1. The Federal Pell Grant Cynthia Thornton Trevor Summers Training Officers Dallas Regional Office

2. What’s a Pell Grant? The Pell Grant program is a type of post-secondary, educational federal grant program sponsored by the U.S. Department of Education. It is named after U.S. Senator Claiborne Pell and originally known as the Basic Educational Opportunity Grant program. Grants, which do not require repayment, are awarded based on a "financial need" formula determined by the U.S. Congress using criteria submitted through the Free Application for Federal Student Aid (FAFSA). 2

3. Meet Senator Pell Claiborne Pell (November 22, 1918 – January 1, 2009) was a United States Senator from Rhode Island, serving six terms from 1961 to 1997, and was best known as the sponsor of the Pell Grant, which provides financial aid funding to U.S. college students. A Democrat, he was that state's longest serving senator. 3

4. 4 Pell Grants All other general student eligibility requirements apply For undergraduates and some very specific post-baccalaureate programs Not incarcerated in a federal or state penal institution 2010-2011 maximum award $5,550

5. 5 Key Definitions Academic year minimums –Week of instructional time –Program length Award year Scheduled award Annual award Payment period for term-based programs –Standard term –Nonstandard term Payment period for clock-hour and nonterm credit-hour programs Disbursement Schedules

6. 6 Scheduled Award The Scheduled Award –the maximum amount the student can receive during the award year, –if student attends full-time for a full academic year –always taken from the Full-Time payment schedule, and –based on the student’s EFC and COA Established by the Pell Grant payment schedule

7. 7 Annual Award The maximum amount a student would receive during a full academic year for a given enrollment status, EFC, and COA. For Full-time students: – the annual award = the scheduled award For Part-time students: – The annual award adjusted based on enrollment status

8. Payment Periods Program TypeThe rule Credit-hour, term based programs Term, such as semester, trimester or quarter Clock hours programsDefined in clock hours and weeks of instructions time. A student must complete the clock hours and weeks of instructional time to progress to next payment period For all clock hour programs and non-term, credit-hour programs At least two equal payment periods Program > 1 AY but less Program with < ____ remaining The Academic Year must be divided into payment periods. 8

9. Choose the Correct Formula FormulaGeneral Description Formula 1Credit-hour, term-based programs; at least 30 weeks of instruction Formula 2Credit-hour, term-based programs; less than 30 weeks of instruction Formula 3Credit-hour, term-based programs; standard or non-standard terms may overlap. Formula 4All clock-hour programs and non-term credit-hour programs Formula 5All correspondence-study programs 9

10. 10 Package Pell Grants First Pell Grant –First form of estimated financial assistance applied against need –No other aid is considered in determining Pell eligibility

11. 11 Change Pell Overawards When Package Includes Pell Important Note  Never adjust a Pell Grant to eliminate an overaward

12. Determine the Award Amount 2010-11 ISIR May 1, 2010 EFC 0* You have been selected for verification. Please submit your income information promptly to EACH school you will attend. 2010-11 ISIR May 1, 2010 EFC 0* You have been selected for verification. Please submit your income information promptly to EACH school you will attend. Three key Elements: Enrollment Status –Full-time (12+) –Three-quarters time (9-11) –Half-time (6-8) –Less-than half-time (1-5 ) Cost of Attendance EFC 12

13. 5 Basic Steps Determine the student's enrollment status Determine the student's COA Determine the student's annual Pell Grant award Determine the payment period Determine the payment amount for each payment period 13

14. 14 Enrollment Status Adjustments Term-based Credit Hour Programs Pell, ACG, and SMART Grants –Changes within payment period School must recalculate if student does not attend at least one class in all courses used to determine enrollment status School may establish recalculation policy –Changes between payment periods School must recalculate

15. Document Payment Eligibility Review Carefully All pushed ISIRS Verification The ‘C’ codes 15

16. Quick Tips on the ISIR ISIR Snapshot Page 3 Considerations. 1.Pushed ISIR Flag 2.Pell Eligibility Flag 3.Primary vs Secondary EFC 4.Processed Date vs ISIR Received Date 5.The ISIR Guide - IFAP 16

17. Maximum Duration of Eligibility First-time Pell recipients –Beginning with 2008-09 and after –Pell eligibility limited to 18 semesters –Department equivalent is 9 scheduled awards –900% of life-time Pell eligibility –Students enrolled less than full-time will be assessed at the fractional enrollment status –LEU Lifetime Eligibility Used flag 17

18. Two Pells In An Award Year  Authorized by the Higher Education Opportunity Act (HEOA).  If eligible, student able to receive all or a portion of a second Scheduled Award within an Award Year.  Objective is to help needy students accelerate their academic progress.  Effective for the 2009-2010 Award Year.  Implementation by schools is not optional.  Students eligible for second Scheduled Award in 2009-2010 must be paid.  Final Regulations Published October 29, 2009. 16

19. Two Pells: Student Eligibility  Second Scheduled Award  Student otherwise Pell Grant eligible.  Enrolled at least half-time.  Received 100% of first Scheduled Award.  Amounts received will count toward life- time aggregate limit, if applicable.  Beginning with 2010-2011 Award Year student must demonstrate academic year acceleration. 44

20. Two Pell Grants: Student Eligibility 45  No change in way award for payment period is calculated  Pell awarding formulas have not changed  Calculation by payment period based on student’s Scheduled Award  Within an Award Year, school continues to pay eligible student until reaching 200% of Scheduled Award for the Award Year –A payment period may include awards from both first Scheduled Award and second Scheduled Award.

21. Two Pell Grants: Student Eligibility Think of it this way: A Pell eligible student used to have one bucket of Pell Grant money per Award Year. Now they have two.

22. If Law Had Not Changed - Semester Example Student may only receive up to ONE Scheduled Award within an Award Year. Assume student’s 2009-2010 Scheduled Award is $5,350 and will be $5,550 for 2010- 2011. Spring 2010 $2,675 Summer 2010 $2,775 Fall 2009 $2,675 Fall 2010 $2,775 2009-10 Award Year 2010-11 Award Year Spring 2011 $0 100% 2009-10 AY 100% 2010-11 AY Summer 2010 $0 46

23. New Law - Semester Example Spring 2010 $2,675 Fall 2010 $2,775 Fall 2009 $2,675 Spring 2011 $2,775 2009-10 Award Year 2010-11 Award Year Summer 2011 $2,775 Summer 2010 $2,675 150% 2009-10 AY 150% 2010-11 AY Student may receive up to TWO Scheduled Awards within an Award Year. Assume student’s 2009-2010 Scheduled Award is $5,350 and will be $5,550 for 2010-2011. 47

24. New Law - Semester Example Student may receive up to TWO Scheduled Awards. Student’s Scheduled Award is $5,350 for the Award Year. Fall 2009 $2,675 Summer 2010 $2,675 Summer 2009 $2,675 2009-10 Award Year Spring 2010 $2,675 200% 2009-10 AY 48

25. Student may receive ONE Scheduled Award. 1500 clock hour program AY = 900 hours/26 weeks Scheduled Award is $5,350 for 2009-2010 450 hours/13 weeks $2,675 300 hours/8 weeks $0 450 hours/13 weeks $2,675 300 hours/8weeks $0 2009-10 Award Year 100% 2009-10 AY If Law Had Not Changed Clock Hours – Program Within One Award Year 49

26. Student may receive up to TWO Scheduled Awards 1500 clock hour program AY = 900 hours/26 weeks Student’s Scheduled Award is $5,350 for 2009-2010. 450 hours/13 weeks $2,675 300 hours/8 weeks $1,647 450 hours/13 weeks $2,675 300 hours/8 weeks $1,646 2009-10 Award Year 161.6% 2009-10 AY New Law Clock Hours – Program Within One Award Year 50

27. Resources 34 CFR 690 Federal Student Handbook Two Pell Grant Webinars IFAP.ed.gov

28. We appreciate your feedback and comments. Cynthia Thornton 214-661-9487 Cynthia.Thornton@ed.gov Trevor Summers 214-661-9468 Trevor.Summers@ed.gov Jo-Ann Borel, Supervisor JoAnn.Borel@ed.gov