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TEACH by pengxuebo


									      It’s a Grant,
       It’s a Loan,
It’s a TEACH Groan
            We will discuss:
• TEACH Grant fundamentals
  – Description
  – Institutional eligibility
  – Academic program eligibility
  – Student eligibility
  – Counseling requirements
  – Satisfaction of service agreement
• The reality of repayment
• TEACH: The Teacher Education
  Assistance for College and Higher
  Education Grant Program
• A product of the College Cost Reduction
  and Access Act of September 27, 2007
• Implementation effective July 1, 2008
         Description (cont.)
• For a high-level, two page overview of the
  TEACH Grant program, visit
          Description (cont.)
• For an in-depth discussion of TEACH,
  study the NPRM in the 03/21/2008 Federal
  Register available at:

  or go to and click on ‘Federal
    Registers’ under Laws and Regulations
           Description (cont.)
• The TEACH Grant:
  – Provides up to $4,000 per academic year to a
    student intending to teach full-time in a high-need
    subject area in a low income, non-profit elementary or
    secondary school for four years within the eight years
    following completion of program of study.

  – Becomes a Direct unsubsidized Loan with interest
    accruing from date of disbursement if teaching
    requirements are not fulfilled. 34 CFR 686.43
         Description (cont.)
• The maximum award year amount of the
  TEACH Grant is a function of enrollment
  – Full time             $4,000
  – Three-quarter time    $3,000
  – Half time             $2,000
  – Less than half time   $1,000
  Minimum award is $25.   34 CFR 686.21
         Description (cont.)
• A student’s cumulative limits for TEACH
  Grants are as follows:
  – Undergraduate plus post-baccalaureate
    studies: $16,000
  – Graduate studies at the Master’s Degree
    level: $8,000
                           34 CFR 686.21
        Institutional Eligibility
• An otherwise eligible Title IV institution
  may qualify to participate in TEACH if it is
  financially responsible and falls within one
  of the following four categories:
  – 1) Offers a high-quality teacher preparation
    program at either the baccalaureate level or
    masters level
  – 2) Offers a teacher certification program at
    the post-baccalaureate level
Institutional Eligibility (cont.)
– 3) Offers a baccalaureate degree in a high-
  need field and has an agreement with an
  institution in category 1) or 2) to provide
  courses necessary for its students to begin a
  career in teaching
– 4) Offers a two-year program that is
  • fully acceptable towards a teacher preparation
    baccalaureate described in 1) or
  • a high-need field at a school described in 3).
                             34 CFR 686.2
   Institutional Eligibility (cont.)
• School participation in the TEACH Grant
  program is optional
• Participation may begin July 1, 2008, or at
  a later date
• School’s Program Participation Agreement
  will need to be updated at after Dear Colleague
    Letter is issued giving directions
  Academic Program Eligibility
• Unlike other Title IV programs, not all
  degree programs are TEACH eligible

• The TEACH eligible institution must
  determine which of its academic programs
  qualify a student for the TEACH Grant
Academic Program Eligibility (cont.)
• “An eligible program…prepares an
  – To teach in a high-need field and
  – Leads to a baccalaureate or master’s degree,
  – Is a post-baccalaureate program of study.”
                           34 CFR 686.2
Academic Program Eligibility (cont.)
• “A two-year program of study that is
  acceptable for full credit toward a
  baccalaureate degree is considered to be
  a program of study that leads to a
  baccalaureate degree”.
                        34 CFR 686.2
Academic Program Eligibility (cont.)
• High-need fields are defined in one of two
  ways, by inclusion in
  – A list of the six high-need fields in the Federal
    Register, 34 CFR 686.2, or
  – A year- and state-specific list in the annual
    Teacher Shortage Area Nationwide Listing at
Academic Program Eligibility (cont.)
• The six high-need fields listed in the
  Federal Register are:
  – Bilingual education and English language
  – Foreign language
  – Mathematics
  – Reading specialist
  – Science
  – Special education
Academic Program Eligibility (cont.)
• In addition, the high-need fields specific to
  Ohio in 2007-2008 include the following:
  – Art-Visual and Performing
  – Economics
  – English/Language Arts
  – Exceptional Children/with disabilities
  – Geography
  – Government
  – History
           Student Eligibility
• Must complete FAFSA
  – The TEACH Grant is not need based,
    however, the Grant together with other
    estimated financial assistance may not
    exceed the student’s Cost of Attendance
  – EFC is required, however, verification is not
    required even if student is selected by the
    central processor
     Student Eligibility (cont.)
• Student must be a U. S. citizen or an
  eligible non-citizen and meet the
  requirements of 34 CFR 668, Subpart C
• Student must be enrolled in an institution
  that has chosen to participate in TEACH:
  – An undergraduate institution
  – An institution offering post-baccalaureate
    teacher certification, or
  – An institution offering a Master’s Degree
     Student Eligibility (cont.)
• Student must be:
  – Enrolled in coursework that is necessary to
    begin a career in teaching, or
  – Planning to complete such coursework.
     Note: Such coursework may include subject area courses
   such as math courses for a student who intends to be a math
  – Enrolled in an academic program designated
    as TEACH Grant eligible
     Student Eligibility (cont.)
• Student must meet certain academic
  – Generally, a current cumulative 3.25 GPA on
    a 4.0 scale verified before each disbursement,
  – A score above the 75th percentile on one of
    the batteries of a nationally-normed
    standardized admissions test
                                 34 CFR 686.11
     Student Eligibility (cont.)
• Exceptions to academic standards:
  – Students in their first term of post-secondary
    studies need a final cumulative high school
    GPA of 3.25 or meet the 75th percentile test
  – Transfer students in their first term at new
    institution need a GPA of 3.25 on all transfer
    credits or meet the 75th percentile test
  – Current or former teachers or retirees
    receiving a TEACH Grant for a master’s
    degree have no similar academic standards
     Student Eligibility (cont.)
• Finally, the student must sign a TEACH
  Grant Agreement to Serve (ATS)
• The electronic ATS:
  – Is required to be completed each award year
    in which a TEACH grant is received
  – Discusses the obligation of teaching service
  – Includes circumstances by which the Grant is
    converted to an unsubsidized loan
  – Includes the terms of the loan
    Counseling Requirements
• Institution must provide three types of
  counseling to TEACH Grant recipients:
  – Initial Counseling
  – Subsequent Counseling
  – Exit Counseling

     • NOTE: The institution must maintain
       documentation supporting compliance with
       counseling requirements
 Counseling Requirements (cont.)
• Initial counseling must be conducted:
  – Prior to the first disbursement of the TEACH
  – In person, by audio-visual means, or by
    interactive electronic means
• At a minimum, 11 items must be
  presented during the counseling. Refer to
  34 CFR 686.32 (a) for the list.
 Counseling Requirements (cont.)
• Subsequent counseling must be
  – Prior to the first disbursement of each
    subsequent TEACH Grant award,
  – In person, by audio-visual means, or by
    interactive electronic means
• At a minimum, 5 items must be presented
  during the counseling. Refer to 34 CFR
  686.32 (b) for the list.
 Counseling Requirements (cont.)
• Exit counseling must be conducted:
  – Before enrollment ceases or within 30 days of
    determination of unofficial withdrawal,
  – In person, by audio-visual means, by
    interactive electronic means, or by mailing
    written counseling materials
• At a minimum, 15 items must be
  presented during the counseling. Refer to
  34 CFR 686.32 (c) for the list.
 Counseling Requirements (cont.)
• Some of the items addressed during
  counseling include:
  – How to identify low-income schools and
    documented high-need fields
  – How to request a suspension of the eight-year
  – The warning that ‘Once a loan, always a loan’
  – Availability of FSA Ombudsman
Satisfaction of Agreement to Serve
• In order to satisfy the terms of the ATS,
  the teacher must serve full-time:
  – In a low-income school
  – As a highly-qualified teacher,
  – In a high-need field
  – For four years during the eight years following
    completion of course of study, and
  – Will submit annual documentation.
    Satisfaction of ATS (cont.)
• Service as a full-time teacher

  – A full-time teacher is one who meets the
    standard used by a State in defining full-time
    employment as a teacher.
                             34 CFR 686.2
    Satisfaction of ATS (cont.)
• The teacher must teach for four years in a
  low-income school.
  – However, if the low-income school is no
    longer considered low-income after the
    teacher’s first year of teaching, then
    subsequent years of teaching at that school
    will satisfy that provision of the ATS.
  – For listing of low-income schools, click on the
    SEARCH button at
    Satisfaction of ATS (cont.)
• The teacher must teach for four years in a
  high-need subject area.
  – However, if the high-need subject is no longer
    considered high-need after the teacher’s first
    year of teaching, then subsequent years of
    teaching in that subject area will satisfy that
    provision of the ATS.
  – Teaching a majority of subjects in a high-need
    field qualifies as teaching in a high-need
    subject area.
    Satisfaction of ATS (cont.)
• Teach four complete school years within
  the eight years
  – Excludes summer teaching
  – Two complete and consecutive half years of
    teaching from different schools equals a year
  – A year is defined as nine consecutive months
    for year-round schools
    Satisfaction of ATS (cont.)
• Periods of suspension of the eight year
  rule are available:
  – Enrollment in school for state certification or
    licensure or for TEACH eligible program of
  – Some limited conditions covered under the
    Family Medical Leave Act 34 CFR 686.41
  – These suspensions are for one-year
    increments not to exceed total of three years
    Satisfaction of ATS (cont.)
• A call or order to active duty status for
  more than 30 days qualifies for a
  suspension of the eight-year rule.

• This period of suspension ends upon
  completion of the military service
    Satisfaction of ATS (cont.)
• Timely documentation of the following
  circumstances must be submitted or the
  Grant becomes a Direct unsubsidized
  loan: 34 CFR 686.40
  – Completion of program of study
  – Withdrawal from program of study
  – Employment as a full-time teacher
  – Intention to be employed as full-time teacher
  – Request for period of suspension
    The Reality of Repayment
• Assume a student received a $4,000
  TEACH Grant for four consecutive years
• X years after receiving first disbursement,
  the $16,000 Grant converts to a loan
• The chart shows the following information:
  – The accrued interest from disbursement of
    Grant because of conversion to a loan
  – Monthly payment under 10 year repayment
  – Total amount paid at end of payment period
  The Reality of Repayment (cont.)
Years after    Accrued Monthly Total
First disb.    Interest Payment Repaid
   4           $ 2,448 $212     $25,476
   6           $ 4,624 $237     $28,481
   9           $ 7,888 $275     $32,989
  12           $11,152 $312     $37,496
$16,000 TEACH Grant converted to a 6.8% loan repaid
  over a 10 year period with accrued interest
              In Conclusion
• If your school plans to participate in the
  TEACH Grant program, be proactive by
  fully disclosing to students:
  – Eligibility requirements to receive the Grant
  – The benefits of the Grant
  – All conditions that must be met to fulfill the
    obligations accompanying the Grant, and
  – The reality of repayment
The information contained in this
 presentation is based on the March 21,
 2008, Federal Register, the Notice of
 Proposed Rule Making.
This information is subject to change when
 the Final Regulations are published later
 this year.
Any Questions or Comments?

         Ed Schroeder

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