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Summary: Federal Pell Grant Disbursement Processing for 2005-2006 Award Year

Publication Date: June 21, 2005

Author: G. Kay Jacks, General Manager, FSA Application, School Eligibility and Delivery Services

Summary: Federal Pell Grant Disbursement Processing for 2005-2006 Award Year

Posted on 06-21-2005

The Common Origination and Disbursement (COD) System will now accept Federal Pell Grant (Pell Grant) actual disbursement records for the 2005-2006 Award Year. This means that schools can now submit or update disbursements with a Disbursement Release Indicator (DRI) equal to true.

At this time, we want to remind schools of the following disbursement-related information:

  • The earliest date on which a school may disburse a Pell Grant for the 2005-2006 Award Year, either with Federal funds or its own funds, is July 1, 2005.
  • 2005-2006 Pell Grant funds will be available for draw in the Grant Administration and Payment System (GAPS) on July 1, 2005.
  • Advanced Funded schools may submit an actual disbursement up to 30 days before the disbursement date. However, the disbursement will not be posted and funded in the GAPS until 7 days before the disbursement date.

    As an Advanced Funded school submits actual disbursements, the total accepted and posted amount for each disbursement is applied to the amount of the school's Initial Current Funding Level (CFL). Only after the Initial CFL amount has been reached will the school's CFL be increased to cover additional accepted and posted disbursements. A new Electronic Statement of Account (ESOA) is sent to the school each time its CFL amount changes.

  • Schools that participate in the Just in Time pilot and schools on Reimbursement, Heightened Cash Monitoring 1 (HCM1), or Heightened Cash Monitoring 2 (HCM2) have not received an Initial CFL. These schools are eligible for a CFL once actual disbursements have been accepted and posted. A new ESOA is sent to a school each time its CFL amount changes.

For additional 2005-2006 disbursement-related information, schools should refer to the "Notice of Deadline Dates for Receipt of Applications, Reports, and Other Records for the 2005-2006 Award Year" published in the Federal Register on June 7, 2005 (70 FR 33134). The text of this notice is available on the IFAP Web site at http://ifap.ed.gov/fregisters/FR06072005.html.

If you have questions about this announcement, contact the COD School Relations Center at 800/4PGRANT. You may also e-mail CODSupport@acs-inc.com.