College Opportunity Fund (COF) Overview

1. College Opportunity Fund (COF) Overview Pat Burns, CSU CHECO Meeting September 29, 2004

2. Purpose and General Details • As stated in the Act: • Increase access to higher education through direct provision to students of a stipend • Not a “voucher!” • Greater accountability of higher ed institutions through • Performance contracts for fee for service activities COF Summary at CHECO

3. General Details • Advertisement of the COF program is to begin in 8th grade • To be implemented for Fall 2005 semester • Many areas and issues still not well defined COF Summary at CHECO

4. Elements of the COF • Stipends • Flat per credit hour • $80/credit hour proposed for FY 06 • Independent of institutional mission • Now, 2 “streams” for tuition • “Total in-state tuition” • Stream #1 - “Student’s share of in-state tuition,” capped • Stream #2 - “Stipend,” not capped – receipt must show this and attribute it to the COF program • If the “stipend” is reduced in any fiscal year, institutions are prohibited from increasing the “student’s share” to make up the difference COF Summary at CHECO

5. Performance Contracts • Fee for service • All services other than eligible courses • Performance contracts • For fee for service areas • Significant legal issues exist • Required to become an enterprise, in addition to < 10% of total funding from the state • Must allocate 20% of increases in tuition above inflation for need-based assistance • CCHE is planning to issue this fall an RFP for performance contracts for private institutions COF Summary at CHECO

6. College Access Network (CAN) • Administer the program • Implement the trust fund • Institutions that do not use CAN for student loans will be charged • A one-time implementation fee • On-going fees • Set by CAN, not to exceed actual costs COF Summary at CHECO

7. Who’s Involved • Rick O’Donnell, CCHE – consulting with the CEO’s • Performance contracts • SURDS, even for private institutions • COF Technical Advisory Committee (TAC) • Conduit for information flow only • Items referred to CAO’s, CFO’s, CIO’s and DAG, and brought back to COF TAC for discussion • Then forwarded to O’Donnell and CEO’s • CAN, Jeanne Adkins • Administer the program and the COF trust fund COF Summary at CHECO

8. COF TAC • Formed by CCHE to advise on policy and issue resolution for all areas of SB04-189. • Four institutional reps. • Routes issues to various groups for recommendations; little or no communication from the group; no formal notes. • TAC isn’t a decision-making body per se but still makes decisions related to issue identification and resolution by other groups. • Meets weekly via phone conference. COF Summary at CHECO

9. Jenna Allen, CCHE - COO Jeanne Adkins, CAN Pat Burns, CSU – CIO Rep. Bill Kuepper, CCHE - CAO’s Rich Schweigert, CCHE - CFO’s Fran Schoneck, UNC, CFO Rep. Dr. John Sowell, WSC, CAO Rep. Kimberley Thompson, CCD, DAG Rep. COF TAC Members COF Summary at CHECO

10. Stipends • Public institutions • Private institutions: CC, DU and Regis @ 50% • Constant per credit hour for eligible courses • A student must • Apply to the COF program • Each semester, authorize the use of the stipend (all or nothing at each institution) • 145 credit limit, except 30 credits will be added (175) if 145 used and a Batchelor’s degree has been obtained • Waivers – more on this later COF Summary at CHECO

11. Legislature, funding of Stipends Fee for service Scholarships CCHE Recommend funding to the Legislature Performance contracts College Access Network (CAN) Receive and disburse funding for stipends Accounting of credits and $ Students Apply to the COF Authorize the use of the COF stipend each semester, at each institution Institutions Directed to require eligible students to apply Verify student eligibility Identify COF-eligible courses Implement in an auditable fashion – more later The Players and Their Parts COF Summary at CHECO

12. Application to the COF Program • Students will apply to CAN with • Name • DOB • SSN (login name on the CAN web site!!!) • Email address (for password) • CAN will keep track of eligible credits • Issue: how will the database be initially “seeded” for current students? Probably from SURDS. COF Summary at CHECO

13. The CAN Database • Student identity • Name, DOB, SSN, email address • Time history • Eligible credits available • Eligible credits used • $$$ disbursed and to which institutions • Waivers • Individually web accessible • By students, to apply and view their stipend balance • By institutional staff, for support COF Summary at CHECO

14. CAN Processing • Batch transactions • Query files – frequently, as needed • Invoice file – once per term • Disbursement file – once per term • Reconciliation file – once per term COF Summary at CHECO

15. Eligible Students • Colorado residents • Pell-grant eligible, if from a private institution • At ½ the stipend rate COF Summary at CHECO

16. Eligible Courses • Resident instruction courses • Not eligible • Graduate courses • Basic skills courses • AP, IAB, courses • Courses taken pursuant to the “postsecondary enrollment options act” • High-school fast-track courses • Census • “Snapshot” taken at census to determine eligible courses • Thereafter • Ratcheting up only • No refunds of COF credits or COF $$$ COF Summary at CHECO

17. CAN Web Site • A web link to which we hand students off • A web transaction proposed but rebuffed • Button “Apply to the COF Program” • We mimic the COF application page at CAN • We fill out the 4 data elements and transfer to CAN • CAN performs the data check and returns a code • We notify the student of the result • CAN is opposed to this, during this first year COF Summary at CHECO

18. Waivers • CCHE waivers for: • Extenuating circumstances of health or physical ability • Approved program requires more than 120 credit hours • Degree requirements change during the student’s tenure • “Substantial economic hardship” on student and family • Institutional waivers • 5% of students • Priority is job retraining • Legislation indicates a 1-year term • Current thinking is by term • Process still under much discussion, especially the ordering • About 7-8% of current students in SURDS exceed 145 credits COF Summary at CHECO

19. Funding • CCHE desires to fund stipends fully, at the expense (literally) of other programs • Fee for service? • Merit-based scholarships? • Maybe even need-based scholarships? • Also, projected > $240 million deficit in the state’s budget for FY 06 • Higher ed budget is the only significant one left with this level of flexibility • Tobacco securitization still being explored COF Summary at CHECO

20. Advertising • CCHS\E has hired a marketing person to develop some advertising materials for this activity • So we are portraying the situation uniformly • Have seen nothing from them yet, except a mandate to use the terms defined in the legislation COF Summary at CHECO

21. Implementation • As financial aid • How is still being debated • An award, or • A resource COF Summary at CHECO

22. Modifications to our Systems • Tuition policy • SIS, including • Student data • Financial aid • Accounts receivable • Waiver process COF Summary at CHECO

23. SIS Issues • 2 streams of tuition • Eligible students • Application to COF – status • Eligible course sections (RI vs. non-RI) • COF stipend usage history, by term • Affirmative authorization • Courses and $$$ • Remaining eligibility • Batch transaction files COF Summary at CHECO

24. Significant Issues • Cash flow – disbursements in September (August the 1st year) • Exceeding 145 credits at multiple institutions • Which institutions get paid which amounts? • Funding • If stipends funded fully, may reduce funding of other areas • No process defined in the case of the trust fund being exhausted, probably not FIFO • Performance contracts • Lots of legal issues being explored • Much work left to do in very little time COF Summary at CHECO

25. Questions • Are most welcome. COF Summary at CHECO