Publication Date: December, 2000
DCL ID: P-00-03
Summary: This letter contains two sets of 2001-2002 Federal Pell Grant Program Payment and Disbursement Schedules - Regular and Alternate.
Summary: This letter contains two sets of 2001-2002 Federal Pell Grant Program Payment and Disbursement Schedules – Regular and Alternate.
Enclosed are two sets of payment and disbursement schedules for determining Federal Pell Grant awards for the 2001-2002 award year – July 1, 2001 to June 30, 2002. Each set of schedules – Regular and Alternate (see discussion below regarding when the Alternate Schedules must be used) – consists of four separate tables - full-time, three-quarter-time, half-time, and less-than-half-time.
The Consolidated Appropriations Act, 2001, provides an appropriation of $8.8 billion for the Federal Pell Grant Program for the 2001-2002 award year and raises the maximum Federal Pell Grant award to $3,750, up $450 from the previous award 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 3550.
The Alternate Schedules must be used to determine 2001-2002 Federal Pell Grant award amounts only if all of the following are true:
- The total of the student’s tuition and any dependent care or disability related expenses included in his or her Cost of Attendance (COA) is less than $525;
- The student’s EFC is 500 or less; and
- The student’s total COA is $3,200 or higher.
The set of Regular Schedules must be used to make 2001-2002 Federal Pell Grant award determinations for all other students.
Regarding the Alternate Schedules, 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 by the Higher Education Amendments of 1998 and is only applicable when the Federal Pell Grant Program maximum award exceeds $2,700. The 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 2001-2002 tuition (plus any allowance included in the COA for dependent care or disability related expenses) is equal to or exceeds $525, one-half the difference between the maximum award of $3,750 and $2,700, must 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. 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 COA tuition component plus any dependent care or disability related expenses (as discussed above) does not equal or exceed $525 are eligible for an award that is generally reduced by the difference between $525 and the amount of those charges. Because of the details of the award formula, the "tuition sensitivity" provision does not affect any student whose 2001-2002 EFC is 501 or higher or whose full-time, full-year COA is less than $3,200. Although this reduction does not affect all payment cells on the schedules, we have decided to issue a complete separate set of Alternate Schedules because the distribution of the reduction is not consistent across the tables.
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 the Department's SFA Customer Service Call Center staff. Staff members are available Monday through Friday between the hours of 9:00 AM and 5:00 PM (Eastern Time) at 1-800-433-7327. After hours calls will be accepted by an automated voice response system. Callers leaving their name and phone number will receive a return call the next business day. You may FAX an inquiry to the SFA Customer Service Call Center staff at (202) 260-4199, or E-mail the staff at email@example.com.
G. Kay Jacks, General Manager
Student Financial Assistance
Jeff Baker, Director
Student Financial Assistance