| PublicationDate: 3/20/97 Summary: Advisory and Recalculation of a Federal Pell Grant Award Author: PDD - Policy Development Division/PTAS Student Financial Assistance Programs Policy Development Division Advisory on Recalculation of a Federal Pell Grant Award March 20, 1997 Summary: The Department is changing policy guidance previously provided regarding the recalculation of a Federal Pell Grant award when a student's enrollment status changes during a payment period. Schools that wish to establish a policy under which they will recalculate a student's Pell Grant award when there is a change in enrollment status may include as part of that policy a provision that they will recalculate only when the change in enrollment status occurs before a set point in time. Regulatory Provision: Currently section 690.80(b)(2)(I) of the Federal Pell Grant Program regulations states that; If the student's projected enrollment status changes during a payment period after the student has begun attendance in all of his or her classes for that payment period, the institution may (but is not required to) establish a policy under which the student's award for the payment period is recalculated. Any such recalculations must take into account any changes in the cost of attendance. If such a policy is established, it must apply to all students. Discussion: Policy guidance previously provided by the Department and included in the current Title IV Update Training provided that, if a school established a policy under which it would recalculate a Federal Pell Grant award in instances of a change in enrollment status, it had to recalculate awards for such changes that occurred throughout the entire payment period. After a further review of the regulatory language, consideration of programmatic and fiscal integrity, and burden placed on schools and students; we are changing the policy guidance for recalculation of Federal Pell Grant awards due to enrollment status changes. If an institution establishes a policy under which it will recalculate a Pell Grant award when the enrollment status of a student changes during a payment period, it may include in that policy a provision that it will recalculate such an award only when the change in enrollment status occurs before a specific date within the payment period. For example, a school may establish a policy that it will recalculate Pell Grant awards only for enrollment status changes that occur up to the "add/drop" date of a term. Such a policy would require the school to recalculate the Pell Grant award for any student whose enrollment status changed up to that date. It would also preclude the school from making any adjustments for changes to enrollment status that occurred after that date. Of course, a school could have a policy under which it will recalculate Pell Grant awards for changes in enrollment status that occur throughout the term, or it could have a policy under which it never recalculates an award. Schools are advised that the provisions of any established policy related to the recalculation of Pell Grant awards due to changes in enrollment status must be in writing, be applied consistently to all students, and, if it includes a provision to recalculate, apply to both increases and decreases in enrollment status. Date: March 20, 1997 Jeff Baker Policy Development Division Student Financial Assistance Programs |