pell grant basics
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Pell Grant Basics. PASFAA Annual Conference Harrisburg, PA. October 2012. Pell Grant Definitions. Scheduled Award Maximum Pell Grant a student with a given EFC and COA may receive if enrolled full-time for a full academic year. Pell Grant Definitions. Annual Award - PowerPoint PPT PresentationTRANSCRIPT
PASFAA Annual ConferenceHarrisburg, PA
Pell Grant Basics
October 2012
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Pell Grant Definitions
• Scheduled Award• Maximum Pell Grant a student with a given EFC and COA may receive if enrolled full-time for a full academic year
Pell Grant Definitions
• Annual Award• For term-based, credit hour programs, based on the
student’s true enrollment status (full, ¾, ½ or less than ½)
– Award taken from the corresponding Annual Award chart– If the student is full-time, Scheduled Award = Annual
Award• For all clock-hour and nonterm credit hour programs, the award is always taken from the full-time Scheduled Award chart
Initial Calculation of a Pell Grant• First calculation of a student’s Pell Grant award, based
on a current, documented enrollment status• May be projected
• Earliest date for calculation is date of receipt of an ED- product EFC• SAR or ISIR
• If no date is documented, date of initial calculation is the later of• Processed date of initial ISIR and the student’s enrollment status as of that date, or
• Date student enrolls
Required Recalculations
• Must have procedures in place to know whether a student has begun all classes
• Must recalculate if• Student’s EFC changes due to verification, corrections, updating or PJ
• Student’s enrollment status and or COA changes from one term to another
• Student never begins attendance in one or more classes• To reflect true enrollment status
Transfer Student Pell Calculation
• Must have current info. from NSLDS or COD for payments received YTD
• Calculation based on % of Scheduled Award used at the first school(s)• % already used is subtracted from 100%• Remaining % of Scheduled Award based on COA and EFC at your school is maximum a student may receive
Amount disbursed at prior school
Total Scheduled Award at
prior school
Percent of Scheduled Award
Used
Percentage Used Calculation
Concurrent Enrollment
• Student may not receive a Pell Grant at two or more schools concurrently
• When COD receives actual disbursement records with enrollment dates that are within 30 days of one another:• COD notifies schools of possibility of concurrent enrollment• Warning Edit code 069 on disbursement record
• MRR is sent to all involved schools if edit s not resolved in 30 days of receipt
• Not the same as a Potential Overaward Process (POP)
Potential Overaward Process (POP)• Exists when COD receives actual
disbursement records that exceed 100% of Scheduled Award during an award year
• COD notifies school • Including Warning Edit 068 on disbursement records
• If POP not resolved within 30 days of notification, COD generates negative disbursements for all schools involved
Origination Record
• Electronic record sent to COD to report Pell awards made by schools to ED/FSA
• Contains the required data to report amount of money a student is eligible to receive for a period of time
• Designated by program (DL or Pell Grant), program and award year
Disbursement Record
• Electronic file sent COD to report Pell disbursements made by schools to ED/FSA
• Contains the required data to report amount of money a student actually received, will receive and for what payment period
• Designated by program (e.g., Direct Loan or Pell Grant), by institution and by award year
Lifetime Limits for Pell Eligibility
• Limits Pell eligibility to 12 semesters or its equivalent • Equivalent is 6 Scheduled Awards (%600)
• Students enrolled less than full-time assessed at the fractional enrollment status
• COD tracks student %used
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Formula 1 SummaryStandard term, credit hour programs30 weeks of instructional timeFull-time status is at least 12 credit hoursAcademic calendar includes 2 semesters/trimesters or 3 quartersNo overlapping terms
Process – Pell,Term Based
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Step 1: Determine Enrollment Status
Full-time at least 12 credits3/4 time at least 9 credits1/2 time at least 6 credits
< 1/2 time fewer than 6 credits
Process – Pell,Term Based
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Step 2: Calculate Pell Grant COAGeneral rule
Use full-time, full-year costs Exception to general rule
When student is attending less than 1/2 time, use full-time, full-year costs for each allowable component
Some components not allowed for less than 1/2 time enrollment No miscellaneous and personal expensesLimited allowance for room and board
Process – Pell,Term Based
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Step 3: Determine Annual Award
Use student’s cost of attendance and EFC to find annual award on Payment Schedules
Process – Pell,Term Based
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Step 4: Determine Payment Periods
Standard term programs use the term as the payment periodSemesters, trimesters, quarters
Process – Pell,Term Based
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Step 5: Payment Per Payment Period
Annual Award# of payment periods in
academic year
Process – Pell,Term Based
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Crossover Periods and PellA payment period that overlaps two award yearsSchool must assign the payment period to one award year
Must have a valid EFC for that award year
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Formula 3 HighlightsEnrollment status is different for nonstandard terms.Cost of attendance proration may apply.Pell payment per payment period is determined using number of weeks in the
nonstandard term.
Process – Pell,Term Based
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Five Calculation Steps1. Determine enrollment status2. Calculate Pell COA3. Determine annual award4. Determine payment periods5. Calculate payment for each payment period
Process – Pell,Term Based
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Step 1: Determine Enrollment Status
If a school’s academic calendar contains nonstandard terms, full-time enrollment status for each term must
be determined using a regulatory formula:
Process – Pell,Term Based
weeks of instructional time in nonstandard term
X weeks of instructional time in program’s definition of academic year
Credit hours in the academic year
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Step 2: Calculate Pell Grant COA
Prorating Cost of Attendance
When cost is for a period longer or shorter than the statutory academic year, prorate the cost down or up to reflect one academic year’s cost.
Process – Pell,Term Based
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COA Proration Multiply COA by lesser of these two fractions:
hours in academic year definition
hours for which costs applyweeks in academic year definition
weeks for which costs apply
Process – Pell,Term Based
COA Proration
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$17,100 X 24 / 21 = $19,543
OR 3224
Take the lesser of the two fractions:
Process – Pell,Term Based
2421
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Step 3: Determine Annual Award
Use the student’s cost of attendance and EFC to find annual award on Payment Schedules
Process – Pell, Term Based
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Step 4: Determine Payment Periods
Nonstandard term programs use the term as the payment period
Process – Pell,Term Based
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Step 5: Payment Per Payment Period
weeks of instructional
time in program’s definition of an academic year×
Process – Pell, Term Based
annual award
weeks of instructional time in payment period
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Final Step: CODSend Origination records electronically to CODSend an Actual Disbursement records electronically to COD
No funds in G5 for until COD accepts the recordsDisbursement date must reflect actual date of disbursement
Resolve all rejects!! (see COD Technical Reference, Volume II, Section 4: Edits)
Process – Pell, Term Based
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Calculating Pell Grant Awards Non-term Credit Hour andAll Clock-Hour Programs
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Five Calculation Steps1. Determine enrollment status2. Calculate Pell COA3. Determine annual award4. Determine payment periods5. Calculate payment for
each payment period
Process – Pell, Non-Term
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Step 1: Determine Enrollment Status
Clock hour programsfor Pell calculation purposes, students in clock hour programs are always considered to be full-time34 CFR 668.2 defines full-time as at least 24 clock hours per week
Process – Pell, Non-Term
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Step 2: Calculate Pell COA
Prorating COAIf program is longer than or shorter than statutory academic year, prorate down or up
to reflect one academic year.
Process – Pell, Non-Term
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Step 2: Prorating COA
$20,000 x ____ ÷ ____= $______
9001400
OR2640
Take the lesser of the two fractions:
Process – Pell, Non-Term
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Step 3: Determine Annual Award
Use the cost of attendance and EFC to find annual award on Payment Schedule
Process – Pell, Non-Term
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Step 4: Determine Payment Periods
Program less than an academic year in length• Divide into two equal payment periods using ½ the hours and weeks
Program longer than an academic year with remainder less than or equal to ½ an acad. Yr.
• Divide 1st academic year into two equal payment periods • Use remaining portion as a single payment period
Program longer than an academic year but less than two academic years – remaining portion greater than ½ an academic year
• Divide 1st academic year into two equal payment periods• Divide remaining portion into two equal payment periods
• Process – Pell, Non-Term
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Step 5: Payment Per Payment Period
Scheduled Award times the lesser of:
credit or clock hours in the payment periodcredit or clock hours in program’s
academic year OR
weeks of instructional time in thepayment period
weeks of instructional time in program’s academic year
Process – Pell, Non-Term
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Final Step: CODSend origination records electronically to CODSend actual disbursement records electronically to COD
No funds in G5 until COD accepts the recordsDisbursement date must reflect actual date of disbursement
Resolve all rejects!! (see COD Technical Reference, Volume II, Section 4: Edits)
Process – Pell, Non-Term
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Adjustments and Recalculations
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Reasons for Adjustments and Recalculations
Changes in student informationExpected family contribution (EFC)
Corrections UpdatesProfessional Judgment
Enrollment statusCost of attendance
All changes must be submitted to COD
Process – Adjustments & Recalculations
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EFC Change AdjustmentsFor Pell Grants & IASG, if EFC changes any time during the award year, school must recalculate the amount of Pell grant award for entire award year (34 CFR 690.80)Adjust for changes due to
Clerical errorMathematical errorCorrection from Verification
If possible, adjust overpayment or underpayment within same award yearIf not possible,
Adjustment made in next year orStudent repays excess grant
Process – Adjustments & Recalculations
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EFC Change AdjustmentsFor Campus-Based Aid, Direct Loans, and TEACH Grants
• If adjustments change EFC, must submit corrections to CPS for reprocessing• Repackaging may be necessary
• If adjustments do not change EFC, may award based on original data
Process – Adjustments & Recalculations
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Enrollment Status Adjustments For term-based, credit-hour programsPell Grants, IASG, TEACH Grants:
Changes between payment periodsSchool must recalculate
Changes within payment periodSchool must recalculate if student does not attend at least one class in all courses used to determine enrollment statusRecalculations not required for changes in enrollment status after student has begun attendance in all classesSchool may establish recalculation policy
Process – Adjustments & Recalculations
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Enrollment Status ConsiderationsSchool must have
Procedure in place to know that a student has begun attendance in each classIf school cannot document attendance, student is considered not to have begun attendance
Policy on recalculation datesPolicy on attendance in compressed coursework (i.e. modules, mini-terms, intersessions, etc)
Process – Adjustments & Recalculations
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COA AdjustmentsPell Grants, IASG, TEACH Grants:
Schools are not required to recalculate for changes during the award yearIf a school recalculates for change in enrollment status, must take into account any changes in COA
Process – Adjustments & Recalculations
Questions?
Comments about this presentation or my performanceShould be directed to Jo Ann [email protected]
Greg [email protected]