Pell LEU

October 9, 2014

Introduction

• Rice University • 6,628 undergraduate, graduate, and professional students • Awarded 645 Federal Pell Grants, 2013-2014 • Approx. $2.8 million in Pell awards • Software System: Banner

Glossary of terms

LEU DOE ISIR SAR COD Scheduled Award Award year Lifetime Eligibility Used Department of Education Institutional Student Aid Record Student Aid Report Common Origination and Disbursement The maximum amount of Federal Pell Grant funding a student can receive for an award year. Period from July 1 of one calendar year to June 30 of the next calendar year.

Pell Lifetime Limit

The Consolidated Appropriations Act, P.L. 112-74 was enacted on December 23, 2011.

• Beginning for 2012-2013 no student can receive more than 600% (12 full time semesters) and students are not grandfathered in.

• Effective for 2013-2014, the ISIR record contains the percentage of LEU for the student. • A message will appear on the SAR through a Comment Code. It will be a range of what they have used.

Comment Codes

• ISIR contains comment code regarding Pell LEU • • • • • Comment codes found on RNIMSxx 346 and 347 create SAR C Codes. 346 student is close to lifetime eligibility (over 500%) 347 student has reached lifetime eligibility (600%) or is over Other comment codes related to PELL LEU exist for students who are under 500% and are displayed on SAR for student. No action is needed by the school since student has full eligibility left for the year. • C Flag is set on RNARSxx • This is what prevents packaging or disbursement. Students with 346 will have PLEUC and students with 347 will have PLEUO on RRAAREQ. (tracking screen)

How Pell LEU is Calculated

Example 1: If the scheduled award for an award year is $5,000, and the student enrolled for only one semester; then, the student receives only $2,500. This is equivalent to 50 percent of the scheduled award for the award year. • Percent used: To determine how much of the 600 percent of Pell Grant has been used each year DOE compares the actual amount received for the award year with the

scheduled award

amount for that award year.

• DOE keeps track of a student’s LEU by adding together the percentages of eligibility used for each award year.

Scheduled Awards

•

Students with an LEU percentage of more than 500% are not eligible for a full award in 2014-2015.

• • •

If the Pell LEU is more than 500 percent, then the financial aid office will need to:

Calculate the first disbursement at the maximum amount allowed.

The second disbursement cannot exceed the remaining eligibility.

How Pell LEU is Calculated

Example 2: Student is full-time in a semester program and has 0 EFC and a $5,730 scheduled award Calculate student’s Pell eligibility by subtracting the Pell LEU from the Pell LEU Report from 600.000% • Report says 534.255% • 600.000% - 534.255% = 65.745% • 65.745% x $5,730 = $3,767.1885 ($3,767.18) • First semester award = $2,865.00

• Second semester award = $902.18 or $902.00 (do not round up)

Pell LEU Processing

The ISIR comment code and C-flag cause RRAAREQ to populate with the LEU requirement.

Pell LEU Processing

Pell LEU Processing

RNASLXX- This student has received 525.009% in lifetime Pell eligibility. Therefore, the system will only award 74.991% in Pell for 2014 – 2015.

RNASLxx lists the Pell LEU and should match COD.

COD Full Pell EU History

Pell LEU Processing

Update RHACOMM with Pell LEU using comment code LEU.

List eligibility used and List remaining eligibility If less than 100%, calculate maximum award and include in comment.

Pell LEU Processing

After origination, the imported file,

crpgXXop.XXX

will have a code 177 or 178 if Pell LEU is near or over the limit.

As before, update RHACOMM with Pell LEU using comment code LEU.

Check for correct Pell calculation.

Where can students see their LEU %?

Students may log onto the National Student Loan Data System to view their Pell lifetime eligibility used. It will be found on the Financial Aid Review page.

http://www.nslds.ed.gov

Q & A

Are students who reached Pell LEU in 2014-2015 eligible for FSEOG?

Students that reach Pell LEU may receive FSEOG in the following circumstances. (FSA HB, p. 3-130)

• A student who receives a Pell Grant at any time in the award year may be awarded an FSEOG for that award year; the student does not have to receive a Pell Grant in the same payment period as the FSEOG.

• If you have remaining FSEOG funds after making awards to all Pell Grant recipients for that award year, you must next select students with the lowest EFCs who are not receiving Pell Grants. This group of students is known as the FSEOG second selection group. This group also includes students who have reached their LEU.

Are Students who Exceeded Pell LEU in 2012-13 still eligible for loans?

Are Students who exceeded Pell LEU still eligible for loans?

Scenario: A student enrolls at our school and the ISIR indicates his Federal Pell Grant LEU is greater than 600% (received C-Code 347). We determine by checking COD that the overpayment occurred at another school in the 2012-2013 award year.

Answer: Student is no longer eligible. Under 34 CFR 668.32(g) of the student eligibility regulations, any student who owes an overpayment on any Title IV grant or loan funds is not eligible for additional Title IV grant or loan funds until the overpayment has been resolved or repaid in full. In this scenario, the student will most likely need to resolve the overpayment directly with the other school in order to receive Title IV aid at our school.

Pell reports from COD, how do you use them? We use our own reports for packaging, and Use the crpgXXop.XXX results to follow up findings.

How do you notify students? We notify them through the Portal when they get 346 or 347. The message stays in the portal.

Message:

The Department of Education limits the total amount of Federal Pell Grants a student may receive to the equivalent of 6 school years (12 full time semester awards). Based on information reported to the National Student Loan Data System (www.nslds.ed.gov) by the school(s) you have attended, your total Pell Grant awards are close to or exceed this limit. This information may be verified at www.nslds.ed.gov. Please contact [email protected] if you have questions.

Challenges

Fall Pell payments create new LEU information. CRPG files includes COD codes on those originations near or over the limit. • We work them all.

COD and NSLDS figures may differ • COD is the information we must use.

C flag causes Pell to back out. • We need to work quickly to avoid sending another origination prior to the correction.

There are timing issues for students that attend summer school at another school.

2013 FSA Training Conference Session 3

• http://fsaconferences.ed.gov/2013sessions.html

2014-2015 FSA Handbook

• • Volume 3, Chapter 3 • Volume 3, Chapter 6

Dear Colleague Letters

2012-09-04 - (GEN-12-18) • 2013-05-16 - (GEN-13-14)

Sources