Transcript Pell Grant Basics

The
Federal Pell Grant
Cynthia Thornton
Trevor Summers
Training Officers
Dallas Regional Office
What’s a Pell Grant?
• The Pell Grant program is a type of post-secondary,
educational federal grant program sponsored by the
U.S. Department of Education.
• It is named after U.S. Senator Claiborne Pell and
originally known as the Basic Educational
Opportunity Grant program. Grants, which do not
require repayment, are awarded based on a "financial
need" formula determined by the U.S. Congress using
criteria submitted through the Free Application for
Federal Student Aid (FAFSA).
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Meet Senator Pell
• Claiborne Pell (November 22, 1918 – January
1, 2009) was a United States Senator from
Rhode Island, serving six terms from 1961 to
1997, and was best known as the sponsor of
the Pell Grant, which provides financial aid
funding to U.S. college students. A Democrat,
he was that state's longest serving senator.
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Pell Grants
• All other general student eligibility
requirements apply
• For undergraduates and some very
specific post-baccalaureate programs
• Not incarcerated in a federal or state
penal institution
• 2010-2011 maximum award $5,550
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Key Definitions
• Academic year
minimums
– Week of
instructional time
– Program length
• Award year
• Scheduled award
• Annual award
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• Payment period for
term-based programs
– Standard term
– Nonstandard term
• Payment period for
clock-hour and
nonterm credit-hour
programs
• Disbursement
Schedules
Scheduled Award
• The Scheduled Award
– the maximum amount the student can receive
during the award year,
– if student attends full-time for a full academic year
– always taken from the Full-Time payment
schedule, and
– based on the student’s EFC and COA
• Established by the Pell Grant payment schedule
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Annual Award
• The maximum amount a student would
receive during a full academic year for a
given enrollment status, EFC, and COA.
• For Full-time students:
– the annual award = the scheduled award
• For Part-time students:
– The annual award adjusted based on
enrollment status
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Payment Periods
The Academic Year must be divided into payment periods.
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Program Type
The rule
Credit-hour, term based
programs
Term, such as semester, trimester or quarter
Clock hours programs
Defined in clock hours and weeks of
instructions time. A student must complete
the clock hours and weeks of instructional
time to progress to next payment period
For all clock hour programs and
non-term, credit-hour programs
At least two equal payment periods
Program > 1 AY but less
Program with < ____ remaining
Choose the Correct Formula
Formula
General Description
Formula 1 Credit-hour, term-based programs; at least 30
weeks of instruction
Formula 2 Credit-hour, term-based programs; less than 30
weeks of instruction
Formula 3 Credit-hour, term-based programs; standard or
non-standard terms may overlap.
Formula 4 All clock-hour programs and non-term credit-hour
programs
Formula 5 All correspondence-study programs
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Package Pell Grants First
• Pell Grant
– First form of estimated financial
assistance applied against need
– No other aid is considered in
determining Pell eligibility
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Overawards When Package Includes Pell
Important Note
Never adjust a Pell Grant to
eliminate an overaward
Change
Pell
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Determine the Award Amount
• 2010-11 ISIR
•
May 1, 2010
EFC 0*
•
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You have been selected for
verification. Please submit
your income information
promptly to EACH school
you will attend.
Three key Elements:
• Enrollment Status
–
–
–
–
Full-time (12+)
Three-quarters time (9-11)
Half-time (6-8)
Less-than half-time (1-5 )
• Cost of Attendance
• EFC
5 Basic Steps
• Determine the student's enrollment status
• Determine the student's COA
• Determine the student's annual Pell Grant
award
• Determine the payment period
• Determine the payment amount for each
payment period
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Enrollment Status Adjustments
Term-based Credit Hour Programs
• Pell, ACG, and SMART Grants
– Changes within payment period
• School must recalculate if student does
not attend at least one class in all courses
used to determine enrollment status
• School may establish recalculation policy
– Changes between payment periods
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• School must recalculate
Document Payment Eligibility
Review Carefully
• All pushed ISIRS
• Verification
• The ‘C’ codes
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Quick Tips on the ISIR
ISIR Snapshot
Page 3
Considerations.
1. Pushed ISIR Flag
2. Pell Eligibility
Flag
3. Primary vs
Secondary EFC
4. Processed Date vs
ISIR Received
Date
5. The ISIR Guide IFAP
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Maximum Duration of Eligibility
• First-time Pell recipients
– Beginning with 2008-09 and after
– Pell eligibility limited to 18 semesters
– Department equivalent is 9 scheduled awards
– 900% of life-time Pell eligibility
– Students enrolled less than full-time will be
assessed at the fractional enrollment status
– LEU Lifetime Eligibility Used flag
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Two Pells In An Award Year
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 Authorized by the Higher Education Opportunity Act
(HEOA).
 If eligible, student able to receive all or a portion of a
second Scheduled Award within an Award Year.
 Objective is to help needy students accelerate their
academic progress.
 Effective for the 2009-2010 Award Year.
 Implementation by schools is not optional.
 Students eligible for second Scheduled Award in
2009-2010 must be paid.
 Final Regulations Published October 29, 2009.
Two Pells: Student Eligibility
 Second Scheduled Award
 Student otherwise Pell Grant eligible.
 Enrolled at least half-time.
 Received 100% of first Scheduled Award.
 Amounts received will count toward lifetime aggregate limit, if applicable.
 Beginning with 2010-2011 Award Year
student must demonstrate academic year
acceleration.
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Two Pell Grants: Student Eligibility
 No change in way award for payment period is
calculated
 Pell awarding formulas have not changed
 Calculation by payment period based on student’s
Scheduled Award
 Within an Award Year, school continues to pay
eligible student until reaching 200% of Scheduled
Award for the Award Year
– A payment period may include awards from both
first Scheduled Award and second Scheduled
Award.
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Two Pell Grants: Student Eligibility
• Think of it this way:
• A Pell eligible student used to have
one bucket of Pell Grant money per
Award Year. Now they have two.
If Law Had Not Changed - Semester Example
Student may only receive up to ONE Scheduled Award
within an Award Year. Assume student’s 2009-2010
Scheduled Award is $5,350 and will be $5,550 for 20102011.
Fall 2009
$2,675
Spring 2010
$2,675
Summer 2010
$0
100%
2009-10 AY
2009-10 Award Year
Summer 2010
$2,775
Fall 2010
$2,775
Spring 2011
$0
100%
2010-11 AY
2010-11 Award Year
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New Law - Semester Example
Student may receive up to TWO Scheduled Awards within
an Award Year. Assume student’s 2009-2010 Scheduled
Award is $5,350 and will be $5,550 for 2010-2011.
Fall 2009
$2,675
Spring 2010
$2,675
Summer 2010
$2,675
150%
2009-10 AY
2009-10 Award Year
Fall 2010
$2,775
Spring 2011
$2,775
Summer 2011
$2,775
150%
2010-11 AY
2010-11 Award Year
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New Law - Semester Example
Student may receive up to TWO Scheduled Awards.
Student’s Scheduled Award is $5,350 for the Award Year.
Summer 2009
$2,675
Fall 2009
$2,675
Spring 2010
$2,675
2009-10 Award Year
Summer 2010
$2,675
200%
2009-10 AY
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If Law Had Not Changed
Clock Hours – Program Within One Award Year
Student may receive ONE Scheduled Award.
1500 clock hour program AY = 900 hours/26 weeks
Scheduled Award is $5,350 for 2009-2010
450 hours/13 weeks
$2,675
450 hours/13 weeks
$2,675
2009-10 Award Year
300 hours/8 weeks
$0
100%
2009-10 AY
300 hours/8weeks
$0
2009-10 Award Year
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New Law
Clock Hours – Program Within One Award Year
Student may receive up to TWO Scheduled Awards
1500 clock hour program AY = 900 hours/26 weeks
Student’s Scheduled Award is $5,350 for 2009-2010.
450 hours/13 weeks
$2,675
450 hours/13 weeks
$2,675
2009-10 Award Year
300 hours/8 weeks
$1,647
161.6%
2009-10 AY
300 hours/8 weeks
$1,646
2009-10 Award Year
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Resources
• 34 CFR 690
• Federal Student
Handbook
• Two Pell Grant
Webinars
• IFAP.ed.gov
We appreciate your feedback and
comments.
• Cynthia Thornton 214-661-9487
[email protected]
• Trevor Summers 214-661-9468
[email protected]
• Jo-Ann Borel, Supervisor
[email protected]