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Advisory and Recalculation of a Federal Pell Grant Award

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

Last Modified: 08/16/1999