Year Round Pell Grant – Credit Hour SchoolsPresented by Melissa Ibañez

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Agenda

• Legislative Authority• Effective Date• Student Eligibility• Semester and quarter examples• Cross-over payment periods• Acceleration• Transfer Students• Special Circumstances• Pell Reporting

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Legislative Authority

• Higher Education Opportunity Act 2008 (Reauthorization) – August 14, 2008

- Title IV Part A. Section 401

• Final Rule; General and Non-loan Programmatic Issues – Federal Register

– published October 29, 2009

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Legislative Authority con’t

• Old Law - Allows Pell recipients to receive up to ONE

scheduled award in an award year (=100%)

• New Law - Allows Pell recipients to receive up to

TWO scheduled awards in an award year (=200%) to allow them to accelerate their progress towards their degree.*

*Objective

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Effective Date

• Effective for the 2009-10 Award Year

- Effective July 1, 2009 (can use proposed rules) but since Final Rules published 10/29/2009, actually effective July 1, 2010 (must use final rules).

• Implementation by schools is not optional.

• Students eligible for second scheduled awards in 2009-10 must be paid.

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Two Pells: Student Eligibility

• First scheduled award disbursement is made to student at any enrollment status.

• Second scheduled award disbursement is only made to students:

- Enrolled at least half time.

- That have received 100% of first scheduled award.

- Starting in 2010-11 student must demonstrate academic year acceleration.

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Term-based Calc – old rule (sem)

• Old law – one scheduled award per year

Fall 2009 Spring 2010 Sum 2010 100%

$2,675 $2,675 $0 2009-10 AY

= 2009-10 Award year

Sum 2010 Fall 2010 Spring 2011 100%

$2,775 $2,775 $0 2010-11 AY

= 2010-11 Award year

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Term-based Yr. Round Pell (sem)

• Up to 2 scheduled awards per award year

Fall 2009 Spring 2010 Sum 2010 150%

$2,675 $2,675 $2,675 2009-10 AY

= 2009-10 Award year

Fall 2010 Spring 2011 Sum 2011 150%

$2,775 $2,775 $2,775 2010-11 AY

= 2010-11 Award year

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Yr. Round Pell (sem)

• Students may receive up to TWO scheduled awards:

Sum 2009 Fall 2009 Spring 2010 Sum 2010

$2,675 $2,675 $2,675 $2,675

2009-10 Award year = 200%

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Term-based Calc – old rule (qtr)

• Old law – one scheduled award per year

= 2009 -10 Award year

Fall 09 Winter 10 Spring 10 Sum 10 100%

$1,784 $1,783 $1,783 $0 09-10 AY

Sum 10 Fall 10 Winter 11 Spring 11 100%

$1,850 $1,850 $1,850 $0 10-11 AY

= 2010 -11 Award year

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Term-based Yr. Round Pell (qtr)

• Up to 2 scheduled awards per award year

= 2009 -10 Award year

Fall 09 Winter 10 Spring 10 Sum 10 133.3%

$1,784 $1,783 $1,783 $1,784 09-10 AY

Fall 10 Winter 11 Spring 11 Sum 11 133.3%

$1,850 $1,850 $1,850 $1,850 10-11 AY

= 2010 -11 Award year

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Yr. Round Pell (qtr)

• Students may receive up TWO scheduled awards:

Sum 09 Fall 09 Winter 10 Spring 10 Sum 10

$1,784 $1,783 $1,783 $1,784 $1,783

2009 -10 Award year = 166.7%

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What if I have remaining eligibility from the first scheduled award?

• If the calculated award for a payment period is greater than the remaining balance of the first scheduled award, then you would use what is left of the first scheduled award and add to it an amount from the second scheduled award.

- you will award it as one amount (not 2)

- It will also be reported to COD as one amount;

the Additional Eligibility Indicator(AEI) allows more than 100% of scheduled award to be paid

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Cross-over Payment Period

- Payment period includes both June 30 and July 1

- Must be assigned to one award year

- Must have valid SAR/ISIR for assigned year

- School MUST award Pell from the award year with highest award amount for the payment period for the student

(effective for 2010-2011 award year)

- May be different award year for Pell than for other Title IV aid

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New Regs for Cross-over Term

Changes –• Until date published in Federal Register

(September???)

- Must reassign payment period if information received showing greater payment from other Award Year

- Must compare again if re-calculating for any reason (eg. revised ISIR, change in enrollment status)

• May monitor and adjust AFTER Federal Register date

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Examples (sem)

1. Fall 2009 Spring 2010 Sum 2010 100%

$2,675 $2,675 $0 2009-10 AY

Sum 2010 Fall 2010 Spring 2011 150%

$2,775 $2,775 $2,775 2010-11 AY

2. Sum 2009 Fall 2009 Spring 2010 Sum 10

$2,675 $2,675 $2,675 $2,775

2009-10 2010-11

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Examples (qtr)

1. Fall 09 Winter 10 Spring 10 Sum 10 100%

$1,784 $1,783 $1,783 $0 2009-10 AY

Sum 10 Fall 10 Winter 11 Spring 11 133.3%

$1,850 $1,850 $1,850 $1,850 2010-11 AY

2. Sum 09 Fall 09 Winter 10 Spring 10 Sum 10

$1,784 $1,783 $1,783 $1,784 $1,850

2009-10 2010-11

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Cross-Over Transition

• 2009-10 AY – generally, if awarding second scheduled award from 09-10 (including summer 2010 cross-over) new regulations do not apply.

• 2010-11 AY – generally, if awarding from 10-11 and beyond (including summer 2010 cross-over) new regulations do apply.

• Must develop 2010 cross-over policy prior to July 1, 2010 or regulations apply.

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• If make policy PRIOR to 7/1/2010 can –

1. Can treat this summer as a trailer and use only 09-10 (that’s it – don’t look at 10-11) doesn’t matter if 10-11 is higher & do not need to show acceleration toward degree- i.e. rules do not apply, unless school’s policy states they will

2. Can also choose to award students from 10-11 –in this case must pay higher of 09-10 or 10-11 award, if use 09-10 acceleration rule do not apply unless school’s policy calls for it; if use 10-11 acceleration rules do not apply as this would not be second scheduled award

3. Can award on student by student basis

Cross-Over Transition

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• If you do not have a policy established BEFORE July 1, 2010:

- Must pay higher of student’s 09-10 or 10-11 award.

- If 09-10, acceleration rule applies, regardless of

school’s policy.

- If student has not progressed to next AY, student

not eligible for 09-10 award therefore pay Pell

from 10-11, if eligible.

Cross-Over Transition cont.

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Acceleration

• Only applies to second scheduled award• At least one credit or clock hour in

payment period must be attributable to the student’s next academic year.

• This is not the same as “grade progression”.• Must be applied for any required recalculation.• Applies beginning with 10-11 award year.

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Academic Yr. Progression (sem)

Fall 2009 Spring 2010 Summer 2010

50% Paid 50% Paid Enrolled In

12 Hours 12 Hours 6 Hours

Earned Earned ELIGIBLE

First scheduled award 2nd scheduled award

No hours to Prior Academic Year Six hours for New Academic Year Pay 25% of 2nd Scheduled Award

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Academic Yr. Progression (sem)

Fall 2009 Spring 2010 Summer 2010

50% Paid 50% Paid Enrolled In

12 Hours 9 Hours 6 Hours

Earned Earned ELIGIBLE

First scheduled award 2nd scheduled award

3 hours to Prior Academic Year 3 hours for New Academic Year Pay 25% of 2nd Scheduled Award

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Academic Yr. Progression (sem)

Fall 2009 Spring 2010 Summer 2010

50% Paid 50% Paid Enrolled In

9 Hours 9 Hours 6 Hours

Earned Earned NOT ELIGIBLE

First scheduled award 2nd scheduled award

6 hours to Prior Academic Year

No hours for New Academic Year

Cannot pay 2nd Scheduled Award

May pay from upcoming award year- (acceleration does not apply as not 2nd scheduled award)

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Academic Yr. Progression (sem)

Sum 2010 Fall 2010 Spring 2011

50% Paid 50% Paid Enrolled In

9 Hours 9 Hours 6 Hours

Earned Earned NOT ELIGIBLE

First scheduled award 2nd scheduled award

**Can’t pay as not cross-over period and not making academic progression (assuming 24 cr. AY)

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Academic Yr. Progression (qtr)= 36 hrs

6 hours to prior AY No hours for new AY Not eligible for 2nd scheduled award May pay from upcoming award year

Fall 10 Winter 11 Spring 11 Summer 11

34% pd 33% pd 25% pd reg 6 hr

12 hr 9 hr 9 hr not elig

earned earned earned

First Scheduled Award

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5 hours to prior AY 1 hour for new AY Pay 13% remaining of 1st scheduled award And pay 3.7% from 2nd scheduled award

Fall 10 Winter 11 Spring 11 Summer 11

25% pd 25% pd 33% pd reg 6 hr

10 hr 9 hr 12 hr ELIGIBLE

earned earned earned

First Scheduled Award

Academic Yr. Progression (qtr)= 36 hrs

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Transfer Students

• Assume student completed first AY if used 100% of first scheduled award at prior school(s).

• If rec’d less than 100% - assume student completed the same ratio of the AY as the % of scheduled award rec’d (per NSLDS) – round up.

• School may choose to use actual hours earned at prior school(s).

- Credits do not have to transfer in to be counted.

- Credits do have to relate to current academic program.

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Assumption Method

• Assume student completed the same ratio of the AY as the % of Pell received:

• SEM – AY = 24 cr; $2,007 of $5,350 disb at prior school - $2,007 x 24/$5,350 = 9 cr assumed earned toward completion of 1st AY

• QTR – AY = 36 cr; $1,784 of $5,350 disb at prior school - $1,784 x 36/$5,350 = 12 cr assumed earned toward completion of 1st AY

• If decimal, round up

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Eligibility

• Eligibility for 2nd scheduled award may

not use hours based on:

- Advanced placement (AP) program

- International Baccalaureate (IB) programs

- Testing out, life experience (CLEP) or similar

competency measures

• However it may include remedial coursework

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Special Circumstances

• Academic Year completion requirement

can be waived if –

- FAA determines that student was unable

to complete the hours of the first AY due to

‘circumstances beyond the student’s control’.

- Determination must be documented and made

on a student by student basis.

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Special Circumstances cont.

• Special Circumstances beyond a student’s control:

- May include, but are not limited to

Student withdrawing due to illness

Student unable to register for classes b/c required classes were not offered

- Does not include, for example

Withdrawing to avoid a particular grade

Failing to register to avoid a particular instructor

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Pell Reporting – Cross-Over Period

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

- COD: cancel disbursement from incorrect year and re-originate and enter actual disbursement amount under

the correct award year.

- G-5: Bus Office will do draw down adjustment reassigning the Pell disb to the correct award year and draw down

any addt’l Pell funds from the proper award year, if necessary.

- FISAP: Report Pell disbursement on the FISAP for the award year from which the Pell was paid.

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Yr. Round Pell Grant COD Reporting

• http://www.ifap.edgov/eammouncements/attacjments/062409PreRelease8ptCODSysAttach.pdf

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Yr. Round Pell Grant COD Reporting

• New field added to COD record

- Additional Eligibility Indicator (AEI)

• AEI set to true for eligible and false for ineligible

- True allows up to 200% of award

- False contains award at 100%

• AEI student will not trigger POP/MRR but will trigger concurrent enrollment MRR

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AEI CHECK BOX