Pell Grant Basics
PASFAA Annual Conference
Harrisburg, PA
Pell Grant Basics
October 2012
1
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•
Scheduled Award
•
Maximum Pell Grant a student with a given EFC
and COA may receive if enrolled full-time for a
full academic year
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•
Annual Award
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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
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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
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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
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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
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•
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)
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(
(
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)
•
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
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•
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
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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
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•
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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Standard term, credit hour programs
•
30 weeks of instructional time
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Full-time status is at least 12 credit hours
•
Academic calendar includes 2
semesters/trimesters or 3 quarters
•
No overlapping terms
Process – Pell,Term Based
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Full-time
at least 12 credits
3/4 time
at least 9 credits
1/2 time
at least 6 credits
< 1/2 time
fewer than 6 credits
Process – Pell,Term Based
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General 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 expenses
–
Limited allowance for room and board
Process – Pell,Term Based
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Use student’s cost of attendance and EFC to
find annual award on Payment Schedules
Process – Pell,Term Based
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Standard term programs use the term as the
payment period
–
Semesters, trimesters, quarters
Process – Pell,Term Based
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Annual Award
# of payment periods in
academic year
Process – Pell,Term Based
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A payment period that overlaps two award
years
•
School must assign the payment period to one
award year
–
Must have a valid EFC for that award year
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•
Enrollment 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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1.
Determine enrollment status
2. Calculate Pell COA
3.
Determine annual award
4.
Determine payment periods
5.
Calculate payment for each
payment period
Process – Pell,Term Based
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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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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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Multiply COA by lesser of these two fractions
:
hours in academic year definition
hours for which costs apply
weeks in academic year definition
weeks for which costs apply
Process – Pell,Term Based
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$17,100 X 24 / 21 =
$19,543
OR
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Take the lesser of the two fractions:
Process – Pell,Term Based
24
21
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•
Use the student’s cost of attendance and EFC
to find annual award on Payment Schedules
Process – Pell, Term Based
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•
Nonstandard term programs use the term as
the payment period
Process – Pell,Term Based
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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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•
Send Origination records electronically to COD
•
Send an Actual Disbursement records
electronically to COD
–
No funds in G5 for until COD accepts the records
–
Disbursement date must reflect actual date of
disbursement
•
Resolve all rejects!! (see COD Technical
Reference, Volume II, Section 4: Edits)
Process – Pell, Term Based
30
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1. Determine enrollment status
2. Calculate Pell COA
3. Determine annual award
4. Determine payment periods
5. Calculate payment for
each payment period
Process – Pell, Non-Term
32
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•
Clock hour programs
–
for Pell calculation purposes, students
in clock hour programs are always
considered to be full-time
–
34 CFR 668.2 defines full-time as at
least 24 clock hours per week
Process – Pell, Non-Term
33
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Prorating COA
If program is longer than or shorter than
statutory academic year, prorate down or up
to reflect one academic year.
Process – Pell, Non-Term
34
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$20,000 x ____ ÷ ____= $______
900
1400
OR
26
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Take the lesser of the two fractions:
Process – Pell, Non-Term
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A
w
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•
Use the cost of attendance and EFC to find
annual award on Payment Schedule
Process – Pell, Non-Term
36
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•
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 1
st
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 1
st
academic year into two equal payment periods
•
Divide remaining portion into two equal payment periods
•
Process – Pell, Non-Term
37
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Process – Pell, Non-Term
38
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C
C
O
O
D
D
•
Send origination records electronically to COD
•
Send actual disbursement records
electronically to COD
–
No funds in G5 until COD accepts the records
–
Disbursement date must reflect actual date of
disbursement
•
Resolve all rejects!! (see COD Technical
Reference, Volume II, Section 4: Edits)
Process – Pell, Non-Term
39
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a
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f
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r
A
A
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u
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t
m
m
e
e
n
n
t
t
s
s
a
a
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n
d
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R
R
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l
l
c
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u
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l
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•
Changes in student information
–
Expected family contribution (EFC)
•
Corrections
•
Updates
•
Professional Judgment
–
Enrollment status
–
Cost of attendance
•
All changes must be submitted to COD
Process – Adjustments & Recalculations
41
E
E
F
F
C
C
C
C
h
h
a
a
n
n
g
g
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A
A
d
d
j
j
u
u
s
s
t
t
m
m
e
e
n
n
t
t
s
s
•
For 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 error
–
Mathematical error
–
Correction from Verification
•
If possible, adjust overpayment or underpayment within same
award year
•
If not possible,
–
Adjustment made in next year or
–
Student repays excess grant
Process – Adjustments & Recalculations
42
E
E
F
F
C
C
C
C
h
h
a
a
n
n
g
g
e
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A
A
d
d
j
j
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m
m
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n
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s
s
For 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
43
E
E
n
n
r
r
o
o
l
l
l
l
m
m
e
e
n
n
t
t
S
S
t
t
a
a
t
t
u
u
s
s
A
A
d
d
j
j
u
u
s
s
t
t
m
m
e
e
n
n
t
t
s
s
•
For term-based, credit-hour programs
•
Pell Grants, IASG, TEACH Grants:
–
Changes between payment periods
•
School must recalculate
–
Changes within payment period
•
School must recalculate if student does not attend at least
one class in all courses used to determine enrollment status
•
Recalculations not required for changes in enrollment status
after
student has begun attendance in all classes
•
School may establish recalculation policy
Process – Adjustments & Recalculations
44
E
E
n
n
r
r
o
o
l
l
l
l
m
m
e
e
n
n
t
t
S
S
t
t
a
a
t
t
u
u
s
s
C
C
o
o
n
n
s
s
i
i
d
d
e
e
r
r
a
a
t
t
i
i
o
o
n
n
s
s
•
School must have
–
Procedure in place to know that a student has
begun attendance in each class
•
If school cannot document attendance, student is
considered not to have begun attendance
–
Policy on recalculation dates
–
Policy on attendance in compressed coursework
(i.e. modules, mini-terms, intersessions, etc)
Process – Adjustments & Recalculations
45
C
C
O
O
A
A
A
A
d
d
j
j
u
u
s
s
t
t
m
m
e
e
n
n
t
t
s
s
•
Pell Grants, IASG, TEACH Grants:
–
Schools are not required to recalculate for
changes during the award year
–
If 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 performance
Should be directed to Jo Ann Borel
Joann.borel@ed.gov
202-5954385
Greg Martin
gregory.martin@ed.gov
215-656-6452
In this collection of images, explore the fundamentals of Pell Grants, including definitions, annual award calculations, initial grant calculations, required recalculations, and transfer student Pell calculations. Learn about the maximum awards students may receive, the importance of accurate enrollment status, and the procedures for recalculations. Discover how Pell Grants support students in their academic pursuits.
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Presentation Transcript
Pell Grant Basics PASFAA Annual Conference Harrisburg, PA October 2012 1
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, , or less than ) 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
Percentage Used Calculation Total Amount disbursed at prior school Percent of Scheduled Award Used Scheduled Award at prior school
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
Formula 1 Summary Standard term, credit hour programs 30 weeks of instructional time Full-time status is at least 12 credit hours Academic calendar includes 2 semesters/trimesters or 3 quarters No overlapping terms Process Pell,Term Based 13
Step 1: Determine Enrollment Status Full-time 3/4 time 1/2 time < 1/2 time at least 12 credits at least 9 credits at least 6 credits fewer than 6 credits Process Pell,Term Based 14
Step 2: Calculate Pell Grant COA General 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 expenses Limited allowance for room and board Process Pell,Term Based 15
Step 3: Determine Annual Award Use student s cost of attendance and EFC to find annual award on Payment Schedules Process Pell,Term Based 16
Step 4: Determine Payment Periods Standard term programs use the term as the payment period Semesters, trimesters, quarters Process Pell,Term Based 17
Step 5: Payment Per Payment Period Annual Award # of payment periods in academic year Process Pell,Term Based 18
Crossover Periods and Pell A payment period that overlaps two award years School must assign the payment period to one award year Must have a valid EFC for that award year 19
Formula 3 Highlights Enrollment 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 20
Five Calculation Steps 1. Determine enrollment status 2. Calculate Pell COA 3. Determine annual award 4. Determine payment periods 5. Calculate payment for each payment period Process Pell,Term Based 21
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: weeks of instructional time in nonstandard term Credit hours in the academic year X weeks of instructional time in program s definition of academic year Process Pell,Term Based 22
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 23
COA Proration Multiply COA by lesser of these two fractions: hours in academic year definition hours for which costs apply weeks in academic year definition weeks for which costs apply Process Pell,Term Based 24
COA Proration Take the lesser of the two fractions: 32 24 24 21 OR $17,100 X 24 / 21 = $19,543 Process Pell,Term Based 25
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 26
Step 4: Determine Payment Periods Nonstandard term programs use the term as the payment period Process Pell,Term Based 27
Step 5: Payment Per Payment Period weeks of instructional time in payment period annual award weeks of instructional time in program s definition of an academic year Process Pell, Term Based 28
Final Step: COD Send Origination records electronically to COD Send an Actual Disbursement records electronically to COD No funds in G5 for until COD accepts the records Disbursement date must reflect actual date of disbursement Resolve all rejects!! (see COD Technical Reference, Volume II, Section 4: Edits) Process Pell, Term Based 29
Calculating Pell Grant Awards Non-term Credit Hour and All Clock-Hour Programs 30
Five Calculation Steps 1. Determine enrollment status 2. Calculate Pell COA 3. Determine annual award 4. Determine payment periods 5. Calculate payment for each payment period Process Pell, Non-Term 31
Step 1: Determine Enrollment Status Clock hour programs for Pell calculation purposes, students in clock hour programs are always considered to be full-time 34 CFR 668.2 defines full-time as at least 24 clock hours per week Process Pell, Non-Term 32
Step 2: Calculate Pell COA Prorating COA If program is longer than or shorter than statutory academic year, prorate down or up to reflect one academic year. Process Pell, Non-Term 33
Step 2: Prorating COA Take the lesser of the two fractions: 26 40 900 1400 OR $20,000 x ____ ____= $______ Process Pell, Non-Term 34
Step 3: Determine Annual Award Use the cost of attendance and EFC to find annual award on Payment Schedule Process Pell, Non-Term 35
Step 4: Determine Payment Periods Program less than an academic year in length Divide into two equal payment periods using the hours and weeks Program longer than an academic year with remainder less than or equal to 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 an academic year Divide 1st academic year into two equal payment periods Divide remaining portion into two equal payment periods Process Pell, Non-Term 36
Step 5: Payment Per Payment Period Scheduled Award times the lesser of: credit or clock hours in the payment period credit or clock hours in program s academic year OR weeks of instructional time in the payment period weeks of instructional time in program s academic year Process Pell, Non-Term 37
Final Step: COD Send origination records electronically to COD Send actual disbursement records electronically to COD No funds in G5 until COD accepts the records Disbursement date must reflect actual date of disbursement Resolve all rejects!! (see COD Technical Reference, Volume II, Section 4: Edits) Process Pell, Non-Term 38
Reasons for Adjustments and Recalculations Changes in student information Expected family contribution (EFC) Corrections Updates Professional Judgment Enrollment status Cost of attendance All changes must be submitted to COD Process Adjustments & Recalculations 40
EFC Change Adjustments For 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 error Mathematical error Correction from Verification If possible, adjust overpayment or underpayment within same award year If not possible, Adjustment made in next year or Student repays excess grant Process Adjustments & Recalculations 41
EFC Change Adjustments For 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 42
Enrollment Status Adjustments For term-based, credit-hour programs Pell Grants, IASG, TEACH Grants: Changes between payment periods School must recalculate Changes within payment period School must recalculate if student does not attend at least one class in all courses used to determine enrollment status Recalculations not required for changes in enrollment status after student has begun attendance in all classes School may establish recalculation policy Process Adjustments & Recalculations 43
Enrollment Status Considerations School must have Procedure in place to know that a student has begun attendance in each class If school cannot document attendance, student is considered not to have begun attendance Policy on recalculation dates Policy on attendance in compressed coursework (i.e. modules, mini-terms, intersessions, etc) Process Adjustments & Recalculations 44
COA Adjustments Pell Grants, IASG, TEACH Grants: Schools are not required to recalculate for changes during the award year If a school recalculates for change in enrollment status, must take into account any changes in COA Process Adjustments & Recalculations 45
Questions? Greg Martin gregory.martin@ed.gov 215-656-6452 Comments about this presentation or my performance Should be directed to Jo Ann Borel Joann.borel@ed.gov 202-5954385
