Higher Education Reconciliation Act of 2005

Parents and students, time to start working on the FAFSA (Free Application For Federal Student Aid) worksheet. http://www.fafsa.ed.gov/

Higher Education Reconciliation Act of 2005

"Changes that may affect your student aid are listed below. These changes are the result of a new federal law that goes into effect on July 1, 2006; read further to see if any changes may affect your student aid.

New student aid grant program
The law also created a new student aid grant program called the Academic Competitiveness Grant (ACG). Congress has provided funding and the grants are available for the 2006-2007 award year. First-year undergraduate students will be eligible to receive up to $750. Second-year undergraduate students will be eligible to receive up to $1,300.

To be eligible for an ACG each academic year, a student must:

• Be a U.S. citizen
• Be Federal Pell Grant eligible
• Be enrolled full-time in a degree program
• 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
• Have completed a rigorous high school program of study (after January 1, 2006, if a first-year student, and after January 1, 2005, if a second year student)
• If a first-year student, not have been previously enrolled in an undergraduate program; and
• If a second-year student, have at least a cumulative 3.0 grade point average on a 4.0 scale for the first academic year.

If you have not filed a FAFSA or Renewal FAFSA, at the time that you complete your application, FAFSA on the Web will predetermine if you are eligible to answer the ACG questions".