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(P-99-02) This letter contains the 1999-2000 Federal Pell Grant Program Payment and Disbursement Schedules.

DCLPublicationDate: 1/1/99
DCLID: P-99-2
AwardYear:
Summary: This letter contains the 1999-2000 Federal Pell Grant Program Payment and Disbursement Schedules.


January 1999

P-99-2


Summary: This letter contains the 1999-2000 Federal Pell Grant Program Payment and Disbursement Schedules.

Dear Colleague:

Enclosed are two sets of payment and disbursement schedules for determining Federal Pell Grant awards for the 1999-2000 award year -- July 1, 1999 to June 30, 2000. Each set of schedules -- Regular and Alternative (see discussion below regarding when Alternative Schedules must be
used) -- consists of four separate tables -- full-time, three-quarter-time, half-time, and
less-than-half-time.

The Labor, HHS, and Education Appropriations Act of 1999 (P. L. 105-277) provides an appropriation of $7.7 billion for the Federal Pell Grant Program for 1999-2000 and raises the maximum Federal Pell Grant award to $3,125, up $125 from the previous year. The minimum award continues to be $400. The maximum expected family contribution (EFC) in order to be eligible to receive a Federal Pell Grant increases to 2925. The appropriations act also maintains for 1999-2000 the higher income protection allowances for certain students that were established for 1998-1999.

The Higher Education Act of 1965, as amended (HEA), includes a provision that, under certain conditions, modifies the rules for determining a student’s Pell Grant award to account for “tuition sensitivity”. This provision, Section 401(b)(3), was revised in the Higher Education Amendments of 1998 (P. L. 105-244) so that it is only applicable when the Federal Pell Grant Program maximum award established by an appropriations act exceeds $2,700. This provision provides that the maximum scheduled Federal Pell Grant for a student for an academic year is the sum of:

• $2,700; plus

• One half of the difference between $2,700 and the maximum grant; plus

• The lesser of:

• The remaining one half of the difference; or
• The amount of the student’s tuition plus an allowance determined by the institution as described in sections 472(8) and 472(9) of the HEA if the student has dependent care or disability related expenses.

Accordingly, any student whose 1999-2000 tuition plus any allowance included in the Federal Pell Grant cost of attendance (COA) for dependent care or disability related expenses equals or exceeds $213 (one-half the difference between the maximum award of $3,125 and $2,700) may have his or her Federal Pell Grant award determined using the Regular Payment and Disbursement Schedules. The components used in the Federal Pell Grant COA must always be costs for a full-time student for a full academic year. Because of the details of the award formula, the “tuition sensitivity” provision does not affect any student whose expected family contribution is 201 or higher or whose full-time, full-year COA is less than $2,900.

The tuition cost to be included is the actual or average tuition for a full-time student for a full academic year that is used in the calculation of the student’s Federal Pell Grant COA. An institution that charged only fees in lieu of tuition as of October 1, 1998, may include in its determination of tuition, fees that would normally constitute tuition, even if those charges are not specifically labeled tuition.

Students whose tuition plus any dependent care or disability related expenses (as discussed above) does not equal or exceed $213 are eligible for an award that is generally reduced by the difference between $213 and the amount of those charges. Although this reduction does not affect all payment cells on the schedules, we have decided to issue a complete separate set of schedules (Alternate Schedules) because the distribution of the reduction is not consistent across the tables.

In summary, the Alternative Schedules must be used to determine 1999-2000 Federal Pell Grant award amounts only if all of the following are true:

· the total of a student’s tuition and, if any, dependent care or disability related expenses
included in his or her COA is less than $213;

· a student’s EFC is less than 201; and

· a student’s COA is $2,900 or higher.

The set of Regular Schedules may be used to make 1999-2000 Federal Pell Grant award determinations at institutions not required to use the Alternative Schedules.

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 Monica Woods of my staff at (202) 708-8242 or via e-mail at monica_woods@ed.gov or Steve Carter of the Office of Postsecondary Education at (202) 708-4893 or via e-mail at steve_carter@ed.gov.


Sincerely,



Greg Woods
Chief Operating Officer
Office of Student Financial Assistance Programs


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Last Modified: 01/25/1999