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(P-96-02) (P-96-02) This letter contains the REVISED 1996-97 Federal Pell Grant Program payment and disbursement schedules.

DCLPublicationDate: 5/1/96
DCLID: P-96-2
AwardYear:
Summary: This letter contains the REVISED 1996-97 Federal Pell Grant Program payment and disbursement schedules.


May 1996

P-96-2


Summary: This letter contains the REVISED 1996-97 Federal Pell
Grant Program payment and disbursement schedules.


FEDERAL STUDENT FINANCIAL AID HANDBOOK
REFERENCE: Please refer to Chapter 4 of the Federal Student
Financial Aid Handbook for further assistance.


Dear Colleague:

Enclosed are the revised payment and disbursement schedules for
determining Federal Pell Grant awards during the 1996-97 award
year -- July 1, 1996 to June 30, 1997. THE REVISED 1996-97
SCHEDULES USE THE NEW MAXIMUM FEDERAL PELL
GRANT OF $2,470. The 1996-97 schedules consist of four separate
tables for calculating scheduled awards and disbursements: full-time,
three-quarter-time, half-time, and less-than-half-time students.

- You must use these revised payment and disbursement
schedules to calculate Federal Pell Grant awards for the
1996-97 award year.

- Discard the schedules published in February, 1996 (Dear
Colleague Letter P-96-1).

On April 26, 1996, President Clinton signed into law the Omnibus
Consolidated Rescissions and Appropriations Act of 1996 (Public
Law 104-134). The new law provides an appropriation of
$5.747 billion for the Federal Pell Grant Program and includes an
increase of $30 in the maximum Federal Pell Grant to $2,470.
Therefore, the maximum expected family contribution amount in
order to be eligible to receive a Federal Pell Grant increases to
$2,270.

If, prior to June 1, 1996, an institution calculated the amount of a
student’s Federal Family Education Loan (FFEL) Program loan or
Direct Loan based upon the student’s estimated 1996-97 Federal
Pell Grant award calculated under the payment and disbursement
schedules the Department provided in February, 1996 --

- The Department will not require the institution to
recalculate the FFEL or Direct Loan amount using the
revised schedules.

- The Department will consider that an institution did not
cause an overaward of up to $30 with regard to a loan under the
FFEL or Direct Loan Programs if the potential overaward was the
result of the maximum 1996-97 Federal Pell Grant being $2,470
rather than $2,440.

Exception: The above provision will not apply to students who will
receive a Federal Pell Grant award of $400 under the new schedules
if the students were ineligible to receive a Federal Pell Grant award
under the February, 1996, schedules. For these students, an
institution must recalculate eligibility and, if necessary, reduce FFEL
or Direct Loan Program loans if the students’ $400 Federal Pell
Grant awards will result in their receiving more than their financial
need.

We appreciate your continued support in making Federal Pell Grant
assistance available to students. If you have any questions regarding
the enclosed payment and disbursement schedules for the calculation
of awards, please contact Steve Carter at (202) 708-4893 or via
e-mail at steve_carter@ed.gov.



Elizabeth M. Hicks
Deputy Assistant Secretary,
Student Financial Assistance Programs

Enclosure

Last Modified: 04/30/1996