Federal Pell Grant
Program
NYSFAAA
Conference 2013
Angela Van Dekker
Fordham University
Introduction
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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
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Eligible student is entitled to the funds whether or
not funds remain in the budget
Shortfall in budget could result in prorated awards
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Introduction cont’d
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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.
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Student Eligibility
Student 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
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Five Formulas
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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
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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
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1. Determine Enrollment
Status
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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)
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Determines components of COA based on
credit/clock hours
Determines which payment schedule to use
to calculate scheduled or annual award
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2. Calculating COA
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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
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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 calculations
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Credit/clock hours in AY divided by credit/clock hours
to which costs apply
2.
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.
1.
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Calculating COA,
Clock hour or credit hours, non-term continued
*Taken from 2013-14 Federal Student Aid Handbook Vol. 3 Chap 2 (3-38)
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3. Determining the
“Scheduled Award”
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“Scheduled Award” is the amount of Federal
Pell Grant a full-time student may receive for
a full academic year.
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The student will actually receive less if enrolled
less than full time, i.e. three/quarter- time, halftime, or less than half-time…
Pell Grant Payment Schedules are issued
annually by the U.S. Department of
Education
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Lists EFC (or Pell Grant Index) across top and
COA down the side
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4. Determining the Payment
Period
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The program’s academic year is divided into
payment periods
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For standard term, credit hour programs – payment
period is term
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Determines when Federal Pell Grants are disbursed and
exact amount to disburse
Each semester, trimester or quarter
For non-standard programs, school must define, in
writing, the payment period in clock or credit hours
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Must be at least two equal payment periods for programs
shorter than a year, or within each year if greater than one
year
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5. Calculate the Payment
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Typically – the total disbursements for all
payment periods in an academic year equal
the “Scheduled Award”, unless:
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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.
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Apply two calculations to determine amount
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5. Calculate the Payment,
continued
Formula 1: Standard term, credit hour program
 Scheduled Award = $5,645
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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)
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5. Calculate the Payment,
continued
Formula 4: Clock hour or credit hour non-term
1.
Scheduled award x lesser of:
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Fraction based on weeks of instructional time
Fraction based on credit/clock hours
When 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
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Pell Grant Payment
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Must have a valid ISIR processed by CPS while
the student was enrolled and eligible.
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Deadline is extended for students completing
verification
Special circumstances/situations
Consortium 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
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Remember
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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
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Let’s Do It!!
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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?
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School is semester,
standard term
$4,395
$2,198
$1,099
$3,297
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Let’s Do It!!
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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?
October 2013
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School is semester,
standard term
COA is $39,100
$3,095
$1,548
$1,160
$387
$3,095
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Federal Pell Grant -
Lifetime Eligibility Used (LEU)
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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)
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May receive up to 600% of maximum Pell grant
funding, i.e.,
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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%
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Federal Pell Grant - LEU
COD is THE system of record for Pell Grants
 How do students know their LEU
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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
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Federal Pell Grant - LEU
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COD Transcript
can be provided to
the student by the
institution
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Download Excel
spreadsheet for
student
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Federal Pell Grant - LEU
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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
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Federal Pell Grant – LEU
Calculating reduced awards
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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)
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Federal Pell Grant – LEU
Calculating reduced awards
Scenario 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
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Federal Pell Grant – LEU
Calculating reduced awards
Scenario 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
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Federal Pell Grant – LEU
Calculating 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.
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Pell LEU – resolving conflicts
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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 assigned
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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…
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Pell Funding and Reporting
Pell 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/031513DeadlineDateNoticeImpo
rtantPellGrant20122013ReportingDeadlineChange.html
 http://www.ifap.ed.gov/eannouncements/090613IASGPellProcDeadl
ine2013.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
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Questions????
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