Pell LEUs - Tracking and Enforcing New Limits

Report
Presented by:
Sheryl Ross-Mahoney, USA Funds
Jenny Stephens, Indiana University
With input, support and inspiration from Sue Allmon, WGU
Federal Pell Grants - A Brief History
 Today’s Federal Pell Grant Program
came into being as the Educational
Opportunity Grant in 1965.
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Federal Pell Grants - A Brief History
 Today’s Federal Pell Grant Program came into being as
the Educational Opportunity Grant in 1965.
 In 1972, it was renamed the Basic
Educational Opportunity Grant with a
maximum award of $452.
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Federal Pell Grants - A Brief History
 Today’s Federal Pell Grant Program came into being as
the Educational Opportunity Grant in 1965.
 In 1972, it was renamed the Basic Educational
Opportunity Grant with a maximum award of $452.
 1980 Reauthorization of the Higher
Education Act - BEOG was renamed
Pell Grant after Senator Claiborne Pell
of Rhode Island.
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HEOA & Pell Grant Limits
 The HEOA, enacted on August 2008,
made two major changes in the Federal
Pell Grant Program:
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HEOA & Pell Grant Limits
1) Limits Pell Grants to up to 18
semesters or its equivalent for students
who first receive a Pell Grant on or after
July 1, 2008
2) Allowed for ‘Year Round Pell’ capped
at 200% of scheduled award
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In April 2011…
 The Department of Defense and Full-
Year Continuing Appropriations Act
repealed the provision for a 2nd Pell
Grant Scheduled Award
 Effective for 2011-12 aid year
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In December, 2011…
 Congress passed an omnibus spending
bill for fiscal year (FY) 2012 with a new
limit of 12 full-time semesters with no
provision for prior recipients
 Effective for 2012-13 aid year
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Lifetime Eligibility Used (LEU)
 April 2012 – DOE began sending weekly
reports to schools identifying 2012-13
FAFSA applicants who had received
more than 450% of their lifetime limit.
 The Pell data on these reports only went
back to 1993-94.
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Lifetime Eligibility Used (LEU)
 June 2012 - Pell records prior to 1993-94
were accessed, increasing the number
of students affected.
 ~100,000 students are expected to be
impacted for 2012-13
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Using the LEU Data
 Make more accurate awards if LEU > 500%:
 At Western Governors, students on the report are
flagged and excluded from auto-packaging, then
awarded manually
 At Indiana University, student records are updated with
a ‘derived’ annual amount used (100 minus LEU% in
excess of 500) so mass packaging will limit the award for
12-13
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Think ‘Mid-year transfer!’
 Converting the LEU to an annual amount used (600 –
LEU) tells you what the student has left for the year.
Example: LEU = 525%
75% is still available for the year
25% is considered ‘used’ for the year
Do not split remaining eligibility across terms.
Award full eligibility each term until it is gone.
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Tracking Changing LEUs
 As 2012 Summer awards were reported, new
students appeared on reports, and previously
reported LEUs changed
 IU wrote a report to check current Pell awards
against updated LEUs
 As Fall 2012 awards were added to reports, this
became more complicated to track
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COD - ‘System of Record’ for Pell
 July 2012 changes in COD:
 Pell LEU% is available in COD and reported for
ALL students in Pell response files
 Warning Edits were added to origination and
disbursement response files
•
•
177 – near the limit
178 – exceeds limit
 LEU data added to MRR, reconciliation and
YTD files
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2013-14 Changes
 Pell LEU% reported for ALL students on
ISIR
 NSLDS will display obvious ‘warning icons’
for students close to, or at / over the limit
 COD Pell LEU History Page is coming
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Appealing Inaccurate Data
 A student who thinks the Pell LEU is
wrong should work with his school
 The school works as an advocate for the
student
 Obtain and review the COD history with
the student
 School will be told how to escalate review
with FSA (See FSA presentation)
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Overpayments
 There is NO hard reject edit for
disbursements to students at or over
the limit – school must research all 178
warning edits
 Compliance will be monitored via
audits and program reviews
 New edits are planned for 2014-15
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Liability for Overpayments
 The school may be liable if it had accurate
LEU data available at disbursement
 The student is ultimately liable for any
overpayment
 There is no room for rounding – over is over
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Timely Reporting: GEN 12-01
 An institution must submit Pell Grant
disbursement data to COD no later than
30 days after any disbursement or
adjustment.
 Failure to meet this requirement could
result in ED disallowing the
disbursement.
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Timely Reporting
 ED is considering reducing the 30-day
window in the future to facilitate
managing Pell limits
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Declining a Pell Grant?
 A student with a high EFC who will get
only a small grant may want to decline
to use Pell, saving eligibility for a year
in which the award might be higher.
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Declining a Pell Grant: GEN 12-18
 A student may decline all or part of a
Pell Grant during the award year with a
signed, written statement:
Clearly indicating his intent to decline
or return funds, and
Acknowledging that funds may not be
available at a later date.
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Communication with Students
 ED sent email messages from April 16
to July 1 to students at or near the limit
 Starting in July, SAR comment codes
were added to alert applicants at or
near the limit
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Communication with Students
 At Western Governors, the ‘call team’
contacted students at 450% or more by
email and phone to inform and discuss
options
 At Indiana University, a report was
developed to identify students > 500%
with their summer and fall enrollment
status, level and remaining loan eligibility
to enable targeted outreach
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Communication with Students
 What are you doing?
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Helping Affected Students
 What are you doing?
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Communicating Limits to
ALL Students
 How are you altering your message to
new and returning students, not yet
affected by the limits?
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QUESTIONS?
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RESOURCES
FSA Presentation – Pell Grant Program
Update (PPTX) at:
http://ifap.ed.gov/presentations/2012FS
AConference.html
Contact:
Sheryl Mahoney, USA Funds
[email protected]
Jenny Stephens, Indiana University
[email protected]
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