1. 50th Annual NYSFAAA Conference
Pell 101
50th Annual NYSFAAA Conference
Syracuse, New York
October 23, 2018
Perry Brown
The College of Westchester

2. What are we doing here today?
Signs of the times
Introduction to Pell
Student eligibility
Payment formulas
Calculating payments
Processing payments
Eligibility limits
Year round Pell

3. Introduction
Authorized in 1972 as part of the Higher Education Act of 1965.
Originally called Basic Educational
Opportunity Grant (BEOG).
Name change to Pell Grant in
honor of Senator Claiborne Pell in 1980.
Quasi-entitlement program
Eligible student is entitled to the funds whether or not funds remain in the budget
Shortfall in budget could result in prorated awards
First year awarded to first time full time students. By covered all undergraduates to a max of 8 semesters. Then expanded to half-time etc, and semester limits ended.
2011 new awardees lifetime limits imposed.

4. Introduction (continued)
Awards are based on EFC (Expected Family Contribution) and COA (Cost of Attendance).
Requires a valid FAFSA (Free Application for Federal Student Aid) (Received while still enrolled)
The EFC is calculated by the Federal Methodology (FM) needs analysis formula (determined by Congress) and intended for the most needy.
Unlike other federal programs, awards are prorated for quarter-time, half-time, and less than half-time enrollment.
First year awarded to first time full time students. By covered all undergraduates to a max of 8 semesters. Then expanded to half-time etc, and semester limits ended.
2011 new awardees lifetime limits imposed.

5. Introduction (continued)
Maximum Pell Grant for = $6,095
Maximum EFC to qualify for a Pell Grant is 5486
Pell is based on Prior Prior Year income and income tax figures
For the FAFSA, we use 2016 information

6. Student Eligibility Student must:
Meet the eligible student definition for all Title IV programs.
Be enrolled in a program that will lead to a certificate, diploma, or degree at an eligible institution.
Make satisfactory progress to the degree (SAP).
Be an undergraduate who does not have a first bachelor’s degree.
Have a valid and eligible EFC (FAFSA) and remaining lifetime eligibility.
First year awarded to first time full time students. By covered all undergraduates to a max of 8 semesters. Then expanded to half-time etc, and semester limits ended.
2011 new awardees lifetime limits imposed.

7. Five Formulas
Depends on structure, length of student’s program and use of standard (semester, trimester, or quarter) or non-standard terms
Standard term, credit hour program
Standard term, credit hour program < 30 weeks
Any other term based, credit hour program
Clock hour program, or credit hour program without terms
Correspondence program of study
First year awarded to first time full time students. By covered all undergraduates to a max of 8 semesters. Then expanded to half-time etc, and semester limits ended.
2011 new awardees lifetime limits imposed.

8. Five Steps per Formula For students with a Pell eligible EFC:
Determine enrollment status (F/T, H/T, etc.)
Calculate the Federal Pell Grant COA
Determine the scheduled award amount
Determine the payment period
Calculate the payment for a payment period
First year awarded to first time full time students. By covered all undergraduates to a max of 8 semesters. Then expanded to half-time etc, and semester limits ended.
2011 new awardees lifetime limits imposed.

9. Step 1 – Determine Enrollment Status
Must be determined for each payment period (term)
Full-time, quarter-time, half-time, or less than half-time
Undergraduate semester: full-time =12 credits; three quarter 9-11 credits; half time 6-8 credits
A full-time academic year = Credit hours = 24 per year for semester and trimester; 36 for quarters
Full time in clock hours = at least 24 hours per week
Determines components of COA based on credit/clock hours
Determines which payment schedule to use to calculate scheduled or annual award
First year awarded to first time full time students. By covered all undergraduates to a max of 8 semesters. Then expanded to half-time etc, and semester limits ended.
2011 new awardees lifetime limits imposed.

10. Step 2 – Calculating COA
Pell Grant COA is based on costs of a full-time student for a full academic year – even if the student is enrolled for less!
For institutions with standard terms, an academic year equals two semesters, three trimesters, or four quarters.
Less than half-time students: miscellaneous and personal expenses are excluded
Correspondence study: generally, only include tuition and fees
Telecommunications study: cost of rental or purchase of equipment not included
First year awarded to first time full time students. By covered all undergraduates to a max of 8 semesters. Then expanded to half-time etc, and semester limits ended.
2011 new awardees lifetime limits imposed.

11. Step 2 – Calculating COA (continued)
Formula 4: Clock hour or credit hours, non-term
If Period of Enrollment (POE) is < or > statutory definition of an AY, student’s cost must be prorated in order to obtain COA for full AY
2 calculations
Credit/clock hours in AY divided by credit/clock hours to which costs apply
Week of instructional time in AY divided by weeks of instructional time in POE (Period of Enrollment)
*Entire cost is multiplied by the lesser of the two fractions. See example that follows.
First year awarded to first time full time students. By covered all undergraduates to a max of 8 semesters. Then expanded to half-time etc, and semester limits ended.
2011 new awardees lifetime limits imposed.

12. Step 2 – Calculating COA (continued)
Formula 4: Clock hour or credit hours, non-term example
First year awarded to first time full time students. By covered all undergraduates to a max of 8 semesters. Then expanded to half-time etc, and semester limits ended.
2011 new awardees lifetime limits imposed.
*Taken from Federal Student Aid Handbook Vol. 3 Chap 2 (3-42)

13. Step 3 – Determining the Scheduled Award
Scheduled Award is amount of Federal Pell Grant a full-time student may receive for a full academic year.
The student will actually receive less if enrolled less than full-time, i.e. three/quarter- time, half-time, or less than half-time…
Pell Grant Payment Schedules are issued annually by the U.S. Department of Education
Lists EFC (or Pell Grant Index) across top and COA down the side
First year awarded to first time full time students. By covered all undergraduates to a max of 8 semesters. Then expanded to half-time etc, and semester limits ended.
2011 new awardees lifetime limits imposed.

14. Step 4 – Determining the Payment Period
The program’s academic year is divided into payment periods
Determines when Federal Pell Grants are disbursed and exact amount to disburse
For standard term, credit hour programs – payment period is term
Each semester, trimester or quarter
For non-standard programs, school must define, in writing, the payment period in clock or credit hours
Must be at least two equal payment periods for programs one year or less, or at least two equal payment periods each year if program length is greater than one year
First year awarded to first time full time students. By covered all undergraduates to a max of 8 semesters. Then expanded to half-time etc, and semester limits ended.
2011 new awardees lifetime limits imposed.

15. Step 5 – Calculate the Payment
Typically – the total disbursements for all payment periods in an academic year equal the scheduled award, unless:
Enrollment is less than full-time
Student does not attend all terms
Standard terms - annual scheduled award is divided by the number of payment periods
Non-standard programs/terms – only the full-time Payment Schedule is used.
Apply two calculations to determine amount
First year awarded to first time full time students. By covered all undergraduates to a max of 8 semesters. Then expanded to half-time etc, and semester limits ended.
2011 new awardees lifetime limits imposed.

16. Step 5 – Calculate the Payment (continued)
Formula 1: Standard term, credit hour program
Scheduled Award = $6095
Payment period amount for standard semester term = $3048, $ $6095/2
Payment period amount for standard trimester term = $2032, $2032, $ $6095/3
First year awarded to first time full time students. By covered all undergraduates to a max of 8 semesters. Then expanded to half-time etc, and semester limits ended.
2011 new awardees lifetime limits imposed.

17. Step 5 – Calculate the Payment (continued)
Formula 4: Clock hour or credit hour non-term
Scheduled award x lesser of:
Fraction - based on weeks of instructional time
Fraction - based on credit/clock hours
When using fractions, be careful to multiply first, and then divide to avoid an incorrect result.
For example*, the correct way to prorate a $2,150 Scheduled Award for a payment period that is a nonstandard term of 10 weeks of instructional time, for a program that has 30 weeks of instructional time.
First year awarded to first time full time students. By covered all undergraduates to a max of 8 semesters. Then expanded to half-time etc, and semester limits ended.
2011 new awardees lifetime limits imposed.
*Taken from Federal Student Aid Handbook Volume 3 Chapter 3-46

18. Step 5 – Calculate the Payment (continued)
Formula 4: Clock hour or credit hour non-term cont’d.
First year awarded to first time full time students. By covered all undergraduates to a max of 8 semesters. Then expanded to half-time etc, and semester limits ended.
2011 new awardees lifetime limits imposed.

19. Scheduled Award versus Annual Award
Scheduled award = amount for a full year for a full time student
Annual award = the amount student receives based on time status in each payment period and number of payment periods attended. It is often not equal to the scheduled award.

20. Pell Grant Payment
Must have a valid ISIR processed by the CPS while the student was enrolled and eligible.
Deadline extended for students completing verification
Special circumstances
Consortium agreements: between two schools to allow students to attend one school while matriculated at another and receive federal aid
Visiting / exchange student: only the institution where they are enrolled in an eligible program may disburse Pell
Dependency Override / Professional Judgement criteria are the same as for the other Title IV programs
Verification must be completed and corrections processed by CPS before applying PJ adjustments
First year awarded to first time full time students. By covered all undergraduates to a max of 8 semesters. Then expanded to half-time etc, and semester limits ended.
2011 new awardees lifetime limits imposed.

21. Children of Soldiers Who Died During IRAQ/Afghanistan Service
Eligibility:
Student whose parent/guardian died due to Iraq or Afghanistan service
Was less than 24 years of age or was enrolled at that time (Students have a DOD Match Flag = “Y” and date of death on ISIR)
Award:
Pell eligible – Student receives a PELL Grant. The school uses a 0 (zero) EFC.
Not Pell eligible – Student may receive an Iraq & Afghanistan Service Grant (ISAG). The amount is the same as a Pell Grant with a zero EFC.
First year awarded to first time full time students. By covered all undergraduates to a max of 8 semesters. Then expanded to half-time etc, and semester limits ended.
2011 new awardees lifetime limits imposed.

22. Pell Grant Lifetime Eligibility (LEU)
Effective July 1, 2012 for all Pell recipients
Prior to this time Pell Grant was unlimited until the receipt of a Bachelor’s degree
Aggregate limit equal to six years of Pell grant scheduled awards
May receive up to 600% of maximum Pell grant funding, i.e.,
100% for six years, or
Prorated percent for each year if receiving less than full scheduled award
First year awarded to first time full time students. By covered all undergraduates to a max of 8 semesters. Then expanded to half-time etc, and semester limits ended.
2011 new awardees lifetime limits imposed.

23. Pell Grant LEU (continued)
COD is THE system of record for Pell Grants
How do students know their LEU?
As of the award year, students can determine their Pell LEU by:
Additional comments on the SAR consistent with the student’s Pell history at the time of the SAR (pre-screening) & from NSLDS post- screening if the LEU changes (do not refer to MyStudentData Download for LEU)
SAR comments will refer to the equivalent of “school year”
SAR Codes contain new or revised comments
See SAR Comment Codes and Text Guide
First year awarded to first time full time students. By covered all undergraduates to a max of 8 semesters. Then expanded to half-time etc, and semester limits ended.
2011 new awardees lifetime limits imposed.

24. Pell Grant LEU (continued)
COD Transcript can be provided to the student by the institution
Button to “Create Pell LEU Dispute”
Download Excel spreadsheet for student
First year awarded to first time full time students. By covered all undergraduates to a max of 8 semesters. Then expanded to half-time etc, and semester limits ended.
2011 new awardees lifetime limits imposed.

25. Pell Grant LEU (continued)
Calculating eligibility…
Generally:
LEU of 500% or Less: is eligible to receive up to 100%
of the full “Scheduled Award” for the award year, since the student has at least 100% remaining.
600% or More: May not receive additional Pell Grant funds.
>500% and <600%: is not eligible to receive a full “Scheduled Award”, but may receive a partial Pell Grant of the difference between 600% and the student’s LEU
First year awarded to first time full time students. By covered all undergraduates to a max of 8 semesters. Then expanded to half-time etc, and semester limits ended.
2011 new awardees lifetime limits imposed.

26. Pell Grant LEU (continued)
Calculating reduced awards
Scenario 1: Student is full-time in a semester program and has 0 EFC and a $6,095 “Scheduled Award”
Action: Calculate student’s Pell eligibility by subtracting the Pell LEU listed on the Pell LEU Report from %
Report says %
% % = %
65.745% x $6,095 = $4, ($4,007.15) (Do NOT round up)
First semester award = $
Second semester award = $959.65
First year awarded to first time full time students. By covered all undergraduates to a max of 8 semesters. Then expanded to half-time etc, and semester limits ended.
2011 new awardees lifetime limits imposed.

27. Pell Grant LEU (continued)
Calculating reduced awards
Scenario 2: Full-time student in semester program; EFC of 2550 and an LEU of % would be eligible for the remaining 0.499% which is $ ($3,545 scheduled award x 0.499%)
No minimum award for purposes of determining a student’s award because of the 600% LEU limitation
Even a student with a very small remaining LEU is eligible to receive the calculated award amount.
The remaining 0.499% which is $ is truncated to $17.68 or, if necessary, rounded down to $17.00.
*Rounding rules do not apply if rounding would put the student over 600%
First year awarded to first time full time students. By covered all undergraduates to a max of 8 semesters. Then expanded to half-time etc, and semester limits ended.
2011 new awardees lifetime limits imposed.

28. Pell Grant LEU (continued)
Calculating reduced awards
Scenario 3: Student is full-time in a semester program and has a 525 EFC and a $5,545 “Scheduled Award” ($2,772.50/semester)
Action: Calculate student’s Pell eligibility by subtracting the Pell LEU listed on the Pell LEU Report from %
Report states LEU is %
% % = %
33.575% x $5,545 = $1,
First payment period = $1, or $1,861.
Second payment period = $ 0
First year awarded to first time full time students. By covered all undergraduates to a max of 8 semesters. Then expanded to half-time etc, and semester limits ended.
2011 new awardees lifetime limits imposed.

29. Pell Grant LEU (continued)
Calculating reduced awards
Scenario 4: Student is half-time in a semester program and has a 525 EFC and a $5,545 “Scheduled Award” ($2,772.50/semester if full time)
Action: Calculate student’s Pell eligibility by subtracting the Pell LEU listed on the Pell LEU Report from %.
Report lists LEU of %
% % = %
33.575% x $5,545 = $1, (Round down to $1, or $1,861)
First payment period ½ time = $1, or $1,386.00
Second payment period = $ or $475.00
First year awarded to first time full time students. By covered all undergraduates to a max of 8 semesters. Then expanded to half-time etc, and semester limits ended.
2011 new awardees lifetime limits imposed.

30. Year Round Pell
A student may receive up to 150% of the scheduled award in an award year, if attending more than one full academic year within the award year.
Example: School has five terms within an award year, but the academic year is defined as four terms. Student is full time for all five terms in the award year. School would award 25% of the scheduled award in each of the first four terms, and then another 25% of the scheduled award in the fifth term in the award year.

31. Year Round Pell (continued)
Student must be enrolled at least half time in the term in which any additional Pell over the scheduled award is used. In any term in which the student is less than half time, the student can only receive Pell up to what is remaining from the original scheduled award.
If a student uses more than 100% of the scheduled award in the award year, the student’s Pell LEU account will be charged with the actual percentage of the scheduled award used. Therefore, it is possible to use up the 600% Pell LEU limit in less than six years.

32. Questions?? Perry Brown The College of Westchester pbrown@cw.edu
(914)
It’s probably a better idea to me with questions, rather than phoning, as I am often in meetings with students and unable to answer the phone.