Academic Competitiveness Grant (ACG)

The Academic Competitiveness Grant (ACG)

The Higher Education Reconciliation Act of 2005 (HERA) created two new grant programs for full-time students who are at degree-granting institutions, are U.S. citizens, and are eligible for the Federal Pell Grant.

The ACG is one of the two new grant programs and is available for the first time for the 2006-07 school year for first-year students who graduated from high school after January 1, 2006, and for second-year students who graduated from high school after January 1, 2005. This grant is in addition to the student's Federal Pell Grant.

What are the Eligibility Requirements?

To receive the ACG each academic year, a student must:

ť	Be a U.S. citizen
ť	Be a Federal Pell Grant recipient
ť	Be enrolled full-time in a degree program
ť	Be enrolled in the first or second academic year of his or her program of study at a two-year or four-year degree-granting institution
ť	Have completed a rigorous secondary school program of study (after January 1, 2006, if a first-year student, and after January 1, 2005, if a second-year student). Click here for a detailed listing of states' rigorous secondary school programs.
ť	If a first-year student, not have been previously enrolled in an undergraduate program
ť	If a second-year student, have at least a cumulative 3.0 grade point average (GPA) on a 4.0 scale (as set forth in regulations to be promulgated soon) for the first academic year

Can an eligible non-citizen receive this grant?

No, only U.S. citizens are eligible to receive this grant.

How Much Can a Student Receive?

The ACG will provide up to $750 for the first year of undergraduate study and up to $1,300 for the second year of undergraduate study to full-time students who are eligible for a Federal Pell Grant and who have successfully completed a rigorous high school program, as determined by the state or local education agency and recognized by the Secretary of Education. Second-year students must maintain a cumulative grade point average of at least 3.0.

The amount of the student's ACG, in combination with the student's Federal Pell Grant, other resources, and estimated financial assistance, may not exceed the student's financial need (cost of attendance minus the Expected Family Contribution [EFC] equals financial need). A student may not receive more than one ACG award in each academic year for which the student is eligible.

All annual award amounts for an academic year may be ratably reduced if sufficient funds are not available to all eligible students nationally in an award year.

How Does a Student Apply for the ACG?

A student applies for the ACG by completing and submitting the Free Application for Federal Student Aid (FAFSA).

The notification provides information to help a student determine whether he or she completed "a qualifying rigorous secondary school program" identified by a state or local educational agency and recognized by the U.S. Secretary of Education. Click here for a detailed listing of recognized programs.

The notification directs the student to self-certify his or her eligibility at www.fafsa.ed.gov by completing Step 3, "Make Corrections to a Processed FAFSA," answering additional questions to determine whether he or she meets the rigorous secondary course work requirements. If the student does not have access to the Internet, he or she may call 1-800-4-FED-AID (1-800-433-3243; TTY for the hearing-impaired 1-800-730-8913).

The Department will notify each eligible student's postsecondary institution(s) listed on the FAFSA that the student may qualify for the ACG. The school will determine whether the student meets all of the eligibility criteria. The financial aid office will award the grant to eligible students.

For students who complete the FAFSA after July 1, 2006, the FAFSA process will determine whether the student meets the rigorous secondary course work requirements.

For detailed information about the implementation of this grant, visit www.ifap.ed.gov/dpcletters/GEN0608.html