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 students Federal Family Education Loan (FFEL) Program loan or Direct Loan based upon the students 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 |