Summary: This letter contains the 1997-98 Federal Pell Grant Program payment and disbursement schedules.
(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.
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
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 email@example.com.
Elizabeth M. Hicks
Deputy Assistant Secretary for
Student Financial Assistance Programs