pell leus tracking and enforcing new limits

Pell LEUs Tracking and Enforcing New Limits

Presented by: Sheryl Ross-Mahoney, USA Funds

Jenny Stephens, Indiana UniversityWith input, support and inspiration from Sue Allmon, WGU

ISFAA Winter Conference, December 2012 2

Federal Pell Grants - A Brief History

Today’s Federal Pell Grant Program came into being as the Educational Opportunity Grant in 1965.


Federal Pell Grants - A Brief History

Today’s Federal Pell Grant Program came into being as the Educational Opportunity Grant in 1965.

In 1972, it was renamed the Basic Educational Opportunity Grant with a maximum award of $452.


Federal Pell Grants - A Brief History Today’s Federal Pell Grant Program came into

being as the Educational Opportunity Grant in 1965.

In 1972, it was renamed the Basic Educational Opportunity Grant with a maximum award of $452.

1980 Reauthorization of the Higher Education Act - BEOG was renamed Pell Grant after Senator Claiborne Pell of Rhode Island.


HEOA & Pell Grant LimitsThe HEOA, enacted on August 2008, made two major changes in the Federal Pell Grant Program:


HEOA & Pell Grant Limits

1) Limits Pell Grants to up to 18 semesters or its equivalent for students who first receive a Pell Grant on or after July 1, 2008

2) Allowed for ‘Year Round Pell’ capped at 200% of scheduled award


In April 2011…The Department of Defense and Full-Year Continuing Appropriations Act repealed the provision for a 2nd Pell Grant Scheduled Award

Effective for 2011-12 aid year


In December, 2011…Congress passed an omnibus spending bill for fiscal year (FY) 2012 with a new limit of 12 full-time semesters with no provision for prior recipients

Effective for 2012-13 aid year


Lifetime Eligibility Used (LEU)April 2012 – DOE began sending weekly reports to schools identifying 2012-13 FAFSA applicants who had received more than 450% of their lifetime limit.

The Pell data on these reports only went back to 1993-94.


Lifetime Eligibility Used (LEU)June 2012 - Pell records prior to 1993-94 were accessed, increasing the number of students affected.

~100,000 students are expected to be impacted for 2012-13


Using the LEU DataMake more accurate awards if LEU

> 500%:

At Western Governors, students on the report are flagged and excluded from auto-packaging, then awarded manually

At Indiana University, student records are updated with a ‘derived’ annual amount used (100 minus LEU% in excess of 500) so mass packaging will limit the award for 12-13


Think ‘Mid-year transfer!’Converting the LEU to an annual amount used (600 –

LEU) tells you what the student has left for the year.

Example: LEU = 525%75% is still available for the year

25% is considered ‘used’ for the year

Do not split remaining eligibility across terms. Award full eligibility each term until it is gone.


Tracking Changing LEUsAs 2012 Summer awards were reported,

new students appeared on reports, and previously reported LEUs changed

IU wrote a report to check current Pell awards against updated LEUs

As Fall 2012 awards were added to reports, this became more complicated to track


COD - ‘System of Record’ for PellJuly 2012 changes in COD:

Pell LEU% is available in COD and reported for ALL students in Pell response files

Warning Edits were added to origination and disbursement response files

• 177 – near the limit• 178 – exceeds limit

LEU data added to MRR, reconciliation and YTD files


2013-14 ChangesPell LEU% reported for ALL students

on ISIR

NSLDS will display obvious ‘warning icons’ for students close to, or at / over the limit

COD Pell LEU History Page is coming


Appealing Inaccurate DataA student who thinks the Pell LEU is

wrong should work with his schoolThe school works as an advocate for

the studentObtain and review the COD history

with the studentSchool will be told how to escalate

review with FSA (See FSA presentation)


OverpaymentsThere is NO hard reject edit for disbursements to students at or over the limit – school must research all 178 warning edits

Compliance will be monitored via audits and program reviews

New edits are planned for 2014-15


Liability for OverpaymentsThe school may be liable if it had

accurate LEU data available at disbursement

The student is ultimately liable for any overpayment

There is no room for rounding – over is over


Timely Reporting: GEN 12-01An institution must submit Pell Grant disbursement data to COD no later than 30 days after any disbursement or adjustment.

Failure to meet this requirement could result in ED disallowing the disbursement.


Timely Reporting

ED is considering reducing the 30-day window in the future to facilitate managing Pell limits


Declining a Pell Grant?A student with a high EFC who will get only a small grant may want to decline to use Pell, saving eligibility for a year in which the award might be higher.


Declining a Pell Grant: GEN 12-18 A student may decline all or part of a Pell Grant during the award year with a signed, written statement:Clearly indicating his intent to decline or return funds, and

Acknowledging that funds may not be available at a later date.


Communication with StudentsED sent email messages from April 16 to July 1 to students at or near the limit

Starting in July, SAR comment codes were added to alert applicants at or near the limit


Communication with StudentsAt Western Governors, the ‘call team’

contacted students at 450% or more by email and phone to inform and discuss options

At Indiana University, a report was developed to identify students > 500% with their summer and fall enrollment status, level and remaining loan eligibility to enable targeted outreach


Communication with StudentsWhat are you doing?


Helping Affected StudentsWhat are you doing?


Communicating Limits toALL Students

How are you altering your message to new and returning students, not yet affected by the limits?


QUESTIONS?


RESOURCESFSA Presentation – Pell Grant Program Update (PPTX) at:http://ifap.ed.gov/presentations/2012FSAConference.html

Contact: Sheryl Mahoney, USA Funds

[email protected] Stephens, Indiana [email protected]

http://ifap.ed.gov/presentations/2012FSAConference.html




pell leus tracking and enforcing new limits

Documents

pell records

pell data

pell leus pell leus

year round pell

wgufederal pell grants

heoa pell grant limitsthe

maximum award

new students