Publication Date: January 2002
DCL ID: P-02-01
Summary: This letter contains two sets of 2002-2003 Federal Pell Grant Program Payment and Disbursement Schedules – Regular and Alternate.
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Summary: This letter contains two sets of 2002-2003 Federal Pell Grant Program Payment and Disbursement Schedules â Regular and Alternate.
Enclosed are two sets of payment and disbursement schedules for determining Federal Pell Grant awards for the 2002-2003 award yearâJuly 1, 2002, to June 30, 2003.Â Each set of schedulesâRegular and Alternate (see discussion below regarding when the Alternate Schedules must be used)âconsists of four separate tables: full-time, three-quarter-time, half-time, and less-than-half-time.
The Department of Education Appropriations Act, 2002 (P.L. 107-116), provides an appropriation of $10.3 billion for the Federal Pell Grant Program for the 2002-2003 award year.Â This legislation also raises the maximum Federal Pell Grant award to $4,000, an increase of $250 over the current award year.Â The minimum award continues to be $400.Â The maximum Expected Family Contribution (EFC) in order to be eligible to receive a Federal Pell Grant increases to 3800.
The Alternate Schedules must be used to determine 2002-2003 Federal Pell Grant award amounts only if all of the following are true:
Â·Â Â Â Â Â Â Â The total of the studentâs tuition and any dependent care or disability related expenses included in his or her Cost of Attendance (COA) is less than $650;
Â·Â Â Â Â Â Â Â The studentâs EFC is 600 or less; and
Â·Â Â Â Â Â Â Â The studentâs total COA is $3,400 or higher.
The set of Regular Schedules must be used to make 2002-2003 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 studentâs Pell Grant award to account for "tuition sensitivity."Â 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.Â The provision provides that the maximum scheduled Federal Pell Grant for a student for an academic year is the sum of:
Â·Â Â Â Â Â Â Â $2,700; plus
Â·Â Â Â Â Â Â Â One half of the difference between $2,700 and the maximum grant; plus
Â·Â Â Â Â Â Â Â The lesser of:
Â·Â Â Â Â Â Â Â The remaining one half of the difference; or
Â·Â Â Â Â Â Â Â The amount of the studentâs 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 2002-2003 tuition (plus any allowance included in the COA for dependent care or disability related expenses) is equal to or exceeds $650, one-half the difference between the maximum award of $4,000 and $2,700, must have his or her Federal Pell Grant award determined using the Regular Payment and Disbursement Schedules.Â The components used in the Federal Pell Grant COA must always be costs for a full-time student for a full academic year.Â 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 $650 are eligible for an award that is generally reduced by the difference between $650 and the amount of those charges.Â Because of the details of the award formula, the "tuition sensitivity" provision does not affect any student whose 2002-2003 EFC is 601 or higher or whose full-time, full-year COA is less than $3,400.Â Although this reduction does not affect all payment cells on the schedules, a complete, separate set of Alternate Schedules is provided because the distribution of the reduction is not consistent across the tables.
The Department appreciates your continued support in making Federal Pell Grant assistance available to students.Â If you have any questions regarding the enclosed payment and disbursement schedules, please contact the Department's SFA Customer Service Call Center staff.Â 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.Â After hours calls will be accepted by an automated voice response system.Â Callers leaving their name and phone number will receive a return call the next business day.Â Alternatively, you may FAX an inquiry to the SFA Customer Service Call Center staff at (202) 275- 5532, or E-mail the staff at email@example.com.
Kenneth W. Tolo
Acting Deputy Assistant Secretary for
Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Policy, Planning and Innovation