Transcript Slide 1

Changes to State
Financial Aid
Programs 2009-2010
Presented by Ginny Dodds & Megan Fitzgibbon
MN Office of Higher Education
July 7, 2009
Overview
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Higher Education Bill and Unallotment Process
General Changes Related to Financial Aid
MN State Grant Program
Postsecondary Child Care Grant Program
State Work Study Program
SELF Loan
Safety Officer Survivor’s Grant Program
Summer Transition Grant Program
MN Indian Scholarship Program
MN GI Bill Program
Achieve Scholarship Program
Q&A
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Higher Education Bill &
Unallotment Process
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Higher Education Bill &
Unallotment Process
• Bill was signed by the Governor on May 17, 2009
• Line-item vetoes used for:
• OHE’s TEACH program appropriation of $250,000 per year for
nonprofit early childhood provider scholarships
• $1 million per year of funding for MnSCU’s Power of You
• MnSCU – Cook County Education Board’s $40,000
appropriation for educational programs and academic support
services
• Implementation delayed pending outcome of Governor’s
unallotment announcements
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Higher Education Bill &
Unallotment Process
• By law, Governor is allowed to unallot funds if projected
state revenues fall short of expenditures
• Some argue this authority was intended for unanticipated
shortfalls taking place during the biennium
• May be possible legal challenges to Governor’s use of
unallotment authority
• Governor cannot officially unallot funding until after July
1, 2009
• Governor announced unallotment plans on June 16, 2009
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Higher Education Bill &
Unallotment Process
• Governor’s planned unallotments:
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$300 million Reduction of local aids and credits
$67 million Reduction of refunds and other payments
$236 million Reduction in human services spending
$100 million Reduction in higher education appropriations
• $50 million cut for both MnSCU and U of M
• $33 million Reduction in most state agency operating
budgets
• $1.77 billion K-12 payment deferrals and adjustments
• $169 million Administrative actions
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Higher Education Bill &
Unallotment Process
• Announced unallotments did not affect state financial aid
programs
• Governor has authority to unallot additional funds during the
biennium if revenue projections fall below expenditures
• More likely to impact second year of biennium
• Legislature will reconvene in early 2010
• May pass legislation affecting program funding levels for 2010-2011
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General Changes
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Definition of Eligible
Institution
• Requirement that eligible schools be participating in the
Federal Pell Grant program by July 1, 2011, was delayed
until July 1, 2013
• OHE directed to work with small institutions to identify
cost-effective methods to achieve accreditation necessary
to be an eligible institution for state and federal financial
aid
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FAFSA Compliance
• All eligible institutions must implement policies and
procedures that ensure that applicants are aware they must
annually complete the FAFSA to be eligible for financial
aid
• By March 15, 2011, OHE must report to the higher
education committees of the legislature on the policies
and procedures adopted by institutions eligible for the
state grant program to increase student awareness of the
need to complete a FAFSA application with a preliminary
assessment of the effectiveness of the policies and
procedures.
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Criminal Record Notice
• Public and private institutions must give notice to each
person accepted for admissions and at the time the student
selects a major
• Notice must inform student that arrests, charges or
convictions for criminal offenses may limit employment
possibilities in specific careers and occupations
• Notice must also inform student that such offenses may
limit eligibility to obtain federal, state and other financial
aid and encourage student to investigate that possibility
• Notice must not discourage students from applying for financial
aid
• An institution is not liable for failing to provide the notice
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American Made Clothing
• To extent possible, bookstore located on campus must
offer for sale clothing or articles of apparel that are
manufactured in the Unites States
• The college or university must make a report to the
legislature on the results of efforts to comply with this
requirement
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Miscellaneous
Veterinary loan forgiveness program created
• For vets who treat food animals and work in rural areas
• Designed to serve up to 5 borrowers per year
• $225,000 available until expended
• OHE will contract with Dept of Health to run program
College Emergency Grants
• $150,000 each year to MnSCU two-year institutions for
emergency aid grants to students who are experiencing
extraordinary economic circumstances that may result in
dropping out of school without completing the term or
program
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Minnesota Promise
• Financial aid policy. It is the policy of the legislature to
provide sufficient financial aid funding so that tuition and
required fees to attend a public two-year college for a
student from a low-income family are covered by state
financial aid when combined with federal and other
sources of aid.
• Informational materials. The Office of Higher
Education must prepare and distribute materials under
section 136A.87 to promote the Minnesota Promise, the
availability of financial aid, and the benefits of higher
education.
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QUESTIONS??
MN State Grant Program
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Limit on Postsecondary
Education
• Limit on postsecondary attendance extended from 8 to 9
full-time semesters or the equivalent
• Will affect any student with term(s) funded out of the 2009-2010
aid year
• Units cutoff increased from:
• 93.6 to 105.6 units – Schools on semester system
• 94.4 to 106.4 units – Schools on quarter system
• Updated transcript review spreadsheet emailed to schools
and posted on OHE web site
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Limit on Postsecondary
Education
• Term during which student withdrew for major medical
illness does NOT count towards limit on postsecondary
attendance
• Student must have been under the care of a medical professional
during term of withdrawal
• Medical professional must provide statement that student was
unable to complete term due to major medical illness
• Instructions on revised State Grant student eligibility
questionnaire direct student to contact financial aid office
if s/he withdrew for major medical reasons
• Schools not required to ask all students if they ever withdrew
due to major medical illness
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Limit on Postsecondary
Education
• If student was paid a State Grant for a term during
which the student withdrew for a major medical illness,
school should inform OHE so that units can be flagged
on State Grant database
• Same applies to term(s) during which student withdrew for
active military service after December 31, 2002
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2009-2010 Award
Calculation Parameters
(changes from 2008-2009 shown in red)
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4-year program tuition cap:
$10,488
2-year program tuition cap:
$ 5,808
Living and miscellaneous:
$ 7,000*
Student share:
46%
Proration of parent contribution:
96%
Proration of EFC for independent:
• With dependents
• Without dependents
86%
68%
*prorated LME of $5,727 for clock hour schools with 900-hour academic year
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State Grant Maximum
Awards
Amounts shown equal 54 percent of full-time State Grant
award budget
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U of M/Four-Year Private:
Two-Year Private:
MnSCU Four-Year:
MnSCU Two-Year:
$9,444
$6,916
$7,325
$6,407
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Full Awards
• The higher education bill has language directing
OHE to make full grant awards in each year of the
biennium
• OHE to request deficiency appropriation if funding runs
short, rather than award reductions
• If funding shortfall during 2009-2010, can borrow
from 2010-2011
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Year Round Pell Grant
(Federal Law Unrelated to State Higher Education Bill)
• Effective 2009-2010, many students will be eligible
to receive up to two full-time annual Pell Grants
during the same aid year
• Based on draft regulations currently in the process of
negotiated rule making:
• Second annual Pell Grant available once student completes
24 semester or 36 quarter credits
• Schools will be required to fund a crossover term from the
aid year resulting in the highest Pell Grant award for the
student, as of the date of disbursement
• This means some schools will be forced to pay summer term as a
header for some students when they haven’t done this in the past
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Year-Round Pell Grant
• State Grant policy requires schools to fund State
Grant for a crossover term from the same aid year
selected for Federal Pell Grant
• This is because a student’s State Grant is based on the EFC
and Pell Grant for a given aid year
• OHE will respond to negotiated rulemaking with
potential problems associated with forcing schools to
choose the aid year yielding the highest Pell Grant
award
• NASFAA info on year-round Pell Grant
• http://www.nasfaa.org/publications/2009/ryearround05260
9.html
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Year Round Pell Grant
• Potential problems with coordination of Pell and
State Grant for crossover term:
• Choosing aid year yielding highest Pell Grant award may
result in less COMBINED Pell and State Grant
• Many schools not set up to handle summer as header term
of aid year
• Funding summer as header term may result in delayed
disbursements to students
• Neither Pell or State Grant funds are available until July
• Delayed disbursement may mean reduced State Grant award if
student’s enrollment level has changed prior to disbursement
• Pell available for 4 FT semesters; State Grant limited to 3
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Year-Round Pell Grant
• Example of dependent student attending MnSCU 4-yr
full-time for summer 2009
2008-2009
2009-2010
EFC
$
0
$3,000
Parent Contribution
$
0
$
Pell Grant
$4,731
$2,400
State Grant
$2,058
$4,925
Combined Pell &SG
$6,789/2 = $3,395 semester $7,325/2 = $3,663 semester
0
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Year Round Pell Grant
Fall
2008
Spring
2009
Sum
2009
Fall
2009
Spring
2010
Sum
2010
Fall
2010
Spring
2011
Sum
2011
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QUESTIONS??
Postsecondary Child
Care Grant Program
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Limit on Postsecondary
Education
• Limit on postsecondary attendance NOT extended to 9
semesters
• Stays at 8 full-time semesters or the equivalent
• This was oversight that OHE will try to address next
legislative session
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Allocations to Campuses
• Higher education bill increased annual program
appropriation from $6.2 million to $6.7 million
• Initial allocations calculated in April 2009 were based on
Governor’s budget request
• 5% cut to $6.2 million appropriation = $5.9 million
• Initial allocations recalculated in June 2009 based on $6.7
million appropriation, since unaffected by unallotment
• Will be recalculated in September 2009 based on prior
year utilization rate
• 2009-2010 application, maximum award chart,
calculation spreadsheet already distributed to schools
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Award Calculation
• 2009-2010 award calculation formula has not changed
• Still lesser of actual child care costs vs maximum award vs
financial need
• Effective 2009-2010, federal veterans benefits will be ignored as estimated
financial assistance when determining financial need
• Maximum award still $2,600
• Maximum award table updated for 2009-2010 based on 2009
federal poverty guidelines
• Has effect of expanding income levels at which students qualify
• 2009-2010 application, maximum award chart,
calculation spreadsheet already distributed to schools
• Also posted on OHE web site
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State Work Study
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Allocations to Campuses
• Higher education bill increased annual program
appropriation from $12.4 million to $14.9 million
• Initial allocations calculated in April 2009 were based on
Governor’s budget request
• 5% cut to $12.4 million appropriation = $11.8 million
• Initial allocations recalculated in June 2009 based on
$14.9 million appropriation, since unaffected by
unallotment
• Will be recalculated in September 2009 based on prior year
utilization rate
• Effective 2009-2010, federal veterans benefits will be ignored
as estimated financial assistance when determining financial
need (COA minus EFC, other financial aid & resources)
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SELF Loan
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SELF Loan
• Effective 2009-2010, federal veterans benefits will no
longer be considered a form of financial aid or resource
when determining eligibility for SELF loan
• Schools will be given discretion to include veterans benefits as
resource if they would like to limit a student’s debt load
• SELF program will send out newsletter to campuses
regarding changes
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Safety Officer Survivor’s
Grant
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SOS Grant
• Annual appropriation still $100,000
• Approximately 15 – 20 recipients per year
• Limit on postsecondary attendance decreased from 10 to
9 semesters
• Renewal language in statute still says award is granted for one
year and renewable for another 4 years
• OHE will use 9 semester limit for new applicants and 10
semester limit for recipients initially awarded prior to
2009-2010 year
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QUESTIONS??
Summer Transition
Program Grant
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Summer Transition
Program
• Effective summer 2010
• Public and private institutions encouraged to offer
research-based high school-to-college developmental
transition program and enroll students who will receive
grant
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Summer Transition
Program
• Program must, at a minimum:
• Include instruction to develop the skills and abilities necessary to
be ready for college-level work when the student enrolls in a
program leading to credential
• Must address the academic skills identified as needing
improvement by a college readiness assessment completed by
the student
• Not constitute more than the equivalent of one semester of fulltime study occurring the summer following high school
graduation
• Must be identified on a student’s transcript with unique identifier
to distinguish it from other developmental courses/programs
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Summer Transition
Program Grant
• $4.9 million per biennium from State Grant appropriation
• One-time grant to help pay expenses of summer transition
program
• For students who graduate from high school after
December 31, 2009
• Cannot receive both Summer Transition Grant and MN
State Grant for same term
• Can receive Summer Transition Grant and Pell Grant for same
term
• Does count towards limit on postsecondary education for
State Grant program
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Summer Transition
Program Grant
• Award calculation when EFC/PC > $0 is:
State Grant term award budget adjusted for enrollment level
- 46% student share
- Term adjusted parent contribution (dep) or EFC (independent)
• 9-month FM PC prorated to 96% then divided by 2 (sem) or 3 (qtr)
• 9-month FM EFC prorated to 86% indep with deps; 68% indep w/o deps
then divided by 2 (sem) or 3 (quarter)
- Pell Grant (only if student is actually receiving Pell Grant)
= Summer Transition Program Grant (minimum $50 sem; $33 qtr)
• This presents incentive for transition program to NOT be
eligible for Pell Grant
• Saves one term of Pell Grant eligibility for future use
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Summer Transition
Program Grant
• Award calculation when EFC/PC = $0 is:
State Grant term award budget adjusted for enrollment level
- $1,200 summer work expectation
-$
0 Pell Grant (even if student is receiving Pell Grant)
= Summer Transition Program Grant (minimum $50 sem; $33 qtr)
• Transition program students with zero EFC will always want
to opt for Summer Transition Grant rather than standard State
Grant
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Summer Transition
Program Grant
• For student with $0 EFC for 2009-2010, Summer
Transition Grant for summer 2010 would be:
MnSCU 2-Yr
MnSCU 4-YR
UofM/Private 4-Yr
15 credits
$4,642
$5,487
$7,544
12 credits
9 credits
6 credits
3 credits
$3,474
$2,305
$1,137
$
0
$4,150
$2,812
$1,475
$ 137
$5,795
$5,246
$2,299
$ 549
• Some students might also be eligible for Federal Pell Grant, if accepted into
credential program
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Summer Transition
Program Grant
• Enrollment level based on credits (or credit
equivalencies) of remedial course work
• OHE will need to determine whether and how other
program activities can be translated into credits
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Summer Transition
Program Grant
• School’s definition of summer term used for other state
financial aid programs will be used
• Most schools combine mini-sessions into one summer term
• If term crosses fiscal year (July 1), it is considered
crossover term
• Crossover terms can be funded from either aid year
• Must select same aid year for Summer Transition Grant and Pell
Grant, IF Pell Grant being subtracted
• State Grant application deadline for aid year selected
applies
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Summer Transition
Program Grant
• OHE will seek advice from campus financial aid
administrators re: program implementation and design
• Possible working group
• At issue:
• Should program be integrated into State Grant program, whereby
records for transition grant are included in State Grant batch with
special identifiers?
• Should program be designed like Work Study and Postsecondary
Child Care Grant, whereby funding advanced to campuses and
campus submits final report with student data and awards?
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Summer Transition
Program – Evaluation
• OHE must establish and convene a data working group to
develop:
• Data methodology used to evaluate program’s effectiveness at
improving academic performance, including identification of
comparison groups
• Timeline for institutions to submit data to OHE
• Must report annually
• Procedures to ensure consistency of data collected
• Data group must:
• Have members with expertise in data collection and delivery of
academic programs to students
• Represent the types of institutions offering transition programs
• Help OHE director analyze and synthesize data for annual
evaluation report submitted to legislature
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Summer Transition
Program – Evaluation
• At a minimum, evaluation data collected must include:
• Demographic information about participants
• Names of high schools from which students graduated
• College readiness test used to determine the student was not
ready for college-level academic work
• Academic content areas assessed and the scores received on the
readiness test
• Description of services, including any supplemental noncredit
academic support services provided to students
• Data on registration load, courses completed, and grades
received by students
• Retention of students from summer to fall term and subsequent
terms
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Summer Transition
Program – Evaluation
• Transition Program participants will need to be tracked
even if they transfer to another college
• OHE can use ISIR/State Grant database to determine if student
enrolled for fall and subsequent terms
• Potentially, OHE can contact these campuses for data on
subsequent enrollment (e.g., GPA, etc.)
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QUESTIONS??
MN Indian Scholarship
• Increase in appropriation by $125,000 in each year
• Approximately 30 additional full year awards
• As of July 1, 2010:
• Over 1300 applications received
• Over 600 students who meet basic eligibility requirements with
complete applications to be reviewed
• School budgets can and should still be completed
• Enormous thanks to institutions that heeded the call for budgets
to be completed as soon as possible if students had completed
the financial aid process at their institution
• Our intent was be able to provide scholarships to students who
had completed the process regardless of their institution
• Students not awarded with complete applications will be placed
on a waiting list
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MN GI Bill
2009-2010 Award Year
• No changes in program for 2009-2010 aid year
• Appropriation to program was changed from a base
amount to a open appropriation
• Initial appropriation made based on forecasted usage but MN
Dept of Veterans Affairs can request additional if needed
• Effect of Post 9/11 GI Bill (Chapter 33) is unknown
• Not all students will benefit from utilizing Chapter 33 benefits
instead of Chapters 1606, 1607 or 30
• Not all students will qualify at 100% of benefit and may still
have need
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MN GI Bill
Important Info for Vets
• Higher Education Technical Amendments Bill signed by
President Obama on July 1st, 2009
• Veteran’s education benefits no longer considered Estimated
Financial Assistance now effective July 1, 2009
• For more info on other changes visit NASFAA.org or IFAP
• Does everyone know about MyMilitaryEducation.org?
• One-stop resource for veterans and their families
• Sponsored by the MN Department of Veterans Affairs – Higher
Education Veterans Programs and MNSCU – MN Online
• Provides FAQ powered by RightNow
• Includes info on all aspects of higher education
• Online Chat, Email and Telephone assistance
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QUESTIONS??
Achieve Scholarship
• Major changes made to program and student eligibility
for students who graduate from high school on or after
January 1, 2009
• Original program and student eligibility requirements in
place for students who graduated between January 1,
2008 and December 31, 2008
• $4.35 million available in each year for scholarships
• Fact Sheet available at www.ohe.state.mn.us/FAForms
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Achieve Scholarship
All Students
• To be eligible, all students must:
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Be a U.S. citizen or eligible non-citizen
Be a Minnesota Resident for state financial aid purposes
Complete a FAFSA for the financial aid year
Graduate from a Minnesota High School
Enroll at an eligible Minnesota institution
Apply for the scholarship no later than 30 days after the term
starts in order to receive funds in that term
• Complete one of the four sets of rigorous programs of study
while in high school or in a home-school setting
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Achieve Scholarship
2008 High School Grads
• To be eligible, students who graduated between
January 1, 2008 and December 31, 2008 must :
• Have a family adjusted gross income of less than $75,000
reported on the FAFSA for the academic year during which
the scholarship is used
• Be enrolled for at least 3 credits in an eligible institution
• Take and receive at least a grade of C in each of the
courses, unless otherwise stated, in one of four rigorous
programs of study
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Achieve Scholarship
2008 High School Grads
• Award Process
• Eligible student receives an Eligibility Letter
• Notifies student of eligibility and asks student to acknowledge award by
going online and entering what school and in what term they would like to
receive their first payment
• Eligible students awarded $1,200 to be disbursed in two equal
payments of $600 at the requested institution
• The first payment made within the first term of enrollment
• The second payment made in the second term of enrollment provided
student successfully completes the first term
• Enrollment and Successful completion of the first term
information is provided by the institution online
• For more information on the online process download the Online Tools
Guide at www.ohe.state.mn.us/FAForms
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Achieve Scholarship
2009 High School Grads
• To be eligible, a student who graduates on or after
January 1, 2009 must:
• Be eligible to receive either a Federal Pell Grant or Minnesota
State Grant
• Complete all of the required courses in one of four rigorous
programs of study and graduate with an unweighted grade point
average of 2.5 or higher
• Enroll full time (15 Credits) in an eligible institution within the
first academic year immediately following high school
graduation
• Example: 2009 High school graduates only eligible in the 2009-2010 aid
year
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Achieve Scholarship
2009 High School Grads
• Foreign Language Waiver
• The foreign language requirement in both the State Scholars
Initiative and the MN Coursework rigorous programs can be
waive if a student’s first language is not English and they have
attained English language proficiency
• Can be indicated on application or contact us to request a waiver
• Denial letter will include this information for students who may
have not indicated this on their applications
• Online Course Bonus
• Eligible students who completed at least one online course while
in high school are eligible to receive an additional award of $150
• Can be indicated on application, have it listed on their high
school transcript or contact us
• Award Letter will include this information for students who may
have not indicated this on their applications
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Achieve Scholarship
2009 High School Grads
• Award Process
• Eligible students will receive an award letter that includes award
amount and postsecondary institution listed on application
• Some applications submitted under old guidelines did not have
institutions listed
• Matched first institution on FAFSA to old applications
• Award letter will provide instructions to update the institution
and online course completion status online
• Students will only be able to do this once and will have to contact us if
they need to make additional updates
• Institutions notified when Award Rosters are available online
• Institutions required to mark if students are enrolled for at least
15 credits
• Institutions notified when payments are made and Payment
Rosters available
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QUESTIONS??