federal pell grant program

Federal Pell Grant Program

NYSFAAA Conference 2013

Angela Van DekkerFordham University

October 2013 NYSFAAA Conference 2013 2

Introduction

Authorized in 1972 as part of the Higher Education Act of 1965.

Originally called Basic Educational Opportunity Grant (BEOG). Name change to Pell Grant in

honor of Senator Claiborne Pell in 1980. Quasi-entitlement program

Eligible student is entitled to the funds whether or not funds remain in the budget

Shortfall in budget could result in prorated awards


Introduction cont’d

Awards are based on EFC (Expected Family Contribution) and COA (Cost of Attendance).

A valid FAFSA (Free Application for Federal Student Aid) is required.

The EFC is calculated by the Federal Methodology (FM) needs analysis formula (determined by Congress).

Unlike other federal programs, awards are prorated for quarter-time, half-time, and less than half-time enrollment.


Student EligibilityStudent must: Meet the eligible student definition for all

Title IV programs. Be enrolled in a program that will lead to a

certificate, diploma, or degree at an eligible institution.

Be an undergraduate student pursuing a first Bachelor’s degree.

Have a valid and eligible EFC (FAFSA) and remaining lifetime eligibility

Have remaining Pell Grant lifetime eligibility


Five Formulas

Depends on structure, length of student’s program and use of standard (semester, trimester, or quarter) or non-standard terms

1. Standard term, credit hour program

2. Standard term, credit hour program < 30 weeks

3. Any other term based, credit hour program

4. Clock hour program, or credit hour program without terms

5. Correspondence program of study


Five Steps per Formula

For students with a Pell eligible EFC:

1. Determine enrollment status

2. Calculate the Federal Pell Grant COA

3. Determine the “Scheduled Award” amount

4. Determine the payment period

5. Calculate the payment for a payment period


1. Determine Enrollment Status

Must be determined for each payment period (term)

Full-time, Quarter-time, half-time, or less than half-time (Undergraduate semester: full time =12 credits; three quarter 9-11 credits; half time 6-8 credits)

Determines components of COA based on credit/clock hours

Determines which payment schedule to use to calculate scheduled or annual award


2. Calculating COA

Pell Grant COA is based on costs of a full-time student for a full academic year – even if the student is enrolled for less!

For institutions with standard terms, an academic year equals two semesters, three trimesters, or four quarters.

Less than half-time students: miscellaneous and personal expenses are excluded

Correspondence study: generally, only include tuition and fees

Telecommunications study: cost of rental or purchase of equipment not included


2. Calculating COA, continued

Formula 4: Clock hour or credit hours, non-term

If Period of Enrollment (POE) is < or > statutory definition of an AY, student’s cost must be prorated in order to obtain COA for full AY

2 calculations1. Credit/clock hours in AY divided by credit/clock

hours to which costs apply2. Week of instructional time in AY divided by weeks

of instructional time in POE *Entire cost is multiplied by the lesser of the

two fractions. See example that follows.

Calculating COA, Clock hour or credit hours, non-term continued


*Taken from 2013-14 Federal Student Aid Handbook Vol. 3 Chap 2 (3-38)


3. Determining the “Scheduled Award”

“Scheduled Award” is the amount of Federal Pell Grant a full-time student may receive for a full academic year. The student will actually receive less if

enrolled less than full time, i.e. three/quarter- time, half-time, or less than half-time…

Pell Grant Payment Schedules are issued annually by the U.S. Department of Education Lists EFC (or Pell Grant Index) across top

and COA down the side


4. Determining the Payment Period

The program’s academic year is divided into payment periods Determines when Federal Pell Grants are disbursed

and exact amount to disburse For standard term, credit hour programs –

payment period is term Each semester, trimester or quarter

For non-standard programs, school must define, in writing, the payment period in clock or credit hours Must be at least two equal payment periods for

programs shorter than a year, or within each year if greater than one year


5. Calculate the Payment

Typically – the total disbursements for all payment periods in an academic year equal the “Scheduled Award”, unless: Enrollment is less than full-time Student does not attend all terms

Standard terms - annual “Scheduled Award” is divided by the number of payment periods

Non-standard programs/terms – only the full-time Payment Schedule is used. Apply two calculations to determine amount


5. Calculate the Payment, continued

Formula 1: Standard term, credit hour program

Scheduled Award = $5,645

Payment period amount for standard semester term = $2,822.50($5,645/2)

(or $2823/2822 = $5,645)

Payment period amount for standard trimester term = $1,881.67($5,645/3)

(or 1882/1882/1881 =$5,645)


5. Calculate the Payment, continuedFormula 4: Clock hour or credit hour non-term

1. Scheduled award x lesser of: Fraction based on weeks of instructional

time Fraction based on credit/clock hoursWhen using fractions, be careful to multiply first, and then divide to

avoid an incorrect result.

For example*, the correct way to prorate a $2,150 Scheduled Award for a payment period that is a nonstandard term of 10 weeks of instructional time, for a program that has 30 weeks of instructional time.

Round up end result if decimal is .50 or higher, down if less then .50

*Taken from Federal Student Aid Handbook 2013-14 Volume 3 Chapter 3-42


Pell Grant Payment Must have a valid ISIR processed by

CPS while the student was enrolled and eligible. Deadline is extended for students completing

verification Special circumstances/situationsConsortium agreements: between two schools to allow

students to attend one school while matriculated at another and receive federal aid

Visiting/exchange student: only the institution where they are enrolled in an eligible program may disburse Pell

Dependency override/Professional Judgment criteria are

the same as for other Title IV programs. Verification must be completed and corrections

processed by CPS before applying PJ adjustments

Remember

Cost of Attendance for Pell is always based on full-time enrollment costs unlike Campus-Based programs where COA is based on actual enrollment.

Scheduled Award is maximum amount the student can receive in an award year – July 1 to June 30

Annual Award is the maximum award a student can receive based on actual enrollment status.

Refer to the current Federal Student Aid Handbook



Let’s Do It!!

COA of $15,682 Student’s EFC is

$1,234 Student is 15 credits

fall, 7 credits spring

What is scheduled award?

What is fall award? What is spring award? What is the annual

award?

School is semester, standard term

$4,395

$2,198

$1,099

$3,297


Let’s Do It!!

Student is 15 credits fall,

9 credits spring, 6 credits summer. Student’s EFC is $2,560

What is scheduled award?

What is fall award? What is spring award? What is summer award? What is the annual

award?

School is semester, standard term

COA is $39,100

$1,548

$1,160

$387

$3,095

$3,095

Federal Pell Grant - Lifetime Eligibility Used (LEU) Effective July 1, 2012 for all Pell recipients Aggregate limit equal to six years of Pell

Grant funding (Includes all Pell Grant/Basic Grant disbursements back to the 1973-1974 award year)

May receive up to 600% of maximum Pell grant funding, i.e., 100% for six years, or Prorated percent for each year if receiving less

than full annual scheduled award Counts all prior Pell Payments in 600%


Federal Pell Grant - LEU

COD is THE system of record for Pell Grants How do students know their LEU For the 2013-2014 award year, students can determine

their Pell LEU by: Additional comments will be added to the SAR consistent

with the student’s Pell history at the time of the SAR (pre-screening) & from NSLDS post-screening if the LEU changes (do not refer to MyStudentData Download for LEU) SAR comments will refer to the equivalent of “school

year” SAR Codes 345-357 contain new or revised comments

(345-7 most important 346 & 347 C flags) See SAR Comment Codes and Text Guide most current-

July 2013 October 2013 NYSFAAA Conference 2013 21


COD Transcript can be provided to the student by the institution

Download Excel spreadsheet for student



May receive up to 600% of maximum Pell Grant

Calculating eligibility… LEU of 500% or Less: is eligible to receive up to

100%of the full “Scheduled Award” for the award year, since the student has at least 100% remaining. 600% or More: May not receive additional Pell

Grant funds. >500% and <600%: is not eligible to receive a

full “Scheduled Award”, but may receive a partial Pell Grant of the difference between 600% and the student’s LEU


Federal Pell Grant – LEUCalculating reduced awards Scenario 1: Student is full-time in a semester

program and has 0 EFC and a $5,645 “Scheduled Award”

Action: Calculate student’s Pell eligibility by subtracting the Pell LEU listed on the Pell LEU Report from 600.000%

Report says 534.255% 600.000% - 534.255% = 65.745% 65.745% x $5,645 = $3,711.30525 ($3,711.30) First semester award = $2,822.50 Second semester award = $888.80 or $888.00

(do not round up)October 2013 NYSFAAA Conference 2013 24

Federal Pell Grant – LEUCalculating reduced awardsScenario 2: Student is full-time in a semester program and has 525 EFC and a $5,095 “Scheduled Award” Action: Calculate student’s Pell eligibility by

subtracting the Pell LEU listed on the Pell LEU Report from 600.000%

Report lists LEU of 566.425% 600.000% - 566.425% = 33.575% 33.575% x $5,095 = $1,710.64 First payment period = $1,710.64 or $1,710 Second payment period = $ 0


Federal Pell Grant – LEUCalculating reduced awardsScenario 3: Student is half-time in a semester program and has 525 EFC and a $5,095 “Scheduled award” Action: Calculate student’s Pell eligibility by

subtracting the Pell LEU listed on the Pell LEU Report from 600.000%.

Report lists LEU of 566.425% 600.000% - 566.425% = 33.575% 33.575% x $5,095 = $1,710.64 First payment period ½ time = $1,274 Second payment period = $436.64 or $436


Federal Pell Grant – LEUCalculating reduced awards

Scenario 4: Full-time student in semester program has an EFC of 2550 and an LEU of 599.500% would be eligible for the remaining 0.500% which is $15.475 There is no minimum award for purposes of

determining a student’s award because of the 600% LEU limitation.

Even a student with a very small remaining LEU is eligible to receive the calculated award amount.

The remaining 0.500% which is $15.475 is truncated to $15.47 or, if necessary, rounded down to $15.00.October 2013 NYSFAAA Conference 2013 27

Pell LEU – resolving conflicts What the Student needs to do:

After filing the FAFSA - needs to work with their current institution

Needs to supply all documentation requested What the current institution needs to do:

Work as advocate for the student by facilitating the dispute process

Research the student history in institutional records, COD, and NSLDS

Contact former school(s) and work together to document the enrollment and disbursed funds for the disputed period of time

If there is cause for a dispute, escalate if appropriate Inform the former school(s) of the dispute case number

assignedOctober 2013 NYSFAAA Conference 2013 28


Pell Reconciliation

The process by which Title IV aid (grants, loans and campus based aid) recorded on the Department of Education systems, is reviewed and compared with a school’s internal records. A school must: Identify and resolve discrepancies Document reasons for any ending cash balances Confirm data between business/bursar/comptroller office

records and financial aid system origination and disbursement records

Disbursement definition: 34 CFR 668.164(a) “…an institution makes a

disbursement of title IV, HEA program funds on the date that the institution credits a student’s account at the institution or pays a student or parent directly…


Pell Funding and ReportingPell Reporting: All Title IV Aid 15 day disbursement/adjustment reporting requirement published annually in the Federal Register http://ifap.ed.gov/fregisters/attachments/FR070813.pdf http

://ifap.ed.gov/eannouncements/031513DeadlineDateNoticeImportantPellGrant20122013ReportingDeadlineChange.html

http://www.ifap.ed.gov/eannouncements/090613IASGPellProcDeadline2013.html

Pell Funding: No initial authorization Pell funding increases are made available only by reporting

(and having accepted) actual disbursement records. Can report up to 7 days in advance of the actual disbursement date

http://ifap.ed.gov/fregisters/attachments/FR070813.pdf

http://ifap.ed.gov/eannouncements/031513DeadlineDateNoticeImportantPellGrant20122013ReportingDeadlineChange.html






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