1. National Association of Student Financial Aid Administrators Presents … © 2015 NASFAA Calculation of Federal Pell Grant and Iraq and Afghanistan Service Grant (IASG) Awards Module 8

2. Slide 8-2 © 2015 NASFAA Valid Institutional Student Information Record Eligibility for a Federal Pell Grant or IASG is based on student’s 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

3. Slide 8-3 © 2015 NASFAA Maximum Annual Awards Maximum Federal Pell Grant award based in part on annual appropriations legislation For 2015–16, maximum full-time annual award is $5,775; minimum award is $588 Maximum Pell-eligible EFC for 2015–16 is 5,198

4. Slide 8-4 © 2015 NASFAA Factors Influencing Student’s Actual Award Amount Enrollment status Cost of attendance (COA) Payment period length Program academic year (AY) length Lifetime Eligibility Used (LEU)

5. Slide 8-5 © 2015 NASFAA Iraq and Afghanistan Service Grant Student does not have Pell-eligible EFC Parent or guardian died as result of U.S. military service in Iraq or Afghanistan after 9/11/01 At time of parent’s or guardian’s death, student was: –Age 23 or younger; or –Enrolled at an institution of higher education

6. Slide 8-6 © 2015 NASFAA Iraq and Afghanistan Service Grant Eligible student identified by database match between Central Processing System (CPS) and Department of Defense (DoD) CPS sends student a personal letter School receives an ISIR containing DoD match flag set to “Y” and date of parent’s or guardian’s death

7. Slide 8-7 © 2015 NASFAA Iraq and Afghanistan Service Grant IASG recipient must meet all Federal Pell Grant eligibility requirements except Pell- eligible EFC and verification Awards calculated using five formulas similar to five Federal Pell Grant formulas

8. Slide 8-8 © 2015 NASFAA Enrollment Status: Standard Term Credit-Hour Programs Academic year divided into 2 semesters or trimesters, or 3 quarters Semester or trimester generally provides 14 to 17 weeks of instructional time Quarter generally provides 10 to 12 weeks of instructional time

9. Slide 8-9 © 2015 NASFAA Enrollment Status: Standard Term Credit-Hour Programs School may set higher standards for full- time enrollment 3/4-time and 1/2-time enrollment may be based on regulatory minimums even though the school defines full-time enrollment as more than 12 credits per term

10. Slide 8-10 © 2015 NASFAA Enrollment Status: Nonstandard Term Credit-Hour Programs Divided into terms, but do not use semesters, trimesters, or quarters; A different credit measure is used for a semester, trimester, or quarter (e.g., award semester hours for quarters); or Full time (FT) is defined as fewer than 12 credits in any term

11. Slide 8-11 © 2015 NASFAA Example: Determining Enrollment Status Nonstandard Term Credit-Hour Programs Program has 4 nonstandard terms per year: –Term #1 = 8 weeks Term #3 = 6 weeks –Term #2 = 6 weeks Term #4 = 8 weeks AY definition = 34 weeks, 28 credits Establish FT status for 8-week terms: 28 credit hours X 8 weeks in term 34 weeks in AY = 6.59 (round up to 7)

12. Slide 8-12 © 2015 NASFAA Example: Determining Enrollment Status Nonstandard Term Credit-Hour Programs Establish FT status for 6-week terms: 28 credit hours X 6 weeks in term 34 weeks in AY = 4.94 (round up to 5)

13. Slide 8-13 © 2015 NASFAA Example: Determining Enrollment Status Nonstandard Term, Less Than Full Time FT = 7 credits for 8-week terms Enrollment status: 5 credits during 8-week term 5/7 is > 1/2 but < 3/4 = 1/2-time enrollment FT = 5 credits for 6-week terms Enrollment status: 4 credits during 6-week term 4/5 is > 3/4 but < 1 = 3/4-time enrollment

14. Slide 8-14 © 2015 NASFAA Nonstandard Terms Within Standard Term Programs Standard term measure of enrollment status may be used if nonstandard term is: –Embedded within a semester, trimester, or quarter; or –Combined with a standard term Enrollment status is determined by adding credit hours in nonstandard term to credit hours in standard term

15. Slide 8-15 © 2015 NASFAA Choosing the Appropriate Formula - Questions Answers to the following questions determine the appropriate formula Is program measured in clock or credit hours? If a credit-hour program, does program have standard terms, nonstandard terms, or no terms?

16. Slide 8-16 © 2015 NASFAA Choosing the Appropriate Formula - Questions If a standard term credit-hour program, does program’s AY include 2 semesters or trimesters, or 3 quarters offered: –In a fall through spring time frame; or –On a periodic basis (e.g., monthly) for different cohorts of students who, throughout their program, remain with the same cohort in which they start unless they withdraw from or skip a term and re-enroll in a subsequent term?

17. Slide 8-17 © 2015 NASFAA Choosing the Appropriate Formula - Questions If a term-based credit-hour program, do any terms overlap? If a credit-hour program, does the academic calendar include at least 30 weeks of instructional time? If a term-based credit-hour program, is full- time enrollment defined as at least 12 credits for each term in the award year? Is the program a correspondence program?

18. Slide 8-18 © 2015 NASFAA 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

19. Slide 8-19 © 2015 NASFAA Crossover Payment Period Begins before and ends on or after July 1 Must assign entire payment period to one award year

20. Slide 8-20 © 2015 NASFAA Example A: Scheduled Award Same at Both Schools Scheduled Award at both schools = $5,775 At prior school, student received $1,925 for summer quarter and $1,925 for fall quarter At new school, remaining eligibility is $1,925 ($5,775 – $3,850 = $1,925)

21. Slide 8-21 © 2015 NASFAA At prior school: $1,800 Scheduled Award; $900 payment for fall semester At new school: $1,200 Scheduled Award Percentage of award used at prior school = 50% ($900/$1,800 = 50%) Remaining eligibility at new school: $600 (50% x $1,200 = $600) Example B: Scheduled Awards Differ

22. Slide 8-22 © 2015 NASFAA At prior school: $2,925 Scheduled Award; $1,960 payment for fall and winter quarters At current school: Scheduled Award = $3,625 Percentage of award used at prior school = 67% ($1,960/$2,925 = 67%) 100% – 67% = 33% remaining Remaining eligibility at current school: $1,196 (33% x $3,625 = $1,196) Example C: Scheduled Awards Differ

23. Slide 8-23 © 2015 NASFAA Transfer students receive same payments as any other student until 100% of remaining eligibility is received Prior school –Scheduled Award = $3,825 –Amount disbursed = $1,913 Summer Payments to Transfer Students

24. Slide 8-24 © 2015 NASFAA Payments to Transfer Students Current School Scheduled Award=$3,825 Remaining eligibility=$1,912 Actual disbursements: Fall quarter$1,275 Winter quarter$ 637 Spring quarter $ 0

25. Slide 8-25 © 2015 NASFAA Recalculating Federal Pell Grant or IASG Award 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

26. Slide 8-26 © 2015 NASFAA