Volume 3 Calculating Awards & Packaging - ed

Volume 3 Calculating Awards & Packaging

Table of Contents

Introduction.......................................................................................................................3-1

Chapter 1--Academic Calendar, Payment Periods & Disbursements................................................................................................ 3-5

ACADEMIC YEAR REQUIREMENTS.................................................................................................................................................. 3-5 ACADEMIC CALENDARS & TERMS.................................................................................................................................................. 3-9 CREDIT-HOUR DEFINITION.............................................................................................................................................................3-11 PAYMENT PERIODS............................................................................................................................................................................ 3-13 TIMING OF DISBURSEMENTS--GENERAL RULES...................................................................................................................3-22 TIMING OF FSA GRANT DISBURSEMENTS................................................................................................................................3-28 INTERIM DISBURSEMENTS..............................................................................................................................................................3-30 DIRECT LOAN DISBURSEMENTS...................................................................................................................................................3-30 RETAKING COURSEWORK IN TERM PROGRAMS.....................................................................................................................3-35 TRANSFER, RE-ENTRY & REPEATING COURSEWORK WHEN PROGRESS IS NOT TRACKED BY TERMS..............3-38

Chapter 2--Cost of Attendance (Budget).............................................3-41

ALLOWABLE COSTS............................................................................................................................................................................3-42 COSTS FOR PERIODS OTHER THAN NINE MONTHS..............................................................................................................3-54

Chapter 3--Calculating Pell and Iraq & Afghanistan Service Grant Awards ...................................................................................3-55

THE SEQUESTER AND IRAQ & AFGHANISTAN SERVICE GRANTS.....................................................................................3-56 SCHEDULED AWARD, AWARD YEAR, & ANNUAL AWARD...................................................................................................3-56 TERMS AND PAYMENT METHODS FOR CALCULATING PELL GRANTS..........................................................................3-61 CREDIT-HOUR TERM-BASED PROGRAMS..................................................................................................................................3-62 FORMULA 1: CREDIT-HOUR TERM-BASED PROGRAMS.......................................................................................................3-64 FORMULA 2: STANDARD-TERM PROGRAMS WITH LESS THAN 30 WEEKS IN THE FALL THROUGH SPRING...............................................................................................................................3-68 FORMULA 3: GENERAL FORMULA FOR ANY TERM-BASED PROGRAM.........................................................................3-68 FORMULA 4: CLOCK-HOUR AND NON-TERM CREDIT-HOUR PROGRAMS..................................................................3-72 SUMMER TERMS & OTHER CROSSOVER PAYMENT PERIODS............................................................................................3-75 CALCULATING & AWARDING REMAINING ELIGIBILITY........................................................................................................3-82 PELL RECALCULATIONS ..................................................................................................................................................................3-91 CHAPTER 3 APPENDICES.................................................................................................................................................................3-95 APPENDIX A ? PELL FORMULA 2: CALCULATIONS FOR STANDARD-TERM PROGRAMS WITH LESS THAN 30 WEEKS IN FALL THROUGH SPRING..........................................................................3-96 APPENDIX B ? PELL FORM. 5: CALCULATIONS FOR CORRESPONDENCE STUDY PROGRAMS............................3-98 APPENDIX C ? PELL FORMULA SUMMARIES..........................................................................................................................3-102

Chapter 4--Calculating TEACH Grants................................................3-109

TEACH GRANT BASICS....................................................................................................................................................................3-109 CALCULATING TEACH GRANT PAYMENTS FOR PAYMENT PERIODS............................................................................3-110 TEACH GRANT FORMULAS...........................................................................................................................................................3-112 PACKAGING TEACH GRANTS.......................................................................................................................................................3-113 RECALCULATING TEACH GRANTS.............................................................................................................................................3-113

Chapter 5--Direct Loan Periods and Amounts................................ 3-115

LOAN PERIODS, ACADEMIC TERMS, & PROGRAM LENGTH............................................................................................ 3-116 ANNUAL LOAN LIMITS....................................................................................................................................................................3-121 ANNUAL LOAN LIMIT PROGRESSION....................................................................................................................................... 3-129 GRADE LEVEL PROGRESSION......................................................................................................................................................3-141 PRORATING ANNUAL LOAN LIMITS FOR DIRECT SUB/UNSUB LOANS (UNDERGRADUATE ONLY)................3-144 REMAINING LOAN ELIGIBILITY FOR STUDENTS WHO TRANSFER OR CHANGE PROGRAMS............................ 3-150 AGGREGATE LOAN LIMITS............................................................................................................................................................ 3-156 MANAGING DIRECT LOANS IN MODULES & INTERSESSIONS.........................................................................................3-168 RECALCULATION & DIRECT LOANS...........................................................................................................................................3-170 EFFECT OF OVERBORROWING THEN REGAINING ELIGIBILITY...................................................................................... 3-171

Chapter 6--Awarding Campus-Based Aid......................................... 3-175

GENERAL CAMPUS-BASED PROGRAM AWARD RULES..................................................................................................... 3-175 AWARDING FSEOG........................................................................................................................................................................... 3-177 AWARDING FEDERAL WORK-STUDY (FWS)........................................................................................................................... 3-179

Chapter 7--Packaging Aid...................................................................... 3-183

DIRECT/DIRECT PLUS LOAN PACKAGING CONSIDERATIONS.........................................................................................3-185 PELL GRANTS AS FIRST SOURCE OF AID................................................................................................................................ 3-185 PACKAGING RULES.......................................................................................................................................................................... 3-186 ESTIMATED FINANCIAL ASSISTANCE (EFA)............................................................................................................................3-187 PACKAGING AID FOR CHILDREN OF IRAQ & AFGHANISTAN SOLDIERS.....................................................................3-189 PACKAGING WHEN CHOOSING NOT TO BORROW SUBSIDIZED OR UNSUBSIDIZED DIRECT LOANS...........3-190 PACKAGING TEACH GRANTS.......................................................................................................................................................3-190 CONSIDERING GRANTS AND SUBSIDIZED LOANS FIRST.................................................................................................3-191 FSEOG & PELL LEU...........................................................................................................................................................................3-192 SUBSTITUTING FOR THE EFC.......................................................................................................................................................3-192 RECALCULATION...............................................................................................................................................................................3-196 CROSSOVER PERIODS.....................................................................................................................................................................3-198 PACKAGING VETERANS BENEFITS, AMERICORPS, VOCATIONAL REHABILITATION FUNDS, & BIA GRANTS...................................................................................................................................................................3-200 TREATMENT OF OVERAWARDS...................................................................................................................................................3-202 APPENDIX A ? FEDERAL EDUCATION BENEFITS TO BE EXCLUDED FROM EFA AS LISTED IN SECTION 480(C) OF THE HIGHER EDUCATION ACT................................................................................3-203

Introduction

Glossary-Acronyms CFR DCL

i

This volume of the Federal Student Aid (FSA) Handbook discusses how to calculate, award, and disburse the proper amounts for the various Title IV programs.

PROGRAM AND SYSTEMS INFORMATION ONLINE

FSA Download FSA Download has moved from its previous webpage (. ) to IFAP. To access FSA Download materials, go to the "Software and Other Tools" page on the IFAP homepage (). The materials include:

Software: ? Direct Loan tools ? EDconnect ? EDExpress for Windows ? SSCR for Windows

Technical References and User Guides for: ? CPS (ISIR, Summary of Changes, etc.) ? COD ? Electronic Data Exchange ? EDExpress Packaging

? Federal Registers ? Electronic Announcements ? Dear Partner/Colleague Letters ? FSA Assessment modules

Comments? Questions? If you have any comments or questions regarding the FSA Handbook, please contact Research and Publications via email at fsaschoolspubs@.

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RECENT CHANGES

Here are some of the significant changes to Volume 3 for the 2019-20 award year:

Chapter 1

? Updated information on the COD Technical Reference and the COD School Relations Center.

? Clarified that only the first retake of any previously passed course is potentially eligible for Title IV aid in the Retaking Coursework in Term Programs section.

? Added guidance on the circumstances under which a single-term, singledisbursement FSEOG award may be allowed.

? Added new hyperlink to Retaking coursework FAQs website.

Chapter 2

? Emphasized that because students are often unaware of the dependent care allowance, schools should make the provisions of this allowance clear in the counseling process.

? Added HEA and Electronic Announcement (EA) citations to Limitation to tuition and fees COA citation section.

Chapter 3

? Updated Pell award amounts throughout chapter.

? Added guidance on how to certify eligible students for the Children of Fallen Heroes Scholarship Act on the COD web site, by marking the CFH indicator.

? Added technical guidance and EA hyperlink to Pell Grant Administrative Cost Allowance discussion.

? Added clarifying guidance to prohibition on concurrent enrollment and Pell Grant section.

? Added EA and COD Technical Reference citations to Year-Round Pell & IASG guidance.

Chapter 4

? Updated percentage figures in The Sequester and TEACH Grants section.

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DCL CFR Glossary Acronyms Chapter 5

? Added section with contact information for the Student Loan Support Center.

? Described new process for accessing COD Technical Reference (moved from FSA Download website) in the DL Tools for Windows section.

? Added new graphic box describing the effect of the Sequester on loans, including EA citation.

? Added new guidance addressing the question: Who can take out parent PLUS loans?

? Added additional information on administering the 150% limit for loans (SULA).

? Added new subsection to Effect of Overborrowing then Regaining Eligibility section: Correcting Direct Subsidized Loan or Direct Unsubsidized Loan awarding errors.

Chapter 6

? Clarified that no Perkins disbursements may be made after June 30, 2018 and added EA citation to Perkins Loans section.

? Clarified guidance in Working During Periods of Nonattendance subsection: Students may potentially be eligible for FWS funds prior to enrolling or beginning a program at your school, if they have applied and been accepted for future enrollment at your school.

Chapter 7

? Clarified that IASG is never considered EFA for packaging purposes, although the total aid package still must abide by COA limitations, and added example.

? "Award letters" are now referred to as "financial aid offers," by FSA.

Introduction

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Glossary CFR DCL

Academic Calendar, Payment Periods, & Disbursements

1 CHAPTER

Award limits are generally connected to a period of time and to credit or clock-hours attended. For instance, all of the programs except Federal Work-Study (FWS) have a maximum amount that can be awarded for an academic year or award year. Measurement of time is important for another reason--in most cases, awards from the Federal Student Aid (FSA) programs must be paid in at least two installments. For most programs, the amount and timing of the payments is

based on the academic terms or payment periods in the program.

CHAPTER 1 HIGHLIGHTS

Academic Year requirements Academic calendars & terms Payment periods Grant programs Standard and nonstandard terms Clock-hour and non-term credit-hour Direct Loan program Standard terms and substantially equal nonstandard terms Clock-hour, non-term credit-hour, and nonstandard terms not substantially equal in length

"Successfully completes" "Substantially equal" terms Direct Assessment payment periods Disbursement issues Payment period completion requirements Timing of disbursements Related topics Payment periods when student re-enters a program after withdrawing--see Volume 5, Chapter 2. Annual loan limit progression--see Volume 3, Chapter 5.

ACADEMIC YEAR REQUIREMENTS

Every eligible program, including graduate programs, must have a defined academic year. The academic year is one component used in determining the student's eligibility for Title IV aid.

A school may have different academic years for different academic programs. For example, a school may choose to define the academic year for a term-based program differently from a non-term program. In some cases, the definition must be different, such as in the case of a clock-hour program and a credit-hour program. For FSA purposes, the academic year is defined in weeks of instructional time and for undergraduate programs in credit or clock-hours. The program's academic year does not have to coincide with a program's academic calendar.

A school may treat two versions of the same academic program (day and night, for example) as separate programs and define different academic years for each version. If your school establishes separate versions of a program, with different academic years, but allows individual students to take courses from both versions, your school must be able to demonstrate in which program the student is actually enrolled. Generally, to be considered enrolled

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Glossary CFR DCL

in a particular program or version of a program, a student must be taking the majority of his or her coursework in that program. Although a school may have different academic years for different programs, it must use the same academic year definition for all FSA awards for students enrolled in a particular program, and for all other FSA program purposes.

Weeks of instructional time in an academic year

An academic year for a credit-hour or direct assessment program must be defined as at least 30 weeks of instructional time, and for a clock-hour program, at least 26 weeks of instructional time. The number of weeks of instructional time is based on the period that begins (generally, see below for an exception) on the first day of classes in the academic year and ends on the last day of classes or examinations.

Schools that provide 2- or 4-year associate or baccalaureate degree programs may apply to ED if they want to establish a full academic year of less than 30 weeks of instructional time. ED is permitted to grant a reduction for good cause to no less than 26 weeks of instructional time. These requests are handled on a case-by-case basis (send requests to your School Participation Divisions).

For all FSA programs, a week of instructional time is any period of 7 consecutive days in which at least 1 day of regularly scheduled instruction, examination, or (after the last day of classes) at least 1 scheduled day of study for examinations occurs. Instructional time does not include periods of orientation, counseling, homework, vacation, or other activity not related to class preparation or examination. Therefore, the weeks of instructional time may be less than the number of calendar weeks that elapse between the first day of classes and the last day of classes or examinations. Note that the Department has not set a regulatory standard for the number of hours of instructional time that make up one day of instruction. This has been left to the reasonable interpretation of schools and their accrediting agencies.

Although most programs are at least one academic year in length, some eligible programs are shorter than an academic year. See Volume 2, Chapter 2 for more detail on the requirements for such programs.

Weeks of instructional time:

? Cannot overlap, and a school cannot use a single day of scheduled instruction, exams, or study time to create more than one week of instruction;

? May begin and end on a day other than Monday, provided that each week of instructional time comprises a seven consecutive day period (for example, a Wednesday through the following Tuesday) which includes at least one day of scheduled instruction, exams, or study time, as required by the regulations; and

? May begin up to six days prior to the first day of scheduled instruction or exams in a payment period.

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