Publication Date: June 14, 2007 Author: William Leith, Acting General Manager, Application, Operations and Delivery Services, Federal Student Aid Summary: 2006-2007 ACG Deobligation Due to No Corresponding Pell Grant Warning Message Posted on 06-14-2007 One of the eligibility criteria to be awarded an Academic Competitiveness Grant (ACG) is that the student must receive a Federal Pell Grant (Pell Grant) disbursement in the same award year. This requirement in 34 CFR 691.15(a)(2) is met if the student received a Pell Grant disbursement at any school he or she attended in the same award year. That is, the student is not required to receive the Pell Grant and the ACG at the same school. To ensure that ACGs have been awarded consistent with the Pell Grant eligibility requirement, each award year, we will perform a Common Origination and Disbursement (COD) System-wide job that reduces to zero ($0.00) all ACG actual disbursements made to a student who does not have a Pell Grant actual disbursement for that award year in the COD System. We are ready to perform this job for the 2006-2007 Award Year because the majority of ACG and Pell Grant disbursements for the first and second payment periods of the 2006-2007 Award Year should have already been submitted to the COD System for processing. 2006-2007 ACG Deobligation Due to No Corresponding Pell Grant Warning Message Processed on June 13, 2007 On June 13, 2007, we began processing a message to schools that have reported 2006-2007 ACG actual disbursements for a student who does not have a 2006-2007 Pell Grant actual disbursement recorded in the COD System. The message is a warning that these disbursements will be considered overawards and reduced to a zero dollar amount ($0.00), even if the disbursements were previously accepted in the COD System. The reduction of the affected disbursements is scheduled to occur on July 6, 2007. We sent the June 13, 2007 warning message to schools' Student Aid Internet Gateway (SAIG) mailboxes in the message class AGTX07OP. Additionally, we sent a file of student records reported to the COD System that do not have a corresponding 2006-2007 Pell Grant actual disbursement in the Reconciliation Report message class AGRC07OP. Schools that receive the warning message should review the accompanying Reconciliation Report and, if applicable, report 2006-2007 Pell Grant disbursements for affected students before July 6, 2007. Exception Process for No Corresponding 2006-2007 Pell Grant Due to R2T4 Calculation As schools are aware, ACG awards are included in the Return of Title IV Funds (R2T4) calculation for a student who withdraws from his or her educational program. The required priority order for returning unearned Title IV grants is as follows: Pell Grant, ACG, National Science and Mathematics Access to Retain Talent Grant (National SMART Grant), and Federal Supplemental Educational Opportunity Grant (FSEOG). The subsequent full repayment of a Pell Grant as a result of the R2T4 calculation and the priority order for Title IV grants (Pell Grant before ACG) do not make the student ineligible for the earned portion of an ACG. In such a case, the school must ensure that it has documented in its records the student's original amount of Pell Grant eligibility as well as the return of those funds consistent with the R2T4 regulations in 34 CFR 668.22. Some of the student records included in the Reconciliation Report may be for students who do not have a corresponding Pell Grant for the 2006-2007 Award Year due to the documented full repayment of the Pell Grant as a result of an R2T4 calculation. A school can inform us of the student records to which this exception applies by calling the COD School Relations Center at 800/4PGRANT (800/474-7268) by July 3, 2007. A customer service representative will collect the following information from the school via the phone:
Upon notification that an R2T4 exception applies, we will exclude the applicable student records from the reduction scheduled for July 6, 2007. Contact Information If you have questions about the warning message or need to report an R2T4 exception (by July 3, 2007 as explained above), contact the COD School Relations Center at 800/4PGRANT (800/474-7268) for ACG, National SMART Grant, and Pell Grant. You may also e-mail CODSupport@acs-inc.com. |