PELLCalculation of Federal Pell Grant and LEU

VALID INSTITUTIONAL STUDENT INFORMATION RECORD

Federal Pell Grant payments are based on 9-month official expected family contribution (EFC) from valid Institutional Student Information Record (ISIR)

All information used to calculate EFC must be accurate and complete

MAXIMUM ANNUAL AWARDS

Maximum Federal Pell Grant award based in part on annual appropriations legislation

For 2014–15, maximum full-time annual award is $5,730; minimum award is $587

Maximum Pell-eligible EFC for 2014–15 is $5,157

FACTORS INFLUENCING STUDENT’S ACTUAL AWARD AMOUNT

Enrollment status

Cost of attendance (COA)

Payment period length

Program academic year (AY) length

ENROLLMENT STATUS: STANDARD TERM CREDIT-HOUR PROGRAM

Academic year divided into 3 quarters

Quarter provides 11 weeks of instructional time

ENROLLMENT STATUS: STANDARD TERM CREDIT-HOUR PROGRAMS

full-time – 12 credits or more per term

3/4 time – 9 credits to 11 credits per term

1/2 time – 6 credits to 8 credits per term

< 1/2 time – 1 credit to 5 credits per term

ROUNDING RULE

General rule for rounding to nearest dollar:

Round up, if decimal is .50 or higher

Round down, if decimal is less than .50

If student is expected to be enrolled for more than 1 payment period, round up or down in manner that ensures student will not

receive more than Scheduled Award for award year

CROSSOVER PAYMENT PERIOD

Begins before and ends on or after July 1

Must assign entire payment period to one award year

EXAMPLE: SCHEDULED AWARD SAME AT BOTH SCHOOLS

Scheduled Award at both schools = $5,730

At prior school, student received $1,910 for summer quarter and $1,910 for fall quarter

At new school, remaining eligibility is $1,910($5,730 – $3,820 = $1,910)

EXAMPLE: SCHEDULED AWARDS DIFFER

At prior school: $2,880 Scheduled Award; $1,920 payment for fall and winter quarters

At current school: Scheduled Award = $3,480

Percentage of award used at prior school = 55.2% ($1,920/$3,480 = 55.2%)

100% – 55.2% = 44.8% remaining Remaining eligibility at current school:

$1,560 (44.8% x $3,480 = $1,560)

PAYMENTS TO TRANSFER STUDENTS

Transfer students receive same payments as any other student until 100% of remaining eligibility is received

Prior school

Scheduled Award = $3,880

Amount disbursed = $1,940 (Summer Semester School)

PAYMENTS TO TRANSFER STUDENTS

Current School Scheduled Award = $3,880 Remaining eligibility = $1,940 Actual disbursements:

Fall quarter $1,293Winter quarter $ 647Spring quarter $ 0

RECALCULATING FEDERAL PELL GRANT

Schools may establish policy for optional recalculation that provides for:

Recalculating all changes in enrollment status throughout the term;

Recalculating changes that occur up to a specific date; or

No recalculations

PELL LEU - DEFINITIONS

Scheduled Award | 34 CFR 690.63(g)Maximum Pell a student with a given

EFC and COA can receive if enrolled full-time for a full academic year

Annual Award | 34 CFR 690.2Term-based, credit hour programs –

based on enrollment status (full, ¾, ½ or less than ½ )

PELL - LEU

LEU – Lifetime Eligibility Used Reduces the duration of a student’s

eligibility to receive Pell Grant to 12 semesters (600% - 6 full Scheduled Awards)

Applies to all students effective with the

2012-13 award year. Calculation includes all earlier years of

the student’s receipt of Pell NO “grandfather” clause

PELL - LEU

Calculate the equivalency by adding together each of the annual percentages of a student’s scheduled award that was actually disbursed to the student.

Once LEU reaches 600%, student no longer eligible for Pell May impact FSEOG eligibility

If LEU more than 500% but less than 600%, partial eligibility for next award year

PELL – LEU

EA posted on February 17, April 6, June 29 Beginning in July 2012 – NSLDS will display student’s LEU CPS will use comment codes on ISIRs/SARs to

flag students LEU is almost/exceeds 600%. New COD Pell LEU History page

COD is the system of record for LEUs If report a disbursement but do not

disburse or do not disburse in full, MUST adjust (more important now than ever due to the 600% limit) Report adjustments within 30 days (8/13/12 EA)

PELL – LEU

Must check COD

PELL LEU UPDATES - NSLDS

COD calculates Pell LEU for all Pell recipients and sends it to NSLDSNSLDS records updated with the COD LEU

dataDisplays LEU on the Professional Access‐

Grant Page, Student Access Grant Section, and on Transfer Monitoring/FA History files

NSLDS will provide LEU information to the CPS via the prescreening and post‐screening process

COD should be considered the system of record for Pell LEU data

PELL – LEU – ISIR COMMENT CODES

Pell Lifetime Eligibility Used (LEU)— Implementation for 2012-13 on July 1, 2012

New SAR comments will be generated when the Pell Lifetime Limit Comment Code 345 - A student may only receive a Federal

Pell Grant for the equivalent of 12 semesters. Based on information from the National Student Loan Data System (NSLDS), we have determined that you may have received a total amount of Federal Pell Grants that is at least 75% of the cumulative total you can receive. (450% to 499%)

Comment Code 346 - A student may only receive a Federal Pell Grant for the equivalent of 12 semesters. Based on information from the National Student Loan Data System (NSLDS), we have determined that you may have received a total amount of Federal Pell Grants that is close to the cumulative total you can receive. Therefore, your eligibility for additional Pell Grant may be limited. (500% to 600%)

PELL – LEU – ISIR COMMENT CODES Comment Code 347 - A student may only receive a

Federal Pell Grant for the equivalent of 12 semesters. Based on information from the National Student Loan Data System (NSLDS), we have determined that you may have received a total amount of Federal Pell Grants that equals or exceeds the cumulative total you can receive. (600% or above)

Comment Code 348 - Based on information from NSLDS, the total amount of Federal Pell Grants that you have received has changed, which may affect your eligibility for additional Pell Grants.

PELL - LEU

If less than 100% eligibility remaining, handle award like a transfer studentPay up to full amount allowed in first

payment period/termPay remaining balance in subsequent

payment periodsDo NOT spread out percentage evenly

over remaining periodsMay round cents but cannot exceed

600%

PELL – LEU EXAMPLE

Students current LEU 455% Student is enrolled full time for Fall, Winter

& Spring quarters, has a 732 EFC and was awarded $4,980 Pell Grant

Pell disbursed equally between payment periods33.4% disbursed in Fall, 33.3% disbursed

in the Winter, and 33.3% disbursed in Spring

100% of the student’s Pell been disbursed

What is this student’s LEU?

PELL – LEU EXAMPLE - PART 1

Student’s annual Pell award is $4980 (100%) Student’s current LEU is 523.867% of 600% Student has 76.133% LEU remaining Do not round percentages 76.133% of the student’s annual award is

$3791.423

PELL – LEU EXAMPLE - PART 2

Disburse 33.4% of annual award ($4980) 1st term = $1660 (assuming full-time student)

Disburse 33.3% of annual award ($4980) 2nd term = $1660 (assuming full-time student)

Disburse remainder of annual award in 3rd term, up to the remainder of their LEU = $471.42 (9.433%)

DECLINING PELL – GEN 12-18

Students can decline all or part of their Pell Grant awards or return some previously received Pell Grant funds to preserve future Pell Grant eligibility

Student may not return any Pell Grant funds from a prior award year (must take place in same award year)

Student must provide a signed, written statement clearly indicating that they are declining/returning Pell funds for which they are otherwise eligible and that those funds may not be available once the award year is over

School must submit any required adjustment records for the student to the COD System

REFERENCES

IASFAA Fall Conference - November 7‐9, 2012 - David A. Bartlett, Training Officer, U.S. Department of Education Federal Student Aid

Calculation of Federal Pell Grant and Iraq and Afghanistan Service Grant (IASG) Awards – Module 8 – NASFAA Core 2013-14