| DCLPublicationDate: 1/1/97 DCLID: POL-97-1 AwardYear: Summary: This letter contains the 1997-98 Federal Pell Grant Program payment and disbursement schedules. POL-97-1 (Pell list only) January 31, 1997 Summary: This letter contains the 1997-98 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 payment and disbursement schedules for determining Federal Pell Grant awards during the 1997-98 award year -- July 1, 1997 to June 30, 1998. The 1997-98 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 -- plus a new page of alternate schedules for some students whose tuition charges are extremely low (less than $150). The Omnibus Consolidated Appropriations Act of 1997 (P. L. 104-208) provides an appropriation of $5.919 billion for the Federal Pell Grant Program for 1997-98 and raises the maximum Federal Pell Grant award to $2,700, up $230 from the previous year. The enclosed schedules have been calculated using the new $2,700 maximum award. The maximum expected family contribution amount in order to be eligible to receive a Federal Pell Grant increases to 2,500. The minimum award continues to be $400. You should be aware that section 401(b) of the Higher Education Act of 1965, as amended, includes a provision that is applicable when the Federal Pell Grant Program maximum award established by an appropriations act exceeds $2,400. This provision provides that the maximum Federal Pell Grant a full-time student may receive for an academic year is the sum of: ò $2,400; plus ò One half of the difference between $2,400 and the established maximum grant; plus ò The lesser of: ò The remaining one half of the difference; or ò The amount of tuition charged the student plus $750 if the student has dependent care or disability related expenses Accordingly, any student whose 1997-98 tuition charges for the academic year are equal to or exceed $150 may have his or her Federal Pell Grant award determined using the regular payment and disbursement schedules. In addition, since the maximum award in 1997-98 is $2,700, any student who has dependent care or disability expenses included in the student's cost of attendance may also have his or her award determined using the regular schedules. Note that an institution that charges only fees in lieu of tuition, as of the date of this letter, may include in its determination of tuition charged, fees that would normally constitute tuition, even if those charges are not specifically labeled tuition. Some students whose assessed tuition charges are not at least $150 and who do not have dependent care or disability costs are eligible for an award that is generally reduced by the difference between $150 and the amount of tuition charges assessed. Because the maximum award for 1997-98 is $2,700, this reduction will only be required when the scheduled award would have been taken from any of the four payment cells located in the bottom left quadrant of the payment and disbursement schedules. These cells are highlighted on the regular payment and disbursement schedules. In these instances the student's Federal Pell Grant award should be determined using the alternate schedules included as part of this "Dear Colleague" letter. 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, please contact Steve Carter at (202) 708-4893 or via e-mail at steve_carter@ed.gov. Elizabeth M. Hicks Deputy Assistant Secretary for Student Financial Assistance Programs Enclosures |