pell grants - 2011 u.s. department of education april 2011

Pell Grants - 2011Pell Grants - 2011

U.S. Department of EducationU.S. Department of Education

April 2011April 2011

Initial Calculation Initial Calculation &&

RecalculationRecalculation

Initial CalculationInitial Calculation

• An initial calculation is the first calculation of a student’s Federal Pell Grant award.

• The institution must use the current, documented enrollment status (may be a projected status).

• If no date documented, the date of initial calculation is the later of:– Processed date of the initial SAR or ISIR, or– Date the student enrolls

Date of Initial CalculationDate of Initial Calculation

• Earliest possible date is date of receipt of an EFC from an ED product (assuming Pell Payment Schedule has been issued), such as:– ISIR (SAR) with an official EFC– FAA Access EFC– FAFSA on the Web EFC

• School may choose a later date such as completion of verification

Required RecalculationRequired Recalculation

• Enrollment status changes between terms

• Student never begins attendance in one or more classes

Required RecalculationRequired Recalculation• Lump sum payment according to work completed in

prior payment periods

– Must use final enrollment status of prior terms with no disbursements

– If final enrollment status for the term is different from initial calculation, must recalculate

– Include in enrollment status only courses completed (includes earned F’s and incompletes)

– Cannot include drops or withdrawals in enrollment status

Institutional OptionsInstitutional Options

• Recalculations for changes in enrollment status– Recalculates for all changes in enrollment

status during the term– Does not recalculate for changes in enrollment

status at any time in a term after initial calculation (assumes student has begun all classes)

– Does not recalculate after a census date

Institutional Options Institutional Options • May have a census date

– For term

– By course

• A student’s ultimate census date for the term is the census date of the last course the student attends or is expected to attend

• If a student drops, withdraws from, or adds a class before census date, must recalculate based on any change in enrollment status through that census date

Valid ISIR (SAR) and New EFCValid ISIR (SAR) and New EFC

• Receipt of a valid ISIR (SAR) after an initial calculation with a new EFC requires recalculating a student’s award

• Enrollment status used after an initial calculation depends on whether– ISIR (SAR) is received in the term, and – A disbursement has been made for a prior term

Valid ISIR (SAR) and New EFCValid ISIR (SAR) and New EFC

• No disbursement for a term has been made

– If receive a valid ISIR (SAR) in a term:

• must use the effective enrollment status for that term under the institution’s policies for recalculations

– If receive a valid ISIR (SAR) in a subsequent term:

• disbursement for a prior term is based on the enrollment for the work completed in the prior term

Valid SAR/ISIR and New EFCValid SAR/ISIR and New EFC

• Disbursements have been made

– If receive a valid ISIR (SAR) in a term:

• must use the effective enrollment status for that term under the institution’s policies for recalculations

– If receive a valid ISIR (SAR) in a subsequent term:

• must use the effective enrollment status under the institution’s policies for recalculations for a prior term with a disbursement

Multiple Reporting RecordsMultiple Reporting Records

Concurrent EnrollmentConcurrent Enrollment&&

Potential Overaward ProcessPotential Overaward Process

Concurrent EnrollmentConcurrent Enrollment• Student may not receive a Pell Grant at two or more schools

concurrently– Regardless of whether from the 1st or 2nd Scheduled Award– Separate from the POP process

• If concurrent enrollment appears to exist (reported enrollment dates within 30 days of each other), COD sends the school that submitted the disbursement Warning Edit 069 – MRR issued to reporting school and all other schools with

accepted disbursement information in COD for that student and that award year

• Concurrent enrollment must be resolved– One school must back out its payment (if actual concurrent

enrollment)

Potential Overaward Process (POP)Potential Overaward Process (POP)• POP based upon student receiving no more than

one Scheduled Pell Grant award in an award year (100%)

• If student meets certain conditions, law now allows a student to receive two Scheduled Pell Grant awards in an award year (200%)

• COD will continue to monitor based on 100% of a Scheduled Award

– Unless AEI is set to “true”

Potential Overaward Process (POP)Potential Overaward Process (POP)

• A student may receive disbursements from more than one Attended School

– When more than one Attended school reports disbursements for a student, COD checks that more than 100% eligibility has not been used

– No single school may pay more than 100%

• If the COD system receives disbursement information that student has received more than 100% of Scheduled Award, student is in a POP situation


• COD response to a POP situation is to allow it to exist for 30 days from date MRR is created

– Notifies all schools involved that POP situation must be resolved within 30 calendar days

– Continues to accept disbursement information

– Student will be removed from POP status if:

–Downward adjustments bring TEU to 100% or less

–School submits maintenance record with AEI set to “true”


• Unresolved POP – more than 30 days– COD reduces all accepted and posted

disbursements to $0.00 at all schools• Each school that correctly paid Pell funds must

re-report disbursement information to COD• COD does not prevent another POP for same

student– During POP, COD School Relations Center is

involved• Escalates issue if same schools create another

POP

Potential Overaward Process (POP)Potential Overaward Process (POP)• Two Pells in an award year

– When AEI is set to “true” COD will not place student in POP status – 200% of Scheduled Award is available

– With the addition of the AEI, it is critical that schools monitor Pell eligibility in order to prevent overawards

• Never acceptable to set AEI to “true” merely to avert or clear a POP

– No POP for exceeding 200% of Scheduled Award• COD will not allow TEU to exceed 200% with AEI set

to “true” Issues Warning and Correction/Reject Edits

Two Pells InTwo Pells In One Award Year One Award Year

Pell ConstantsPell Constants

Unchanged by Two Pells:

• Scheduled Award– Is the amount that a full-time student would

receive for a full academic year based on the student’s EFC and COA

– Prorated by payment period based on hours and weeks of instructional time attended

– Payment for a payment period calculations– Payment periods

““Two Pell” ChangesTwo Pell” Changes

Changed by Two Pells:

• Student may receive up to 200% of the Scheduled Award (SA) in one award year

• Student NOT eligible for 2nd SA payment as a less-than-half-time student

• Institution may NOT assign a crossover payment period to either award year as a general policy or on a case-by-case basis; must use higher award

Two Pell Grants In An Award YearTwo Pell Grants In An Award YearEffective beginning with the 2009-2010 award year

• Students may receive up to two scheduled Pell Grants during an award year if enrolled in any eligible program of study longer than one academic year in length, including approved programs for students with intellectual disabilities

• Objective is to help needy students accelerate their academic progress

• NOT OPTIONAL for schools

• Pell schools must award/disburse 2nd Scheduled Award funds if student is eligible

Two Pell Grants In An Award YearTwo Pell Grants In An Award Year• No change in way disbursement for payment period

is calculated• Pell Grant formulas have not changed• Calculation uses one Scheduled Award for

both 1st and 2nd Scheduled Awards for an award year

• School continues to pay eligible student until reaching 200% of Scheduled Award for the same award year– May begin paying from 2nd award while paying

balance of 1st award

Two Pell Grants In An Award YearTwo Pell Grants In An Award Year

• Students may be eligible for 2010-11 2nd Scheduled Award funds in SPRING 2011– Semester school

• If paid 2010-11 in summer 2010 and fall 2010

– Quarter school • If paid 2010-11 in summer 2010, fall 2010,

and winter 2011

Student Enrollment StatusStudent Enrollment Status

• For receipt of 1st Scheduled Award, student may be at any enrollment status

• For receipt of any part of 2nd Scheduled Award, student must be enrolled at least half-time

Academic Year ProgressionAcademic Year Progression

• To receive a 2nd Scheduled Award, student must be enrolled in credit or clock hours attributable to 2nd academic year in award year

• Use your Title IV academic year definition– Must be at least

• 24 semester/trimester credit hours• 36 quarter credit hours• 900 clock hours


• At least one credit or clock hour in payment period during which 2nd Scheduled Award will be paid must be attributable to the student’s 2nd academic year

• Add earned credit hours from previous terms in award year to current enrollment to determine if total is greater than academic year definition


• In determining if student is in second academic year, may not count credit/clock hours earned through• Advanced Placement (AP)• International Baccalaureate (IB)• Testing out• Life experience• Other similar competency measures

• Remedial credits DO count

Fall 201050% Paid12 HoursEarned

(24 total, 100% paid)

Summer 201050% Paid12 HoursEarned

First Scheduled Award

Spring 2011Enrolled in15 Hours(39 total)

> 24 Hours

Half-time = Yes2nd Academic Year

= YesPay portion 2nd

Scheduled Award

Assumes Academic Year Defined as 24 Semester Hours

Look At Academic Year Look At Academic Year Hours EarnedHours Earned

Spring disbursement is 50%0% 1st Scheduled Award remainingPay 50% 2nd Scheduled Award

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Fall 201037.5% Paid

9 HoursEarned

(15 total, 62.5% paid)

Summer 201025% Paid6 HoursEarned


Spring 2011Enrolled in12 Hours(27 total)>24 Hours

Half-time = Yes2nd Academic Year =

YesPay portion 2nd Scheduled Award



Spring disbursement is 50%Pay 37.5% 1st Scheduled Award remainingPay 12.5% 2nd Scheduled Award

Spring 201150% Paid15 HoursEarned


Fall 201050% Paid12 HoursEarned


Summer 2011Enrolled in

6 Hours(33 total)

> 24 Hours

Half-time = Yes2nd Academic Year = Yes

Pay portion 2nd Scheduled Award



Summer disbursement is 25%0% 1st Scheduled Award remainingPay 25% 2nd Scheduled Award

Spring 201137.5% Paid

9 HoursEarned


Fall 201037.5% Paid

9 HoursEarned



6 Hours(24 total)Not >24

Half-time = YES2nd Academic Year = No2nd Scheduled Award =

N/E



Summer disbursement is 25%Pay 25% 1st Scheduled Award remaining

Academic Year Progression Academic Year Progression • School may waive requirement of enrollment in

hours attributable to second academic year only for special circumstances

– Must be due to circumstances beyond the student’s control

– Must be determined and documented on individual basis

– May include special circumstances such as illness or required classes not offered by school

• Does not include withdrawing to avoid a particular grade or failing to register for offered class

Crossover Payment Period Crossover Payment Period

• Payment period that includes June 30 and July 1 -- crosses over two award years

– May be a term or a nonterm payment period

• Pell must be assigned to one award year

– Must have valid SAR/ISIR for assigned year

• Pell may be awarded with EFC from different award year than other Title IV aid

– Must use same EFC, COA, and need for all Title IV programs except Pell

– For Pell must use EFC from award year from which student will be paid

Crossover Payment Period Crossover Payment Period • Must assign a crossover payment period, for Pell

purposes, to award year in which student receives greater payment of Pell for that payment period– Based upon information available at initial calculation

• Must reassign payment period if receive information showing greater payment would result from “other” award year– Reassignment requirement stops with ED published

deadline

• Reassigning payment period after deadline at school’s option – ED will set “not later than” date

ACG & SMART GrantACG & SMART Grant

• Crossover payment period 2011

– Regulation states that ACG/SMART in cross-over period must be paid from same award year as Pell will be paid for that crossover period

• No funds available in 2011-12

– Any ACG/SMART awarded must be paid from 2010-11 award year

• Program ends after 2010-11 award year

• If you pay 2011-12 Pell, there is no ACG/SMART

Revision Could Create OverawardRevision Could Create Overaward

• School must resolve any overaward created by payment of Pell later in the payment period or after the payment period has ended

10/11100% Paid


6 Hours

Which Year To Pay In Summer 2011? Which Year To Pay In Summer 2011? Semester School Semester School

Assume eligible for 2nd Scheduled Award 10/11Summer 6 Hours = 25% Scheduled AwardIs there 25% of 10/11 remaining? Yes

Compare payment dollars, not EFC’s or Scheduled Awards, and pay higher dollars

25% 10/11 Scheduled Award vs. 25% 11/12 Scheduled Award

10/1175% Paid


9 Hours

Which Year To Pay In Summer 2011? Which Year To Pay In Summer 2011? Semester SchoolSemester School

Not eligible for 2nd Scheduled Award 10/11Summer 9 Hours = 37.5% Scheduled AwardIs there 37.5% of 10/11 remaining? No


25% 10/11 Scheduled Award vs. 37.5% 11/12 Scheduled Award

10/11100% Paid


5 Hours

Which Year To Pay In Summer 2011? Which Year To Pay In Summer 2011? Semester SchoolSemester School

Not eligible for 2nd Scheduled Award 10/11Summer 5 Hours = 12.5% Scheduled AwardIs there 12.5% of 10/11 remaining? No


0% 10/11 Scheduled Award vs. 12.5% 11/12 Scheduled Award

Comparing Award Years For Summer Comparing Award Years For Summer 20112011

• Term dates 5-23-11 to 8-19-11

• Initial 2010-11 calculation made prior to term start

• Summer census date 6-3-11

• Student enrolled 12 hours at census date

• 2010-11 award finalized at full-time

• 6-16-11 student withdraws from 3 hour course

• 2011-12 ISIR processed on 6-27-11

• How many hours used for 2011-12 Pell award?

Comparing Award Years For Comparing Award Years For Summer 2011Summer 2011

• Term dates 5-23-11 to 8-19-11



• 2010-11 award calculated at census date, using half-time enrollment

• 6-27-11 student enrolls for additional 6 hours




• Term dates 5-23-11 to 8-19-11




• 2010-11 award finalized at full-time


• 8-19-11 grade for 4 hour course as “Unearned F”




• Term dates 5-23-11 to 8-19-11




• 2010-11 award finalized at three-quarter time


• 8-19-11 grade for 4 hour course as “Earned F”



Two Pell Grants In An Award YearTwo Pell Grants In An Award YearTransfer StudentsTransfer Students

• Must determine completed hours in award year at other schools

• If less than first Scheduled Award disbursed, two ways to determine hours earned

– Assumption Method

– Hours Earned Method

• Method at option of school

– Student by student

– Same policy for all students

Transfer StudentsTransfer StudentsAssumption MethodAssumption Method

• Assume completed first academic year if first scheduled award fully disbursed at prior school(s)

• Assume student completed the same ratio of the academic year as the % of Pell received

• Prior school disbursed $1,784 of $5,350

• Your school’s academic year is defined as 24 credits

• $1,784 X 24 / $5,350 = 8 credits earned at prior school

Add together result of calculation from each prior school

• Student starts at your school with 8 credits

• ALWAYS ROUND DOWN!!

Transfer Students - Hours Earned Transfer Students - Hours Earned MethodMethod

• Use transcripts to count actual hours earned at prior schools

– Does not matter if hours transfer to your school

– Must have information that includes time periods when hours were earned

– Cannot count hours earned through

• AP, IB, testing out, life experience, or other similar competency measures

– Must count hours earned in crossover payment period as current award year

Hours Earned ExampleHours Earned Example• Prior school disbursed $3,932 out of $5,550 Scheduled

Award

• Using Assumption method-– Your school’s academic year is defined as 24 credits– $3,932 X 24 / $5,550 = 17 credits earned at prior

school

• Using Hours earned method-– Actual transcript from prior school reflects 27 credits

earned

• Student will benefit from Hours Earned method, because it gives him 2nd Scheduled Award eligibility

Crossover Pell ReportingCrossover Pell Reporting

• If Pell disbursements must change award years due to requirement to pay largest payment then-

– COD • Cancel disbursement from the incorrect year and

re-originate and enter actual disbursement amount under the correct award year

– G5• Business Office will do a draw-down adjustment

reassigning the Pell disbursement to the correct award year and draw down any additional Pell funds from the proper award year if necessary

Crossover Pell ReportingCrossover Pell Reporting

• If Pell disbursements must change award years due to requirement to pay largest payment then-

– G5 • 2011-12 Pell Grant funds available within days of

release of payment schedules

– FISAP • Report Pell disbursement for award year from which

Pell was paid

• If FISAP already filed, adjustments made during Fall edit/correction process (by December 15) or post-adjustment

COD Reporting COD Reporting 2nd Scheduled Award2nd Scheduled Award

• Added new field in COD Common Record– Additional Eligibility Indicator (AEI)

• Set AEI to “true” and increase award amount when awarding any part of 2nd Scheduled Award

• When AEI set to “true” no POP MRR – Will trigger Concurrent Enrollment MRR

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Student Name

Your University

COD Screen

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COD Screen

Your Region III Training TeamYour Region III Training Team

• Greg Martin, Training Officer– 215-656-6452– [email protected]

• Craig Rorie, Training Officer– 215-656-5916– [email protected]

• Annmarie Weisman, Training Officer– 215-656-6456– [email protected]

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Thank

you!

Contact InformationContact Information

• If you have follow-up questions about this session, contact me at:

Annmarie Weisman, Training [email protected]

• To provide feedback to my supervisor, contact:Tom Threlkeld, [email protected]

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mailto:[email protected]

mailto:[email protected]

pell grants - 2011 u.s. department of education april 2011

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