Federal Updates

ED unveils ARRA Web page

With the passage of the new economic stimulus package, the American Recovery Reinvestment Act (ARRA), ED has created a Web page dedicated to providing information to the education community about the legislation.

The law, which was signed by President Obama on February 17, provides more than $100 billion dollars over the next two years for a variety of education-related initiatives, including more than $30 billion for federal financial aid programs. Those funds will be directed primarily to the Pell Grant and Work-Study Programs, as well as an expansion of current education-related tax credits.

The Web page currently includes ED's press release about the signing of the ARRA into law, an ARRA fact sheet, budget information — including state allocations — excerpts from the law that pertain to federal financial aid programs, and a video statement by Secretary of Education Arne Duncan.

For more information
The Web page is located at www.ed.gov/policy/gen/leg/recovery. Shoptalk Online will keep readers informed as additional information becomes available.

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ED releases Pell grant charts

Last Friday, ED published a Dear Colleague Letter (DCL) P-09-01 announcing the eagerly awaited Pell grant payment and disbursement schedules for the award year of July 1, 2009, through June 30, 2010. Schools must use these charts in awarding all 2009-10 Pell grant awards for full-time, three-quarter-time, half-time, and less-than-half-time students. Note that each of the schedules (full-time, three-quarter-time, half-time, and less-than-half-time) spans two pages in order to display the new extended maximum eligible Expected Family Contributions (EFC) up to 4617.

The maximum Pell grant award for the 2009-10 award year will be $5,350, which is an increase of $619 from the 2008-09 award year. This figure includes the maximum amount of $4,850 appropriated in the American Recovery and Reinvestment Act of 2009, as well as the automatic $490 increase established by the College Cost Reduction and Access Act of 2007.

Also keep in mind that the Higher Education Opportunity Act (HEOA) modified the determination of the minimum Pell grant award so that for the 2009-10 award year, the minimum award is ten percent of the appropriated maximum, or $486. However, students whose EFC equals at least five percent of the appropriated maximum (243) are eligible for the minimum award of $486.

For more information
DCL P-09-01 and the accompanying charts are available on the Information for Financial Aid Professionals (IFAP) website at http://ifap.ed.gov/dpcletters/P0901.html.

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Closed school corner

The following table provides a list of newly reported school closures and error corrections from the Postsecondary Educational Participants System (PEPS) and from the January 2009 Closed School Monthly Report supplied by ED. Schools listed are those with which TG has done business or to which TG has otherwise provided services.

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