Pell Grant and Campus Based Programs

1. Pell GrantandCampus Based Programs Erin Porter Assistant Director Scholarships & Financial Aid Texas A&M University

2. Agenda • Federal Pell Grant • Federal Supplemental Educational Opportunity Grant (FSEOG) • Federal College Work-Study (FWS) • Federal Perkins Loan

3. Pell Grant

4. General Pell Eligibility • Undergraduate, prior to earning first Bachelors/Professional degree (includes foreign degrees) • Postbaccalaureate program • the program does not lead to a graduate degree; • the school offering the program does not also offer a bachelor’s degree in education; • the student is pursuing an initial teacher certification or licensing credential within a state; and • consists of the courses required by a state to receive a professional certification or licensing credential necessary for employment as a teacher in an elementary or secondary school in that state • Amount of Pell is linked to EFC, enrollment, and school’s COA • See chart • Student may be eligible for payment at any enrollment status

5. Initial Calculation • An initial calculation is the first calculation of a student’s Federal Pell Grant award. • The institution must use the current, documented enrollment status (may be a projected status). • If no date documented, the date of initial calculation is the later of: • Processed date of the initial SAR or ISIR, or • Date the student enrolls

6. Date of Initial Calculation • Earliest possible date is date of receipt of an EFC from an ED product (assuming Pell Payment Schedule has been issued), such as: • SAR or ISIR with an official EFC (processing date) • FAA Access EFC • FAFSA on the Web EFC • School may choose a later date such as completion of verification

7. Required Recalculation • Enrollment status changes between terms • Student never begins attendance in one or more classes • Lump sum payment according to work completed in prior payment periods • Must use final enrollment status of prior terms with no disbursements • If final enrollment status for the term is different from initial calculation, must recalculate • Include in enrollment status only courses completed (includes earned F’s and incompletes) • Cannot include drops or withdrawals in enrollment status

8. Institutional Options • Recalculations for changes in enrollment status • Recalculates for all changes in enrollment status during the term • Does not recalculate for changes in enrollment status at any time in a term after initial calculation (assumes student has begun all classes) • Does not recalculate after a Pell recalculation date

9. Institutional Options • May have a Pell recalculation date • For term • By course • A student’s ultimate Pell recalculation date for the term is the Pell recalculation date of the last course the student attends or is expected to attend • If a student drops, withdraws from, or adds a class before Pell recalculation date, must recalculate based on any change in enrollment status through that Pell recalculation date

10. Valid SAR/ISIR and New EFC • Receipt of a valid SAR or valid ISIR after an initial calculation with a new EFC requires recalculating a student’s award • Enrollment status used after an initial calculation depends on whether • SAR/ISIR is received in the term, and • A disbursement has been made for a prior term

11. Valid SAR/ISIR and New EFC • No disbursement for a term has been made • If receive a valid SAR or valid ISIR in a term: • must use the effective enrollment status for that term under the institution’s policies for recalculations • If receive a valid SAR or valid ISIR in a subsequent term: • disbursement for a prior term is based on the enrollment for the work completed in the prior term

12. Valid SAR/ISIR and New EFC • Disbursements have been made • If receive a valid SAR or valid ISIR in a term: • must use the effective enrollment status for that term under the institution’s policies for recalculations • If receive a valid SAR or valid ISIR in a subsequent term: • must use the effective enrollment status under the institution’s policies for recalculations for a prior term with a disbursement

13. Zero EFC treatment or Iraq & Afghanistan Service Grant • Zero EFC Treatment • Otherwise Pell eligible • Parent/guardian dies in military service in Iraq or Afghanistan after September 11, 2001 • Use zero EFC for packaging Federal Student Aid • Iraq and Afghanistan Service Grant • Non Pell eligible EFC • Award amount equal to maximum Pell award • Not considered estimated financial assistance for packaging • Cannot exceed COA

14. Concurrent Enrollment • Student may not receive a Pell Grant at two or more schools concurrently • If concurrent enrollment appears to exist (reported enrollment dates within 30 days of each other), COD sends the school that submitted the disbursement a Warning Edit 069 • Concurrent enrollment must be resolved • One school must back out its payment (if actual concurrent enrollment)

15. Potential Overaward Process (POP) • Student may receive only one Scheduled Award in the award year –100% maximum • Two Pells in an Award Year eliminated in 11/12 • POP based upon student receiving no more than one Scheduled Pell Grant award in an award year (100%) • A student may receive disbursements from more than one Attended School in one award year (but not concurrently) • When more than one Attended school reports disbursements for a student, COD checks that more than 100% eligibility has not been used • No single school may pay more than 100% • If the COD system receives disbursement information that student has received more than 100% of Scheduled Award, student is in a POP situation

16. Two Pells in an Award Year • Eliminated for 2011-2012 award year forward • Allowed student to receive 200% of scheduled award in a single award year • AEI should be set to True in COD if receiving second Pell award in previous award year.

17. Resolving POP • COD response to a POP situation is to allow it to exist for 30 days from date MRR is created • Notifies all schools involved that POP situation must be resolved within 30 calendar days • Continues to accept disbursement information • Student will be removed from POP status if: • Downward adjustments bring TEU to 100% or less • School submits maintenance record with AEI set to “true”

18. Unresolved POP • Unresolved POP –more than 30 days • COD reduces all accepted and posted disbursements to $0.00 at all schools • Each school that correctly paid Pell funds must re-report disbursement information to COD • COD does not prevent another POP for same student • During POP, COD School Relations Center is involved • Escalates issue if same schools create another POP

19. Crossover Payment Periods • Payment period that includes June 30 and July 1 --crosses over two award years • May be a term or a nonterm payment period • Pell must be assigned to one award year • Must have valid SAR/ISIR for assigned year • Pell may be awarded with EFC from different award year than other Title IV aid • Must use same EFC, COA, and need for all Title IV programs except Pell • For Pell must use EFC from award year from which student will be paid

20. 2011 Crossover Payment • Comparison of 10/11 and 11/12 award years is not required • Requirement removed by Department of Defense and Full-Year Continuing Appropriations Act 2011 (DCL P-11-02) • Grants flexibility for you to decide from which award year crossover Pell is paid • Decide on individual student basis • Assign crossover period to same award year for all students • Schools cannot disburse both 10/11 and 11/12 Pell to same student in same payment period • Crossover period must be assigned to one award year • Schools cannot establish policy whereby Title IV aid is not paid in crossover payment period

21. Campus Based Programs

22. Campus-Based Programs • Funds managed by the institution • Matching requirements (75/25): waived for Title III/V schools • 25% transfer option from FWS or Perkins to FSEOG • 3-5% Administrative allowance to offset costs • The e-Campus-Based System • Required FISAP reporting • Report previous year’s expenditures • Request funds for the next year • Due no later than October 1st each year

23. Requirements Enrollment • Campus based aid does not require the student to be at half-time • Does not apply to teacher certification or professional credential program Need • All three programs require student to reflect need

24. Federal Supplemental Educational Opportunity Grant • Eligibility • Undergraduate students only • First time bachelor’s degree • Reasonable portions to non-traditional students • Exceptional need • Award in EFC order (start with $0) • PELL recipients given priority

25. FSEOG • FSEOG Awards • $100 annual minimum (can be prorated) • $4000 annual maximum • $4400 annual maximum for approved study abroad programs

26. Federal Work-Study • Eligibility • Financial need • Eligibility for other federal programs • Undergraduate or Graduate • No minimum or maximum award, but school may set • Cannot exceed financial need • Consider hours of employment and wage earned • Periods of non-attendance • Summer • Must enroll for next regular session • Earnings must be counted in next term’s aid package

27. Federal Work-Study • Eligible Employers • On Campus – 75% federal share • Request 100% federal share for Title III/V Schools, Reading and Math Tutors, Civic Education • Government/Non-profit agency – politics and lobbying prohibited – 75% federal share • Private, for-profit agency • Max of 25% of FWS allocation per year • Must be related to major • 50% federal share

28. Federal Work-Study • Eligible Employers – cont • Community Service • 7% of FWS allocation • Health care, child care, education, literacy training, or social services • 75% federal share • No Child Left Behind • Reading tutors of pre-school aged children • 100% federal share

29. Federal Work-Study • Non School Employers • Contract must be drafted, approved and signed before student begins work • Contract should clarify: • Employer • Who will pay student • Who will pay benefits (unemployment, workers comp, etc.)

30. Federal Work-Study • Conditions • Must be paid at least minimum wage • Current- $7.50 • Cannot displace regular employees • Must be paid all hours worked • Cannot be paid for receiving classroom instruction • Must be paid at least once a month • Wages paid to student or can be paid toward student account

31. Federal Work-Study • In the event of a major disaster, an eligible school located in any area affected by such major disaster • Continue to make FWS payments to disaster-affected students, for the period of time (not to exceed one academic year)

32. Federal Work-Study • FWS Overawards • $300 overaward tolerance for all campus-based programs • Tolerance is allowed only if overaward occurred after campus-based aid has been packaged. • Report FWS earnings on the FAFSA • Excludes FWS earnings from wages earned in EFC formula

33. Perkins • Perkins Eligibility • Undergraduate or Graduate students • Limited allocation managed by the school • Exceptional financial need (as defined by school) • Entrance and Exit interviews required

34. Perkins • Perkins Loan Limits • Undergraduate • $5500 annual limit • $27,500 lifetime aggregate • Graduate students • $8000 annual limit • $60,000 lifetime aggregate • $11,000 limit for first 2 years of academic work for any student • Aggregate limits only include unpaid principal • Study Abroad - may exceed the annual and/or aggregate loan limits by up to 20% If the reasonable costs of the foreign study program exceed the cost of attending the home school

35. Perkins • Interest Rate • 0% in school • Fixed, simple 5% out of school • 9-month grace period • 10 year repayment • Deferments, forbearance, and cancellations available

36. Perkins • Perkins Deferments (no interest) • In school • Attending graduate fellowship program • Graduate or post-graduate study outside US (Fulbright scholar) • Rehabilitation training programs for disabled persons • Seeking but unable to find employment (up to 3 years) • Economic hardship (up to 3 years)

37. Perkins • Perkins Forbearance (interest accrues) • Temporary postponement of payments, extension of time for making payments, OR acceptance of smaller payment amounts • Economic hardship or lengthy illness • Request in writing with supporting documentation • Not to exceed 3 years

38. Perkins • Perkins Cancellation • Teaching • Low income school or high need subject matter (math, science, foreign language, special education) • Head Start programs/early intervention child care • Up to 100% • Health care services – up to 100% • Law enforcement – up to 100% • Armed Forces/Peace Corps service • 50% for armed service in hostile area • 70% for Peace Corps service

39. Know your Resources • IFAP- Student Aid Handbook • Vol. 3 Chapter 3 Calculating Pell Grant Awards • Vol. 3 Chapter 7 Awarding Campus-Based Aid • Vol. 6 Managing Campus – Based Programs • Dear Colleague Letters • GEN-11-02 • The eCampus-Based System • https://cbfisap.ed.gov/ecb/CBSWebApp/

40. Questions?