Formula 1 Summary
Standardterm, credithour programs, including subscriptionbased programs, with 30 weeks of instructional time (or waiver applies). For a program with a traditional academic calendar, the program:

must have an academic calendar that consists, in the fall through spring, of two semesters or trimesters, or three quarters (note that summer may not be a standard term);

must have at least 30 weeks of instructional time in fall through spring terms;

must not have overlapping terms; and

must define fulltime enrollment for each term in the award year as at least 12 credit hours and must measure progress in credit hours.
Other programs offered in standard terms may use Formula 1 if they start the terms for different cohorts of students on a periodic basis (for example, monthly). These programs:

must have an academic calendar that consists exclusively of semesters, trimesters, or quarters;

must have at least 30 weeks of instructional time in any two semesters or trimesters or any three quarters;

must start the terms for different cohorts of students on a periodic basis (for example, monthly);

must not allow students to be enrolled in overlapping terms and the students must stay with the cohort in which they start unless they withdraw from a term (or skip a term) and reenroll in a subsequent term; and

must define fulltime enrollment for each term in the award year as at least 12 credit hours and must measure progress in credit hours.
Step 1: Determine Enrollment Status
Fulltime, threequartertime, halftime, or lessthanhalftime.
Step 2: Calculate Pell COA
Fulltime, full academic year costs.
Step 3: Determine Annual Award
If the student’s enrollment status is full time, the annual award is taken from the fulltime payment schedule (Scheduled Award). If the student’s enrollment status is three quarter time, half time, or less than half time, the annual award is taken from the appropriate parttime disbursement schedule.
Step 4: Determine Payment Periods
Payment period is the academic term.
Step 5: Calculate Payment for a Payment Period
Annual Award ÷ 2 for programs with semesters or trimesters or 3 for programs with quarters
OR
For alternate calculation:
Annual Award ÷ Number of terms in the award year
Formula 2 Summary
Standardterm, credithour programs, including subscriptionbased programs, with fewer than 30 weeks of instructional time, and waiver does not apply.

Enrollment for at least 12 credit hours each term required for fulltime status

Program terms don’t overlap

Academic calendar includes two semesters/trimesters (fall and spring) or three quarters (fall, winter, and spring)

Fall through spring terms are less than 30 weeks of instructional time
Step 1: Determine Enrollment Status
Fulltime, threequartertime, halftime, or lessthanhalftime
Step 2: Calculate Pell COA
Fulltime, full academic year costs.
Cost for fall through spring terms prorated. If fall through spring terms provide the same number of credit hours as are in the academic year definition, prorated COA is the same as nonprorated COA.
Step 3: Determine Annual Award
If the student’s enrollment status is full time, the annual award is taken from the fulltime payment schedule (Scheduled Award). If the student’s enrollment status is three quarter time, half time, or less than half time, the annual award is taken from the appropriate parttime disbursement schedule.
Step 4: Determine Payment Periods
Payment period is the academic term.
Step 5: Calculate Payment for a Payment Period
Annual award × (Weeks of instructional time in fall through spring terms ÷ Weeks of instructional time in program's academic year definition) ÷ 2 (if semesters or trimesters) OR 3 (if quarters)
OR
For alternate calculation:
Annual Award ÷ Number of terms in the award year
Formula 3 Summary
Any termbased, credithour program, including subscriptionbased programs; may include programs that qualify for Formulas 1 and 2.
Step 1: Determine Enrollment Status
Fulltime, threequarter time, halftime, or lessthanhalftime.
Step 2: Calculate Pell COA
Fulltime, full academic year costs.
Cost for program or period not equal to academic year prorated. Two fractions are compared:
Hours in program’s definition of academic year ÷ Hours to which the costs apply
Weeks of instructional time in program’s definition of academic year ÷ Weeks of instructional time in the enrollment period to which the costs apply
The entire cost is multiplied by the lesser of the two fractions to determine Pell COA.
Step 3: Determine Annual Award
If the student’s enrollment status is full time, the annual award is taken from the fulltime payment schedule (Scheduled Award). If the student’s enrollment status is three quarter time, half time, or less than half time, the annual award is taken from the appropriate parttime disbursement schedule.
Step 4: Determine Payment Periods
Payment period is the academic term.
Step 5: Calculate Payment for a Payment Period
Annual award x (Weeks of instructional time in the term ÷ Weeks of instructional time in the program’s academic year definition)
Note: A single disbursement can’t exceed 50% of the annual award.
Formula 4 Summary
Clockhour programs and credithour programs without terms, residential portion of nonterm correspondence programs.
Step 1: Determine Enrollment Status
At least halftime or lessthanhalftime.
Step 2: Calculate Pell COA
Fulltime, full academic year costs.
Cost for program or period not equal to academic year prorated. Two fractions compared:
Hours in program’s definition of academic year ÷ Hours to which the costs apply
Weeks of instructional time in program’s definition of academic year ÷ Weeks of instructional time in the enrollment period to which the costs apply
The entire cost is multiplied by the lesser of the two fractions to determine Pell COA.
Step 3: Determine Annual Award
Always taken from fulltime payment schedule (equal to Scheduled Award). Does not mean students are always considered fulltime.
Step 4: Determine Payment Periods
Length of payment period measured in credit or clock hours. Minimum of two equal payment periods required for programs shorter than an academic year, or two equal payment periods in each full academic year (or final portion longer than half an academic year) for programs longer than or equal to an academic year.
Step 5: Calculate Payment for a Payment Period
Annual award multiplied by the lesser of:
The number of credit or clock hours in the payment period ÷ The number of credit or clock hours in the program’s academic year
OR
The number of weeks of instructional time in the payment period ÷ The number of weeks of instructional time in the program’s academic year
Note: A single disbursement can’t exceed 50% of the annual award.
Formula 5A Summary
Correspondence programs nonterm correspondence component. For residential portion, use Formula 4 to calculate payment periods and amounts. The schedule for the submission of lessons must reflect a workload of at least 12 hours of preparation per week of instructional time.
Step 1: Determine Enrollment Status
Enrollment status is never more than half time.
Step 2: Calculate Pell COA
Fulltime, full academic year costs (for applicable components).
Cost for program or enrollment period not equal to academic year prorated according to the following formula for tuition and fees:
Costs × (Credit hours in program’s definition of academic year ÷ Credit hours to which costs apply)
Step 3: Determine Annual Award
Annual award taken from halftime disbursement schedule
Step 4: Determine Payment Periods
Length of payment period measured in credit hours.
The first payment period is the period of time in which the student completes the lesser of the first half of the academic year or the first half of the program. (First payment can be made only after the student has completed 25% of the lessons or otherwise completed 25% of the work scheduled, whichever comes last.)
The second payment period is the period of time in which the student completes the lesser of the second half of the academic year or the second half of the program. (Second payment may be made only after the student has submitted 75% of the lessons or otherwise completed 75% of the work scheduled, whichever comes last.)
Step 5: Calculate Payment for a Payment Period
Annual award is multiplied by the lesser of:
Number of credit hours in the payment period ÷ Number of credit hours in the program’s academic year
OR
Weeks of instructional time in the payment period ÷ Weeks of instructional time in the program’s academic year
Note: A single disbursement can’t exceed 50% of the annual award.
Formula 5B Summary
Programs of study by correspondence, term correspondence component. During each term, the written schedule for the submission of lessons must reflect a workload of at least 30 hours of preparation per semester hour or at least 20 hours of preparation per quarter hour.
Step 1: Determine Enrollment Status
Enrollment status is never more than half time.
Step 2: Calculate Pell COA
Fulltime, full academic year costs (for applicable components).
Cost for program or enrollment period not equal to academic year prorated according to the following formula for tuition and fees:
Cost × (Credit hours in program’s definition of academic year ÷ Credit hours to which costs apply)
Step 3: Determine Annual Award
Annual award taken from halftime or lessthanhalftime disbursement schedule.
Step 4: Determine Payment Periods
Length of payment period is the academic term.
Step 5: Calculate Payment for a Payment Period
Annual award multiplied by:
Weeks of instructional time in the term ÷ Weeks of instructional time in program’s academic year definition
When there is a residential portion in a termbased correspondence program, Formula 3 is used to calculate the student’s payment for a payment period for the residential portion.
Note: A single disbursement cannot exceed 50% of the annual award.