4 Using a part of the 2nd Scheduled Award Can begin paying from second award in a payment period while paying the balance of first award if student qualifies for second awardIn the Spring semester, the student will use the last ¼ of the first scheduled award and begin receiving payment from the 2nd as part of the entire full-time award.Summer 2010 ¾ time (9 hr)$1,500Fall 2010Full-time (12 hr) $2,000Award Year/ EFC of 1588Spring 2011
5 Using Two Pells in an Award Year Summer 2010 Full-time (12 hr)$2,000Fall 2010Full-time (12 hr) $2,000Award YearSpring 2011Summer 2011 Full-time (12 hr)$2,000$4,000 Scheduled Award forAt the end of Fall, student earned 24 hours & is enrolled in 12 for the Spring; thus, meeting the 25 credit hour mark.In Spring, student receives payment from second Scheduled Award as long as student is ½ timeStudent receives last $2,000 from 2nd scheduled award in Summer 2011.
6 No Additional from 2nd Scheduled Award Summer 2010 Full-time (12 hr)$2,000Fall 2010Full-time (12 hr) $2,000Award YearSpring 2011Less than half-time (3 hr) $0$4,000 Scheduled Award forAt end of Fall, student earned (24) credit hours & will be taking 3 credit hours in the Spring; thus meeting the 25 credit hour mark…However, student receives no payment due to less than half-time enrollment
7 YRP & Cross Over Payments Must assign cross-over payment period (summer) to the award year in which the student receives the greater payment.~ you must compare EFC’s to get the studenttheir maximum Pell award for the cross-overperiodSchools were required to compare 0910 & 1011 EFC’s for the cross over payment period until the 9/10/10 deadline for unless they paid Summer 2010 out of 0910 and had an established policy in place stating just that prior to July 1st, 2010.
8 Crossover payment period - 2010 Three Different Institutional options:– Prior to July 1, 2010, a written policy had to be in place stating the student’s payment resides in and school will not apply these YRP regulations . This would have meant that all Summer 10 Pell would have been paid out of with no comparison to 1011 EFC and no monitoring of acceleration, i.e. monitoring of the 25 total hours during 0910.– If awarding Summer Pell from 1011 award year, YRP rules apply. This means Sum’10 Pell award must be compared to 0910 Pell award. However, if school had policy in place prior to July 1st, acceleration rule is optional for this year only.- If no policy in place, regulations apply and that means that you must compare EFC’s for the cross-over term.
9 New Regs for Cross-Over Term Effective in aid year, one can assume EFC is higher if –- No FAFSA.- Rejected ISIR with no EFC.ISIR selected for verification butverification still not completed.For example, student enrolled during Summer 10 eligible for Pell award, no 1011 official EFC by 9/10/10 deadline, we awarded/paid Summer 10 Crossover Pell out of
10 YRP & Cross Over Payment example Summer term assigned as trailer for the award year with no policy in placeInstitution must pay Summer 2010 Pell from the EFC that provides the student the greatest benefit.Use FASFA/EFC for Pell since 1011 EFC provides the student the greater Pell Award.Use FAFSA/EFC for packaging all other aid during Summer 2010 in this example the summer term is the trailer.
11 YRP & Cross Over Payment Concerns Raises packaging issuesMust use same EFC, COA and need for all programs except PellFor Pell, use EFC for the award year from which the student will be paid that warrants the higher award amount.
12 Important NotesMust pay eligible students (school must ‘find’ Pell eligible students enrolled in summer coursework and get them the funding)Must implement regardless of software capabilities, even if requires manual interventions such as may be necessary for crossover payment periods as per Fred Sellers from DE.You may pay summer student Pell funds and then the student is selected for verification, thus changing the EFC, which may result in a re-deposit of all or partial funds and a new origination out of the previous year
13 Example 1:- Summer 2010, 9 credit hour enrollment,- Aid year 1011 EFC=0- Aid year 0910 EFC = 2696School pays student summer Pell of $2082 for Summer out of 1011 award year in late July.- Student makes correction to FAFSA in late August and gets selected for verification- Due to verification 1011 EFC increase to 851- School must do a re-deposit of $319 since now the student is only eligible for $1763 in summer
14 Example 2:- Summer 2010, 9 credit hour enrollment,- Aid year 1011 EFC=0- Aid year 0910 EFC = 2696School pays student summer Pell of $2082 for Summer out of 1011 award year in late July.- Student makes correction to FAFSA in late August and gets selected for verification- Due to verification 1011 EFC increase to 6000- School must do a re-deposit of 1011 Pell since now the student is only eligible for Pell in 0910 award year
15 Implications Satisfactory Academic Progress – Example, upon SAP review at the end of Spring 2010, Student A lost all Federal aid for the Fall 2010 semester. In searching for all Pell eligible students who are enrolled in summer coursework, we found Student A who earned 6 hours.Use Summer as the ‘penalty’ semester where student pays for coursework and now Student A gets aid reinstated for the Fall 2010 semester.