Shoptalk 536, January 19, 2010
Industry Update
ED releases Pell Grant charts
On January 13, 2010, ED published a Dear Colleague Letter (DCL) P-10-01 announcing the eagerly awaited Pell Grant payment and disbursement schedules for the 2010-11 award year (July 1, 2010, through June 30, 2011). Schools must use these charts in awarding all 2010-11 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 extended maximum eligible Expected Family Contributions (EFC) up to 4617.
The maximum Pell Grant award for the 2010-11 award year will be $5,550, which is an increase of $200 from the 2009-10 award year. This figure includes the maximum amount of $4,860 appropriated in the Consolidated Appropriations Act, 2010 (P.L. 111-117), as well as the automatic $690 increase established by the College Cost Reduction and Access Act of 2007 (CCRAA).
Also keep in mind that the Higher Education Opportunity Act (HEOA) modified the determination of the minimum Pell Grant award, so that for the 2010-11 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 plus the CCRAA-added $690, for a total minimum award for a full-time student of $1,176.
For more information
DCL P-10-01 and the accompanying charts are available on the Information for Financial Aid Professionals (IFAP) website at http://ifap.ed.gov/dpcletters/P1001.html.
ED issues correction notice on treatment of AmeriCorps benefits
On January 14, ED released an Electronic Announcement that provides the following guidance on the treatment of AmeriCorps benefits in awarding federal student aid.
"The purpose of this announcement is to inform institutions that the 2009-2010 Federal Student Aid Handbook in Volume 3 on page 3-144 incorrectly indicates that AmeriCorps awards or benefits are no longer estimated financial assistance (EFA). This general statement is not accurate. AmeriCorps awards or benefits are generally EFA for purposes of the Federal Title IV student assistance programs, as they have been in the past. Also as in the past, AmeriCorps awards or benefits are not to be included as EFA when determining eligibility for subsidized Stafford loans, but are included as EFA for unsubsidized Stafford loans. In addition, while AmeriCorps awards or benefits are EFA, an institution may, as in the past, for the Campus-Based, ACG, National SMART Grant, and the TEACH Grant programs exclude as EFA a portion of any subsidized Stafford loan that is equal to or less than the amount of the student's AmeriCorps award or benefit paid for the cost of attendance."
More information
The announcement is also available on the Information for Financial Aid Professionals website. If you have questions about this topic, please contact TG customer assistance at (800) 845-6267, or send an email message to cust.assist@tgslc.org.
