements. • Only applies to universities, Lamar-Orange and Lamar-Port Arthur.

11. Texas Educational Opportunity Grant (TEOG) • Provide grants to needy students at public 2-yr institutions. • Funded through appropriations • Initial eligibility requirements: • entering undergraduate not receiving a TEXAS Grant. • Texas resident with need,EFC< 2,000, and enrolled at least ½ time. • registered with Selective Service (or exempt) and no drug conviction. • Renewal eligibility requirements: • calculated need. • end of 1st year – institution’s SAP policy; end of 2nd year and thereafter – overall GPA of 2.5 and 75% annual completion rate. • ends with associate’s degree, 75 SCH’s, or 4 yrs.

12. Tuition Equalization Grant (TEG) • Provide grants to needy students at private/non-profit institutions. • Funded through appropriations. • Eligibility requirements: • Texas resident or National Merit Finalist with need and enrolled ≥¾-time. • Undergraduate or graduate. • registered with Selective Service (or exempt). • not receiving an athletic scholarship. • required to pay more tuition than is required at a comparable public inst. • Eligibility continuation: • GPA of 2.5 and annual completion rate of 24 hrs per yr UG and 18 hrs per yr GR. • UG – 5 yr max for 4 yr degree, or 6 yr max for 5 yr degree.

13. Top 10 Percent Scholarship • Purpose is to encourage outstanding high school graduates in the top 10 percent of their class to attend a public institution in Texas - funded through appropriations. • Eligibility requirements: • Texas resident registered with Selective Service (or exempt). • complete Recommended or higher curriculum, graduate from a public or private high school in Texas and rank in the top 10 percent of the HS graduating class. • submit the FAFSA/TASFA by the established deadline and (COA – EFC – PELL >=$1). • enroll full-time in the fall semester and maintain full-time enrollment through the census date. • Continued Eligibility • cumulative 3.25 GPA, complete 30 SCH and 75% of the hours attempted in the previous year. • Bachelor’s degree or 4 years – whichever comes first. • Bonus Award – junior/senior in workforce shortage area.

14. Texas B-On-Time Loan (BOT) • Purpose is to provide eligible Texas students no-interest loans and loan forgiveness upon graduation for meeting specific goals – funded through appropriations and tuition set-asides from 4 year public universities. • Eligibility requirements: • Texas resident enrolled full-time and eligible for federal aid. • Eligibility continuation: • end of 1st year – institution’s SAP policy. • thereafter, overall GPA of 2.5; 75% completion in the most recent year. • ends with completion of a Bachelor’s degree or 150 hours of BOT. • Repayment benefits: • loan forgiveness if graduation within a certain time frame, number of hours, and with a certain GPA. • 0% interest loan if not eligible for forgiveness.

15. College Access Loan Program (CAL) • Purpose is to provide alternative loans to Texas students who are unable to meet the cost of attendance. • Available at public and private/non-profit institutions. • Funded through the sale of state bonds. • Eligibility requirements: • Texas resident enrolled at least ½ time. • receive a favorable credit evaluation or provide an eligible cosigner who has good credit standing. • meet the institution’s SAP policy.

16. Texas College Work-Study (TCWS) • Purpose is to provide eligible Texas students employment as a means to fund their education. • Available at public and private institutions and funded through appropriations. Matching funds required unless proof is provided that matching is waived for FCWS. • Eligibility requirements: • Texas resident with financial need and enrolled at least ½-time. • Registered with Selective Service (or exempt). • Not receiving an athletic scholarship. • Not enrolled in a seminary or other religious program.

17. Other Programs • Exemptions/Waivers: • Hazlewood Exemption, Peace Officers and Fire Fighters Exemption, etc. • Scholarships: • Kenneth Ashworth Scholarship, Good Neighbor Scholarship, etc. • Programs not funded beginning with 11/12: • Educational Aide Exemption* • Early High School Graduation Scholarship • Combat Exemption* • Professional and Vocational Nursing Scholarships • TANF Exemption* • Byrd Scholarship • LEAP/SLEAP Grants * Exemption may be honored without reimbursement.

18. Questions or Need Assistance? • 1-800-242-3062 or 512-427-6340 • grantinfo@thecb.state.tx.us • lyn.kinyon@thecb.state.tx.us or extension #6393 • G&SP Distribution List: • Official communications – program guidelines, allocations, etc. • Subscribe or unsubscribe: • http://lists.state.tx.us/mailman/listinfo/txgnsp-l • G&SP Information Site: • Webinars, program information, report information, etc. • https://www1.thecb.state.tx.us/apps/SpecialPrograms/