PRASFAA 2009 Fall ConferenceOctober 16, 2009

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Year Round Pell

Raul M. GalvanFederal Student Aid

Special Initiative Services

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Year Round Pell is a Nickname

Old Law A Pell recipient will receive up to ONE scheduled award in an award

year

New Law A Pell recipient will receive up to TWO scheduled awards in an

award year Effective 2009-10 award year funds PRWR2SAAY YRP

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Year Round Pell

• The Statute HEOA• Guidance for 2009-10

– GEN 08-12– Webinars and presentations

• NPRM – PROPOSED!!• Final Regs expected November 1, 2009

– Effective 2010-11

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Year-Round Pell Grant

• Students may receive up to two scheduled Pell Grants during an award year– For receipt of the first scheduled award,

student may be at any enrollment status– For receipt of any money beyond the first

scheduled award, student must be enrolled at least half-time

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Term-Based Calculation BeforeYear-Round Pell Grant

Old Rule: One Scheduled Award per Award YearStudent’s Scheduled Award is $4,000 in both award years

Spring 2010$2,000

Summer 2010$2,000

Fall 2009$2,000

Fall 2010$2,000

2009-10 Award Year

2010-11 Award Year

Spring 2011$0.00

100% 2009-10 AY

100% 2010-11 AY

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Term-Based Year-Round Pell Grant

Spring 2010$2,000

Fall 2010$2,000

Fall 2009$2,000

Spring 2011$2,000

2009-10 Award Year

2010-11 Award Year

Summer 2011$2,000

Summer 2010$2,000

150% 2009-10 AY

150% 2010-11 AY

New Rule: Up to Two Scheduled Awards per Award YearStudent’s Scheduled Award is $4,000 in both award years

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Term-Based Year-Round Pell Grant

New Rule: Up to Two Scheduled Awards per Award YearStudent’s Scheduled Award is $4,000 for the award year

Fall 2009$2,000

Summer 2010$2,000

Summer 2009$2,000

2009-10 Award Year

Spring 2010$2,000

200% 2009-10 AY

One Scheduled Award Per Award Year

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One Scheduled Award’s Funds Spent on Academic Year

One Scheduled Award’s Funds Available for Award Year

Academic Year

Award Year

Two Scheduled Awards Per Award Year

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1st Scheduled Award’s Funds Spent on AY Year

Academic Year

Two Scheduled Awards’ Funds Available for Award Year

Award Year

2nd Scheduled Award’s Funds available when 1st is spent

Academic Year

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Two Scheduled Awards Per Award Year

• Crossover payment periods will still exist– Starts in one award year and ends in the next

• Pell funds are linked to an award year– G5 must know what year’s funds are being drawn

down• Student must be eligible for that year’s funds

– Pell eligible ISIR

Effective July 1, 2009

Year-Round Pell Grant

• Effective with the 2009-2010 award year– 09/10 maximum scheduled award is $5,350– For receipt of the first scheduled award,

student may be at any enrollment status– For receipt of money from the second

scheduled award, student must be enrolled at least half-time

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Year-Round Pell Grant

• Schools will continue to calculate the payment using scheduled award for award year – Not two scheduled awards

• Schools will be able to pay a student up to a maximum of 200% of the scheduled award for the award year

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Year-Round PellSummer 2009 Implementation

• Summer 2009 is cross-over term if it includes both 6/30/09 & 7/01/09

• School has option:– Use 2008-2009 funds

• Pay using student’s remaining 08/09 scheduled awardOR• Not pay because student has no 08/09 scheduled award

remaining OR

– Use 2009-2010 funds• Pay using student’s 09/10 scheduled award

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Year-Round PellSummer Mini-Sessions

• Standard term programs using Pell formula 1 or 2 count the summer term as a standard term– May consist of mini-summer terms/sessions which are

combined and handled like a standard term– Full-time for the combined summer terms/sessions must

be defined as 12 credits– Length of summer terms/sessions does not matter

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Year-Round PellSummer Mini-Sessions

• School with standard terms has 4 summer mini-sessions • Session I: May 4 – June 5• Session II: May 18 - June 19• Session III: June 8 – July 10• Session IV: July 6 – Aug 7

• School combines all 4 sessions into one 14 week summer term (May 4 – Aug 7)

• Summer is a crossover payment period• Students may take courses in any session and still are

enrolled in the combined summer term 16

Year-Round PellSummer Mini-Sessions

• Student A enrolls only in Sessions I and II• May 4 – June 19

• Student B enrolls only in Sessions III and IV• June 8 - August 7

• Student C enrolls only in Session IV• All are considered to be enrolled in combined term that

starts May 4 and ends August 7 • Assuming valid ISIR for both 08/09 and 09/10, may

be paid Pell from either award year

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May 18 toJune 19

May 4 to Jun 5

Student A: Attends only Sessions I and II

July 6 toAug 7

June 8 to July 1

All mini-sessions combined as one standard term

Student B: Attends only Sessions III and IV

08-09 award yearJuly 1, 2009 09-10 award year

All mini-sessions combined as one standard term

July 6 toAug 7

All mini-sessions combined as one standard term

Student C: Attends only Session IV

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Year-Round PellSummer Mini-Sessions

• Nonstandard term programs using Pell formula 3– Do not combine mini-summer

terms/modules– Full-time for the mini-summer

terms/modules is not defined as 12 credits– Length of summer terms/modules does

matter for determining amount of Pell

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May 18 toJune 19

May 4 to Jun 5

Student A: Attends only Sessions I and II

July 6 toAug 7

June 8 to July 1

All mini-sessions combined as one standard term

Student B: Attends only Sessions III and IV

08-09 award yearJuly 1, 2009 09-10 award year

All mini-sessions combined as one standard term

July 6 toAug 7

All mini-sessions combined as one standard term

Student C: Attends only Sessions IV

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COD and Year-Round Pell

• New field added to COD record– Additional Eligibility Indicator (AEI)

• School sets AEI to “true” on origination record when awarding any part of second scheduled award

• AEI student will not trigger POP MRR but will trigger concurrent enrollment MRR

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Proposed Regulations for 2010-11

• NPRM published August 21, 2009• Comment period has closed• Final will be published on or about

November 1, 2009

NPRM - Year Round Pell

• To receive a second scheduled award, student must– Successfully complete credit or clock hours

of the first academic year in the award year– Enroll in an eligible program leading to a

bachelor’s or associate degree or other recognized educational credential

– Enroll at least as a half-time student

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NPRM - Year Round Pell

• School may waive requirement to complete hours of the academic year – Must be due to circumstances beyond the

student’s control– Must be determined and documented on

individual basis– May include circumstances such as illness or

classes not offered• Does not include withdrawing to avoid a grade or

failing to register for offered class

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NPRM - Year Round Pell: Transfers

• Assume completed first academic year if received all of first Scheduled Award at prior institution– If less than first Scheduled Award was

received, assumption that student completed the same ratio of the academic year as the % of Pell received

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NPRM - Year Round Pell: Crossovers

• Full-time or three-quarter-time– Must assign a crossover payment period to

award year in which student receives greater payment at time payment is initially calculated

– Must reassign if subsequent information shows greater payment would result

• Half-time or less– May assign to either year

• Must assign if student requests to maximize benefits over 2 award years

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NPRM - Year Round Pell: Payment from Second Award

• Payment for payment period is greater than balance of first Scheduled award

• Payment is remaining amount of first Scheduled Award plus an amount from second Scheduled Award for the balance of the payment

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Other Pell Issues

Not Related to YRP

Effective This Year or Earlier

Maximum Duration of Eligibility

• Limits Pell eligibility to 18 semesters – Department equivalent is 9 scheduled awards

• Applies only to students who are first-time Pell recipients in the 2008-2009 award year or after – Students enrolled less than full-time will be

assessed at the fractional enrollment status•

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Maximum Duration of Eligibility

• COD will track student usage– Percentage used available in COD and NSLDS

beginning July 2009 and will appear on the ISIR beginning in 2010-2011

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Maximum Duration of Eligibility

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Fall 2009TQT

Fall 2010HT

Summer 2014FT

Fall 2014FT

Spring 2015FT

Fall 2008FT

Spring 2009FT

Spring 2010TQT

Summer 2010TQT

Student’s Pell disbursements based

Percentage Used on enrollment status per payment period

787.5%

= 100%

Summer 2011HT

Fall 2011HT

Fall 2015FT

Summer 2015FT 200%

Spring 2016FT

Summer 2016FT

Fall 2016FT

112.5%

75%

150%

Spring 2017FT

Summer 2017FT 150%

=

=

=

=

=

2008-09

2009-10

2014-15

2010-11

2015-16

2016-17

Maximum Pell Eligibility For Dependents of Military Personnel Killed in Iraq/Afghanistan

• Effective 2009-2010 only for those who have Pell eligible EFC on processed FAFSA

• Match with Defense in progress– Until match in place

• patricia.lyles@ed.gov• New field added to COD website

– Post 9-11 Deceased Veteran Dependent Indicator

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Contact Info• Raul Galvan• Special Initiative Services• United States Department of Education• Federal Student Aid• Dallas Regional Office• 214 661 9455• raul.galvan@ed.gov