Shoptalk 533, December 15, 2009
Industry Update
Senate passes omnibus spending bill
The Senate Health, Education, Labor, and Pensions (HELP) Committee staff and members continue to work on The Student Aid and Fiscal Responsibility Act (H.R. 3221). The Senate just passed the Fiscal Year 2010 Consolidated Appropriations Conference Report. The omnibus spending bill contains six separate spending bills, including a FY 2010 education spending bill that leaves most Title IV programs at level funding. The legislation will now go to the President for signature. The omnibus bill reflects the priorities of the Obama administration and congressional Democrats on a host of domestic and international issues, including education. Learn more about the omnibus spending bill.
Getting the gist of year-round Pell
Effective July 1, 2009, the Higher Education Opportunity Act (HEOA) amended the Higher Education Act (HEA Sec. 401(b)(5)) to provide to students who met certain conditions up to two, consecutive Federal Pell Grant Scheduled Awards during a single award year (a.k.a. year-round Pell). According to the 2009-10 Federal Student Aid Handbook, a Scheduled Award "is the maximum amount the student can receive during the award year, if he or she attends full-time for a full academic year." This should not be confused with an annual award, which "is the maximum amount a student would receive during a full academic year for a given enrollment status, [expected family contribution or] EFC, and [cost of attendance or] COA. Note that for a full-time student, the annual award will be the same as the Scheduled Award" (p. 3-43).
2009-10 award year
For the 2009-10 award year, a Pell-eligible student who is enrolled in a certificate program or a program leading to an associate or baccalaureate degree or a certificate program may be in any enrollment status to receive payment from his or her first Scheduled Award. To receive funds from a second Scheduled Award during this same award year, the student must be enrolled at least half-time. If a student qualifies for a second Scheduled Award, a school may begin paying from the second Scheduled Award while making a payment that exhausts the balance of the student's first Scheduled Award. Note that "the second Pell Grant Scheduled Award is not an optional provision"; qualifying students must be paid (p. 3-44).
For instance, a student who is eligible for the maximum 2009-10 Pell Scheduled Award of $5,350, attending full time for a full academic year in a term-based program would be awarded two Scheduled Awards in one award year, as follows:
| 2009-2010 award year | |||
|---|---|---|---|
| Summer 2009 $2,675 |
Fall 2009 $2,675 |
Spring 2010 $2,675 |
Summer 2010 $2,675 |
Generally, for most term-based programs, schools will award summer, fall, and spring (or fall, spring, and summer) in one award year rather than including summer "bookends" for the award year; however, including two summers in one award year is possible.
A student who is eligible for the maximum 2009-10 Pell Scheduled Award of $5,350, attending full time in a 1,500-clock-hour, 42-week program (for which the school defines the academic year as 900 clock hours and 26 weeks) would be awarded two Scheduled Awards in one award year, thus:
| 2009-2010 award year | |||
|---|---|---|---|
| Jul-Sep 2009 450 clock hours 13 weeks $2,675 |
Oct-Dec 2009 450 clock hours 13 weeks $2,675 |
Jan-Feb 2010 300 clock hours 8 weeks $1,646 |
Mar-Apr 2010 300 clock hours 8 weeks $1,646 |
ED provides a recorded, one-hour training in three parts, Pell Grant Calculations for Clock-Hour Programs, including academic program eligibility, clock hour, academic year, award year, Scheduled Award, annual award, and cost of attendance. The above example for awarding year-round Pell is from the third part of this training. Note: no recording key is required to view the session, but you must enter your name to access the recording.
2010-11 award year
ED's presentation and video at the FSA Conference in Nashville in early December covered provisions of the final rule published on October 29, 2009, to implement changes made by the HEOA. Provisions of this final rule must be used for the 2010-11 award year, and any crossover payment period (i.e., a payment period that includes June 30 and July 1) assigned to the 2010-11 award year. Prior to July 1, 2010, on a student-by-student basis, for crossover payment periods assigned to the 2009-10 award year, a school may opt for early implementation of these provisions.
Note that, in addition to the two existing eligibility requirements for year-round Pell (discussed above), for the 2010-2011 award year (and for some crossover periods), the final rule adds a third requirement that the student must also be enrolled in credit or clock hours attributable to his or her second academic year within that award year. If the student drops these qualifying credit or clock hours, the school must recalculate for a change in enrollment status to determine if the student is still eligible for a second Scheduled Award. Also, on a case-by-case basis, for circumstances beyond the student's control, the school may waive this additional requirement.
Another important change established by the final rule is that a school must assign a crossover payment period to the award year from which the student derives the higher payment. In addition, a school may be required to reassign the crossover payment period if, by a certain deadline, the school receives subsequent information that changes the award year under which a higher grant would be paid. More details on these deadlines will be published in an upcoming Federal Register.
More information
ED's presentation and video includes more details regarding effective date, crossover payment periods, packaging concerns, and other provisions as well as examples of year-round Pell awards.
In regard to the Pell Grant Program, community comments are addressed and regulatory changes are discussed beginning on page 55919 of the final rule. Amendatory language for the following sections appears on pages 55951 and 55952:
- § 690.6 Duration of student eligibility
- § 690.63 Calculation of a Federal Pell Grant for a payment period
- § 690.64 Calculation of a Federal Pell Grant for a payment period which occurs in two award years
- § 690.67 Receiving up to two Scheduled Awards during a single award year
Closed school corner
The following table provides a list of newly reported school closures and corrections from the Postsecondary Educational Participants System (PEPS) and from the December 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.
| Newly reported closures | |||
|---|---|---|---|
| OPE School ID |
School Name/Address |
Unofficial Closure Date |
ED's Official Closure Date |
| 00473000 | McIntosh College 23 Cataract Ave. Dover, NH 03820 |
N/A | 09/19/2009 |
