1. Presented by: Sheryl Ross-Mahoney, USA Funds Jenny Stephens, Indiana University With input, support and inspiration from Sue Allmon, WGU

2. Federal Pell Grants - A Brief History Today’s Federal Pell Grant Program came into being as the Educational Opportunity Grant in 1965. ISFAA Winter Conference, December 20122

3. 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. ISFAA Winter Conference, December 20123

4. 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. ISFAA Winter Conference, December 20124

5. HEOA & Pell Grant Limits The HEOA, enacted on August 2008, made two major changes in the Federal Pell Grant Program: ISFAA Winter Conference, December 20125

6. 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 ISFAA Winter Conference, December 20126

7. In April 2011… The Department of Defense and Full- Year Continuing Appropriations Act repealed the provision for a 2nd Pell Grant Scheduled Award Effective for 2011-12 aid year ISFAA Winter Conference, December 20127

8. 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 ISFAA Winter Conference, December 20128

9. 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. ISFAA Winter Conference, December 20129

10. 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 ISFAA Winter Conference, December 201210

11. Using the LEU Data Make 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 ISFAA Winter Conference, December 201211

12. 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. ISFAA Winter Conference, December 201212

13. Tracking Changing LEUs As 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 ISFAA Winter Conference, December 201213

14. COD - ‘System of Record’ for Pell July 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 ISFAA Winter Conference, December 201214

15. 2013-14 Changes Pell 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 ISFAA Winter Conference, December 201215

16. Appealing Inaccurate Data A student who thinks the Pell LEU is wrong should work with his school The school works as an advocate for the student Obtain and review the COD history with the student School will be told how to escalate review with FSA (See FSA presentation) ISFAA Winter Conference, December 201216

17. Overpayments There 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 ISFAA Winter Conference, December 201217

18. Liability for Overpayments The 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 ISFAA Winter Conference, December 201218

19. Timely Reporting: GEN 12-01 An 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. ISFAA Winter Conference, December 201219

20. Timely Reporting ED is considering reducing the 30-day window in the future to facilitate managing Pell limits ISFAA Winter Conference, December 201220

21. 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. ISFAA Winter Conference, December 201221

22. 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. ISFAA Winter Conference, December 201222

23. Communication with Students ED 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 ISFAA Winter Conference, December 201223

24. Communication with Students At 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 ISFAA Winter Conference, December 201224

25. Communication with Students What are you doing? ISFAA Winter Conference, December 201225

26. Helping Affected Students What are you doing? ISFAA Winter Conference, December 201226

27. Communicating Limits to ALL Students How are you altering your message to new and returning students, not yet affected by the limits? ISFAA Winter Conference, December 201227

28. QUESTIONS? ISFAA Winter Conference, December 201228

29. RESOURCES FSA Presentation – Pell Grant Program Update (PPTX) at: http://ifap.ed.gov/presentations/2012FSA Conference.html Contact: Sheryl Mahoney, USA Funds Sheryl.Mahoney@usafunds.org Jenny Stephens, Indiana University stephejl@indiana.edu ISFAA Winter Conference, December 201229