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Federal Pell Grant Program - Calculating the Federal Pell Grant

AwardYear: 1995-1996
EnterChapterNo: 4
EnterChapterTitle: Federal Pell Grant Program
SectionNumber: 2
SectionTitle: Calculating the Federal Pell Grant
PageNumbers: 9-64


In this section, we will review the basic steps in calculating a Pell
award. These steps, in effect, adjust the Pell award to take into
account the student's cost of attendance for the academic year, the
student's enrollment status, the ability to contribute to his or her
education (EFC), the amount of coursework taken in the award year,
and the length of the student's enrollment during the academic year.
The regulations published on November 1 revised the calculations,
effective July 1, 1995.

[[See Section Three for special considerations]]
Pell calculations for most programs can be performed by following the
steps in this section. However, there are some situations which
require further adjustments. These situations are discussed in
Section Three, "Special Program Considerations." Check that
section to see if these special considerations apply to any of the
programs at your school.

BASIC CONCEPTS

Before we explain the Pell calculation procedures, some basic
concepts need to be defined.

[[Scheduled Award]]
A primary concept in the Federal Pell Grant Program is the
"Scheduled Award," which is the amount of a Pell a student receives
during an academic year for a given cost of attendance and EFC,
assuming the student is enrolled FULL TIME for a FULL academic
year. For example, a full-time student with a cost of attendance of
$6,000 for a full academic year and a nine-month EFC of 0 may be
eligible for the maximum Scheduled Award ($2,340 for 1995-96). A
student will receive less than a Scheduled Award if he or she is
enrolled less than full time or is enrolled for less than a full
academic year. For instance, if a student attends two semesters as a
half-time student at a semester-hour school, the student would
receive half a Scheduled Award. Or, if the student enrolled full time
in a program late in the award year and only completed half of an
academic year in that program, he or she would receive no more
than half of a scheduled Award.

The concept of the Scheduled Award has always been important
because it has limited the student to a maximum payment for an
award year. The Scheduled Award cannot be exceeded, even if the
student transfers to another school or attends a summer session.

[[Annual Award]]
[[Final Rule 11-1-94]]
The annual award is the maximum amount (from the appropriate
Payment or Disbursement Schedule) a student would receive during
a full academic year for a given enrollment status, EFC, and cost of
attendance. Note that for a full-time student, the annual award will
be the same as the Scheduled Award.

[[Award Year]]
The award year begins on July 1 of one year and ends on June 30 of
the next year.

1995-96 Award Year = ======

1995
+---------------------------------+===================+
January 1 July 1 December 31

1996
+====================+--------------------------------+
January 1 June 30 December 31


As already noted, a student cannot be paid more than one Scheduled
Award for an award year. The regulations provide that on a
case-by-case basis, a student may receive up to a second Scheduled
Award during a single 12-month period in certain circumstances.
However, no awards can be made under this provision unless the
Department determines that sufficient funds are available. There is
no funding for payment of a second Scheduled Award for 1995-96;
therefore, students will not be able to receive more than one
Scheduled Award for the 1995-96 award year.

[[Academic Year]]
The academic year is used to measure the amount of coursework the
student will complete during the award year. The school must
define the academic year for each program of study; once it has
defined the academic year for that program, it must use that
definition for all SFA purposes. An academic year must contain at
least 30 weeks of instructional time; within the weeks of the
academic year, a full-time student must complete at least 24
semester or trimester hours or 36 quarter hours at a school
measuring program length in credit hours, or at least 900 clock
hours at a school measuring program length in clock hours.

[[Final Rule 11-29-94]]
The General Provisions regulations published on November 29,
1994 provide a definition of academic year and allow schools to
apply for a waiver of the 30 week minimum. See Chapter Three,
Section One for more information on the definition of academic
year.

[[Calendar weeks vs. weeks of instructional time]]
You should note that for the Pell calculations, you will need to
determine how many weeks of instructional time are in the program
or academic year, or in each term if the school uses terms. In some
cases, the weeks of instructional time will not be the same as the
number of calendar weeks; Chapter Three explains how to
determine weeks of instructional time. Be sure that you do not use
calendar weeks when you should be using weeks of instructional
time.

[[Different academic year for different programs]]
Depending on the academic nature of the programs involved, a
school may define an academic year differently for different
programs of study. For instance, it may set an academic year of 900
clock hours and 30 weeks in one program and 1,200 clock hours and
40 weeks in another. The school may even use a different academic
year for an evening program, as opposed to a day version of the
same program, as long as each academic year meets the minimum
requirements established for an academic year.

[[Standard term]]
[[Final Rule 11-1-94]]
Term-based schools may have either STANDARD TERMS or
NONSTANDARD TERMS. Standard terms are semesters,
trimesters, or quarters, with two semesters or trimesters or three
quarters in the fall through spring terms. In addition, the full-time
enrollment status for the term must be at least 12 credit hours. Any
other type of term is a nonstandard term. Nonstandard term has
sometimes been used to refer only to terms of unequal length, but
under this definition even terms of equal length may be nonstandard
terms.

Now that some basic concepts have been defined, we can move on to
the process of calculating a payment for a payment period. The
regulations specify five different formulas for calculating Pells; the
formula you use depends on the type of program. However, each
formula has the same basic steps. We will begin by explaining how
to determine which formula to use. We will then describe the basic
calculation steps, and explain how the steps vary for different
formulas. Finally, examples of calculations are provided.

CHOOSING A FORMULA

[[Formula 4 or 5]]
Formula 4 or 5: Three of the formulas (Formulas 1, 2, and 3) are
used for credit-hour, term-based programs. Of the remaining two
formulas, Formula 4 is used for all clock-hour programs and for
nonterm credit-hour programs, and Formula 5 is used for students
enrolled only in correspondence courses (not including residential
components of correspondence programs). Calculations for
correspondence programs are discussed separately beginning on
page 4-31 of this section.

[[Formula 3]]
Formula 3: A school can use Formula 3 to calculate Pells for any
credit-hour, term-based program. However, if the program meets
certain requirements, Formula 1 or 2 may also be used. If the
program meets the requirements for more than one formula, the
school may choose which formula to use.

[[Formula 1 or 2]]
Formula 1 or 2: To qualify for Formula 1 or 2, the program must-

- use an academic calendar that includes two semesters or
trimesters (fall and spring) or three quarters (fall, winter, and
spring);

- not have overlapping terms (that is, the beginning and end of
the term must be the same for all students in the program); and

- define 12 credit hours as full-time enrollment for each term.

If the program provides at least the statutory minimum of weeks for
an academic year (30 weeks of instructional time, unless the school
has received a waiver from the Department) in the fall through
spring terms, Formula 1 may be used. If it does not provide this
minimum in the fall through spring terms, Formula 2 may be used.
Note that in both cases the school may decide to use Formula 3
instead.


No matter what formula you use, there are five basic steps to
calculating a Pell award:

[[Step 1]]
Determine Enrollment Status

[[Step 2]]
Calculate Cost of Attendance

[[Step 3]]
Determine Annual Award

[[Step 4]]
Determine Payment Periods

[[Step 5]]
Calculate Payment for a Payment Period


We will now discuss each of these steps in more detail.

DETERMINING ENROLLMENT STATUS

The student's enrollment status is based on the number of credit or
clock hours for which the student enrolls. It determines which cost
components are used to calculate the student's Pell cost of
attendance (COA) and, for some programs, establishes which
Payment or Disbursement Schedule is used to determine the student's
annual award.

[[Enrollment status change during year]]
If a student's enrollment status changes during the year, the school
may have to recalculate the student's Pell payment based on the
student's new enrollment status. See Section Five of this chapter for
a discussion of when a school is required to recalculate based on a
change in enrollment status.

For credit-hour programs with terms, the school must determine
whether the student is enrolled full-time, three-quarter-time, half-
time, or less than half-time. This allows the school to determine
which Payment or Disbursement Schedule it needs to use. For
clock-hour programs and for credit-hour programs without terms,
the school only needs to determine if the student is enrolled at least
half-time or less than half-time, so that it can calculate the COA
correctly.

[[School defines full-time enrollment]]
If the school has standard terms (i.e., semesters, trimesters, or
quarters), it may establish its own standards for determining
enrollment status for each of its academic programs, provided its
standards meet the minimum requirements defined in the
regulations. Note that the school's academic standard may differ
from the enrollment standard used by the financial aid office for
SFA purposes. For example, the school may define full-time as six
hours during the summer; however, the financial aid office uses 12
hours as full-time for all terms including the summer term. The
school must apply its standards consistently to all students enrolled
in the same program of study, for all SFA purposes.

The following charts show the minimum regulatory requirements for
each enrollment status classification for students not enrolled in
correspondence coursework. For standard term-based programs, if a
school's financial aid office establishes full-time status as greater
than 12 semester or quarter hours, the financial aid office may still
define a three-quarter-time enrollment status as nine semester or
quarter hours and a half- time enrollment status as six semester or
quarter hours.

Enrollment Status Minimum Requirements
(Standard Term, Credit-Hour Programs) -

To Be Considered: A student must take at least --

Full-time: 12 semesters or quarter hours per term

Three-quarter-time: 9 semester or quarter hours per term

Half-time: 6 semester or quarter hours per term

Less than half-time: Less than half the workload of the minmum
full-time requirement

Enrollment Status Minimum Requirements --
(Clock-Hour Programs or Nonstandard-Term or Nonterm Credit-
Hour Programs)

To Be Considered: A student must take at least -

Full-time:
24 semester hours or 36 quarter hours per
academic year, or prorated equivalent for
program less than an academic year
or
24 clock hours per week
Less than half-time:
Less than half the workload of the minimum
full-time requirement

[[Enrollment status for nonstandard terms]]
If a school's academic calendar contains nonstandard terms*3*, the
school must determine the student's enrollment status for each
nonstandard term. To determine enrollment status for a nonstandard
term, the school must first determine the number of credit hours
required for full-time enrollment status using the following formula:

Weeks of instructional time in
Credit hours in the nonstandard term year
the academic X ---------------------------------------
year Weeks of instructional time in
program's definition of academic year


If the resulting number is not a whole number, it is rounded up to
the next whole number. After the school has determined the number
of credit hours required for full-time enrollment, the school can then
determine the less-than-full-time status for the nonstandard term
using the following formula:

Credit hours student takes in the nonstandard term
----------------------------------------------------------------
Credit hours required for full-time status in the nonstandard term


The resulting fraction is then matched with the appropriate
less-than-full-time status classification. The fraction must equal or
exceed the enrollment status classification. For example, two-thirds
would correspond to a half-time enrollment status. The following
example illustrates how the enrollment status for a nonstandard term
is determined.

EXAMPLE:

The academic calendar for a student's program of study consists of
four 8-week terms. The school defines the program's academic year
as 24 semester hours and 32 weeks of instructional time. A full-
time student is expected to complete at least 24 semester hours
during an academic year.

The minimum number of semester hours for full-time status during
each of the terms is calculated as follows:

8 weeks
24 semester hours X ----------- = 6 semester hours
32 weeks

Therefore, a student must complete 6 semester hours each term to be
a full-time student.

A student enrolls for four semester hours during the first 8-week
term and for six semester hours during wach of the remaining 8-
week terms. The student's enrollment status for the first term is
calculated as follows:

4 semester hours 4 2
--------------------- = --- = ---
6 semester hours 6 3

Because two-thirds is less than three-quarters but greater than
one-half, the student's enrollment status is half-time.

For the remaining three terms, the student's enrollment status meets
the requirement for full-time (6 semester hours); therefore, the
student is enrolled full-time for those three terms.


STEP 1: DETERMINE ENROLLMENT STATUS

Formula 1, Formula 2, Formula 3:
- Full-time, 3/4-time, 1/2-time, or less than 1/2 time

Formula 4:
- At least 1/2-time or less than 1/2-time


CALCULATING THE COST OF ATTENDANCE

The components used to calculate a student's Pell COA are the same
as those used to calculate the COA for the other SFA programs. See
Section Two of Chapter Two for a list of these components.

[[Cost for full-time for full academic year]]
Although schools must use the same components for calculating a
student's cost for the Federal Pell Grant Program as for the other
SFA programs, the Pell COA is always based on costs for a FULL-
TIME STUDENT FOR A FULL ACADEMIC YEAR. That is, the
amount of each component must always be a full-time, full
academic year cost.

[[Less than half time]]
If the student is enrolled less than half-time, the aid administrator
may include in the Pell COA only those cost components allowable
for less-than-half-time enrollment. See Chapter Two for more
information, and for other restrictions on COA components.

For students who are less than half time, COA may include only:
+ tuition and fees;
+ an allowance for books and supplies;
+ transportation (but not miscellaneous expenses); and
+ an allowance for dependent care and expenses

The major difference between the COA for Pell and for other SFA
programs is that under Pell, costs for programs or enrollment
periods longer or shorter than an academic year must be prorated so
that they apply to one full academic year.*4* This is true for both
components of the academic year definition, the number of weeks
and the number of clock/credit hours: if the program or period of
enrollment differs from the academic year in either component, the
costs must be prorated to determine the Pell COA.

For purposes of this proration, COA components are now grouped
into two categories:

[[Costs: credit/clock hours]]
1. Costs associated with credit or clock hours (that is, costs
associated with the educational program)--

- Tuition and fees
- Books and supplies*5*
- Loan fees*5*

The costs associated with credit hours DO NOT HAVE TO BE
PRORATED if they represent the cost for a full-time student to
attend a full academic year (at least 24 semester hours, 36
quarter hours or 900 clock hours).

[[Costs: weeks of instructional time]]
2. Costs associated with weeks of instructional time--

- Room and board*5*
- Miscellaneous expenses*5*
- Disability expenses*5*
- Transportation*5*
- Dependent care*5*
- Study abroad
- Reasonable costs associated with employment as part of a
cooperative education program

Costs associated with weeks DO NOT HAVE TO BE
PRORATED if they represent the cost for a full-time student to
attend a full academic year (at least 30 weeks of instructional
time).

Although the law specifies one combined allowance for books,
supplies, transportation, and miscellaneous personal expenses, the
aid administrator must establish separate cost categories for books
and supplies and for transportation and miscellaneous personal
expenses, in order to properly prorate the costs.

[[Credit/clock hour proration]]
To prorate costs associated with credit/clock hours, use the following
formula:

Credit/clock hours in program's definition
of academic year
Costs X -------------------------------------------
Credit/clock hours for which costs apply

[[Week proration]]
Prorate costs associated with weeks of instructional time by using
this formula:

Weeks of instructional time in program's
definition of academic year
Costs X ---------------------------------------------
Weeks of instructional time for
which costs apply


The student's Pell COA is the sum of the costs (prorated if
necessary) for components associated with credit hours and
components associated with weeks of instruction. This Pell COA
must be used when determining the amount of the student's annual
award. Following are some examples showing how to determine
full-time, full-year costs.

EXAMPLE 1:

A school's academic calendar consists of two 14-week semesters,
providing 28 weeks of instructional time (the school was not granted
a waiver of the 30-week requirement). A student is enrolled in a
program for two semesters. The school defines the academic year
for the program as 24 semester hours and 30 weeks of instructional
time. The school has determined that the student's full-time costs
for the two semesters include $2,500 tuition and fees, $6,000 room
and board, $450 books and supplies, $250 transportation, $1,200
dependent care, and $600 miscellaneous personal expenses.

Credit hour costs: Week costs:

$2,500 tuition and fees $6,000 room and board
+ $450 books and supplies +$250 transportation
-------- +$1,200 dependent care
=$2,950 total +$600 misc. personal
expenses
---------
= $8,050 total

Because the costs have been determined for a period meeting the
minimum number of credit hours for full-time for a full academic
year (24 semester hours), the costs associated with credit hours
(tuition and fees, books and supplies) do not have to be prorated.
However, because this period is shorter than the academic year
definition in number of weeks, the costs associated with weeks
(room and board, transportation, dependent care, and miscellaneous
personal expenses) must be prorated:

30 weeks
$8,050 X ------------------ = $8,625
28 weeks

Therefore, this student's Pell COA for an academic year is $2,950 +
$8,625 = $11,575.

EXAMPLE 2:

A student is enrolled in a 25-week, 750-clock-hour program, with
the following costs: $3,000 tuition and fees, $2,500 room and board,
$300 books and supplies, $200 transportation, and $400
miscellaneous personal expenses. The school defines the academic
year for this program as 900 clock hours and 30 weeks of
instructional time.

Clock hour costs: Week costs:

$3,000 tuition and fees $2,500 room and board
+$ 300 books and supplies +$ 200 transportation
-------- +$ 400 miscellaneous
=$3,300 total personal expenses
--------
= $3,100 total

Because the student's program is shorter than the academic year
both in weeks and clock hours, both types of costs must be prorated:

900 clock hours
Clock hour costs $3,300 X -------------------- = $3,960
750 clock hours

30 weeks
Week costs $3,100 X ----------- = $3,720
25 weeks

Therefore, this student's Pell COA is $3,960 + $3,720 = $7,680.


[[Actual vs. average cost]]
While schools have the option of determining actual costs for
individual students, most schools prefer to determine the COA by
using an average cost for a group of similar students. (For example,
your school may have different charges for different academic
programs or different charges for in-state vs. out-of-state
students.*6*)

[[Step 2 summary by formula]]
Calculate Pell COA

Formula 1:

+ Full-time, full academic-year costs

Formula 2:

(1) Full-time, full-year costs for tuition, fees, books, supplies,
loan fees

(2) Full-time, full-year costs for room, board, transportation,
miscellaneous personal, dependent care, study abroad, disability-
related, and employment-related cooperative education program
expenses must be prorated upward to obtain costs for a full
academic year according to the following formula:

Weeks of instuctional time in program's
definition of academic year
Costs X ------------------------------------------------
Weeks of instructional time in the
fall through spring terms

+ COA = (1) + (2)

Formula 3 and Formula 4:

+ Full-time, full academic year costs

+ If the student's program of study or enrollment period is longer
or shorter than an academic year, full-time costs are prorated
upward (or downward) using the following formulas:

(1) For tuition, fees, books, supplies, and loan fees:

Hours in program's definition
of academic year
Costs X -------------------------------------
Hours in student's program of study

(2) For room, board, transportation, miscellaneous personal,
dependent care, study abroad, disability-related, and
employment-related cooperative education program expenses:

Weeks of instructional time in program's
definition of academic year
Costs X ---------------------------------------------
Weeks of instructional time in the enrollment
period to which the costs apply

+ COA = (1) + (2)


DETERMINING THE ANNUAL AWARD

Once you have figured the student's COA, you can use the Payment
Schedule or appropriate part-time Disbursement Schedule*7* to
look up the student's annual award. As mentioned earlier, the
annual award is the maximum amount a student would receive
during a full academic year for a given enrollment status, EFC, and
cost of attendance. For students enrolled in clock-hour or nonterm
credit-hour programs, the annual award is always determined from
the full-time Payment Schedule, even if the student is attending
less than half time.

PLEASE REMEMBER THAT YOU DO NOT HAVE THE
DISCRETION TO REFUSE TO PAY AN ELIGIBLE PART-TIME
STUDENT.

[[Step 3 summary by formula]]
DETERMINE ANNUAL AWARD

Formula 1, Formula 2, Formula 3:

+ If the student's enrollment status is full-time, the annual award
is taken from the full-time Payment Schedule (Sceduled
Award). If the student's enrollment status is 3/4-time, 1/2-time,
or less than 1/2-time, the annual award is taken from the
appropriate part-time Disbursement Schedule.

Formula 4:

+ Always taken from full-time Payment Schedule (Scheduled
Award)


DETERMINING THE PAYMENT PERIODS

The program's academic year is divided into payment periods. Pell
awards must be paid in installments over the academic year to help
meet the student's cost in each payment period. The payment period
determines when Pell funds are disbursed and the exact amount to
be disbursed.

[[Term programs]]
For term programs, the payment period is the term. However, if the
term program is measured in clock hours, the student must complete
all hours scheduled for a term before receiving another
disbursement. See "Terms With Clock Hours" in this section for
more information on how to determine subsequent payment periods
if the student does not complete all clock hours in a term.

[[Nonterm programs]]
For nonterm programs, the school must define, in writing, the
payment periods as measured in clock or credit hours for each
program. The regulations require that there be at least two equal
payment periods for programs that are shorter than an academic
year, or at least two equal payment periods in each academic year
for programs longer than an academic year.

[[Less than AY]]
[[Equal to or longer than AY]]
If the program of study is shorter than an academic year, each
payment period is the period of time in which the student completes
half the credit or clock hours in the program. If the program of
study is equal to or longer than an academic year, each payment
period is the period of time in which the student completes half the
credit or clock hours in the academic year. If the number of credit
or clock hours to be completed in the final academic year is fewer
than the number in the academic year, each payment period is the
period of time in which the student completes either half the
academic year or all of the remaining hours in the program,
whichever is shorter.

[[More frequent payment periods]]
Regulations also permit a school to establish more frequent payment
periods for its programs of study. For example, a school may choose
to use monthly payment periods. The payment periods must be
equal in number of credit or clock hours, except that a final payment
period for a program may be shorter than the other payment periods.

For all nonterm programs, the payment period ends when the
student has completed all the credit or clock hours in the payment
period. Because the length of a payment period (measured in weeks
of instructional time) is based on what a full-time student is
expected to complete, part-time students will take longer than full-
time students to complete each payment period. However, as we
will discuss in Step 5, the number of weeks of instructional time that
is used in the formula to calculate the payment for the payment
period will remain the same. The following examples will help to
illustrate these minimum requirements for determining the payment
period for nonterm programs.

NONTERM PAYMENT PERIOD EXAMPLES
EXAMPLE 1

Andrea is enrolled in a 600-clock-hour program of study. The
school defines the program's academic year as 900 clock hours and
30 weeks of instructional time. Because Andrea's program is shorter
than an academic year, the two payment periods would be based on
the length of her program (in clock hours). Each payment period is
one-half the program, or 300 clock hours.

|----------------------Academic Year------------------|
|---1st p.p.----|------2nd p.p.------|

EXAMPLE 2:

Bill in enrolled in a 900-clock-hour program of study. The school
defines the program's academic year as 900 clock hours and 30
weeks of instructional time. Because Bill's program is equal to an
academic year, the two payment periods are based on the length of
the academic year (in hours). Each payment period is half an
academic year, or 450 clock hours.

|----------------------Academic Year------------------|
|---------1st p.p.-----------|---------2nd p.p.----------|

EXAMPLE 3:

Charles is enrolled in a 1,200-clock-hour program of study. The
school defines the program's academic year as 900 clock hours and
30 weeks of instructional time. Because Charles' program of study
is longer than one academic year, the payment periods in the first
year are based on the length of the academic year. Each of these
payment periods is 450 clock hours (half the academic year). After
the first year, only 300 clock hours remain, less than an academic
year. Because 300 hours is less than half the academic year, the
remaining 300 clock hours is the third and final payment period.

|--------------------Academic Year------------------|
|-------1st p.p.-----------|----------2nd p.p.----------|-------3rd p.p.----|

[[Step 4 summary by formula]]
STEP 4: DETERMINE PAY PERIODS

ACADEMIC YEAR
|----1/2----|----1/2----|

FORMULA 1, FORMULA 2, FORMULA 3:

+ Payment period is the academic term

FORMULA 4:

For nonterm programs:

+ Minimum of 2 equal payment periods required for programs
shorter than an academic year, or 2 equal payment periods in
each academic year for programs longer than or equal to an
academic year

+ Length of payment period measured in credit or clock hours

(1) Program shorter than an academic year:
+ Payment period = time it takes a full-time student to
complete 1/2 of the program in credit or clock hours

(2) Program = an academic year:
+ Payment period = time it takes a full-time student to
complete 1/2 of the academic year in credit or clock hours

(3) Program longer than an academic year:
+ First and second payment periods same as (2) above
+ Subsequent full academic years same as (2) above
+ If the remaining portion of the program is shorter than an
academic year, each payment period is either 1/2 the
academic year or the time it takes a full-time student to
complete the remaining hours in the program, whichever is
completed first.

For term-based, clock-hour programs:

+ Payment period is the academic term, but extends for as long
as it takes the student to complete the clock hours for which
payment has been made

+ If the payment period extends into another term:

+ Subsequent payment period consists of only those hours not
included in the previous term

+ Remaining clock hours are accounted for by an additional
payment period at the end of the student’s program of study


CALCULATING THE PAYMENT FOR A PAYMENT PERIOD

Once you have determined the payment period, you can determine
how much of the annual award the student will receive for that
payment period. A student may receive a Pell payment only for
those terms, or payment periods, in which the student is enrolled.
For some students, the total disbursements for all payment periods
within the award year will equal the amount of the Scheduled
Award. However, students who attend for less than an academic
year (in either clock/credit hours or weeks of instructional time) will
not receive a full Scheduled Award. This may occur if the student
enrolls for only part of the year, attends part-time, or if the program
is less than an academic year in length. These enrollment variations
are taken into account in the calculation of the student's payment for
the payment period. The four calculation formulas discussed in this
section account for these variations differently; therefore, we will
describe the calculation for each formula separately.

[[Formula 1]]
For a program using Formula 1, a student will attend less than an
academic year only if he or she enrolls part-time or does not enroll
in all terms in the academic year. The adjustment for part-time
enrollment is made in determining the annual award (by using the
appropriate part-time Disbursement Schedules). The adjustment for
a student not enrolling in all terms is made by dividing the annual
award evenly between the terms. If the student does not enroll in a
term, he or she will not receive that part of the award. Therefore, to
determine the payment for a payment period, divide the annual
award by the number of payment periods in the academic year (two
for semesters or trimesters, three for quarters). However, if the
school has a summer term, it may wish to use an alternate
calculation that spreads the award over the summer term as well.
See "Summer Terms" later in this section for more information.

Annual Award
-----------------------------------------
Number of payment periods in the
program’s definition of academic year

[[Formula 2]]
For a program using Formula 2, a student will attend less than an
academic year in credit hours only if he or she enrolls part-time or
does not enroll in all terms (fall through spring) in the academic
year. As for Formula 1, the adjustment for part-time enrollment is
made in determining the annual award (by looking up the award on
the appropriate schedule). Because the fall through spring terms
provide fewer than 30 weeks of instructional time, the school must
always adjust for less than an academic year in weeks by prorating
the annual award using the following formula:

Weeks of instructional time in program’s
definition of academic year
Annual Award X ------------------------------------------------
Weeks of instructional time in fall
through spring terms

Then, to adjust for students not attending all terms, the award is
divided evenly between terms. To determine the payment for one
payment period, divide the PRORATED annual award by the
number of terms in the year (two, for semesters or trimesters, three
for quarters). If the school has a summer term, it may use the
alternate calculation mentioned earlier to distribute the award over
all terms. See "Summer Terms" later in this section.

The following example shows how to prorate the annual award
under Formula 2:

EXAMPLE:

The school’s academic calendar consists of two 14-week semesters.
During the award year Alan is enrolled half-time for two 14-week
semesters (fall and spring). The school defines the academic year
for the program as 24 semester hours and 30 weeks of instructional
time. His annual award (taken from the half-time Disbursement
Schedule) is $825. Because the number of weeks of instructional
time for Alan’s period of enrollment is less than 30 weeks, his
annual award must be prorated:

28 weeks
$825 X ---------- = $770
30 weeks

This prorated annual award can then be divided by two (the number
of terms in the year) to determine the payment for one payment
period: $385.

[[Formula 3]]
Under Formula 3, the school also adjusts for less than an academic
year by using enrollment status in determining the annual award
and by distributing the award over terms. Because the program uses
nonstandard terms (which may not be of equal length), the award
cannot simply be divided evenly among the terms. Instead, the
school must multiply the annual award by a fraction representing the
proportion of an academic year the payment period contains. This
adjusts for the period of enrollment being less than an academic year
either because the student misses a term or because the terms
provide less than an academic year. To calculate a student's payment
for a payment period, the school uses the following formula:

Weeks of instructional time in term
Annual Award X ------------------------------------------------
Weeks of instructional time in program’s
definition of academic year

If the resulting amount is more than 50 percent of the annual award,
the school must make the payment in at least two disbursements.
A single disbursement may never be more than 50 percent of the
annual award.

[[Formula 4]]
Unlike the preceding three formulas, no adjustment for enrollment
status is made in determining the annual award under Formula 4.
Instead, a comparable proration based on hours enrolled must be
performed. The calculation for the payment period adjusts the
annual award both if the student will be enrolled in fewer
credit/clock hours than in a full academic year (an adjustment
mainly handled by enrollment status in the other formulas) and if
the student will be attending fewer weeks than a full academic year.
To adjust for fewer weeks, the school must multiply the annual
award by the lesser of:

Weeks of instructional time for a full-time
student to complete hours in the program
---------------------------------------------------
Weeks of instructional time in program's
definition of academic year

OR

Weeks of instructional time for a full-time student
to complete hours in the academic year
------------------------------------------------------------
Weeks of instructional time in program's
definition of academic year

OR

ONE (1)

Note that the result of this multiplication can never be greater than
the original annual award. Because the annual award has not been
adjusted for enrollment status, the fractions use the weeks of
instructional time for a FULL-TIME STUDENT to complete the
hours in the program or academic year. The school must determine
the weeks of instructional time it takes a full-time student to
complete the hours based on the timeframe required for the majority
of its full-time students to complete the program or academic year,
not student by student.

Then, to adjust for fewer clock/credit hours, the school must
multiply this adjusted annual award by the following fraction:

Credit/clock hours in a payment period
-----------------------------------------------
Credit/clock hours in program's
definition of academic year

The resulting amount is the payment for a payment period.
However, if this amount is greater than 50 percent of the annual
award (which will only occur in a term-based program), the school
must make the payment in at least two disbursements. A single
disbursement may never be more than 50 percent of the annual
award. The following example illustrates how to calculate a payment
under this formula.

EXAMPLE:

Drew is expected to complete a 720-clock-hour program over 24
weeks of instructional time as a full-time student. The school
defines the program's academic year as 900 clock hours and 30
weeks of instructional time. Each of the payment periods for Drew's
program is 360 clock hours. Drew's annual award is $1,850. The
school calculates the expected disbursement for each term as
follows.

First, the school must determine the lesser of the two numbers to be
used in the formula (number of weeks in the program divided by
number of weeks in the academic year, or 1). In this case, the
number of weeks of instructional time for a full-time student to
complete the hours in the program is less than the number of weeks
in the academic year. Therefore, the lesser number is the fraction:

24 weeks in the program 4
------------------------------------ + ----
30 weeks in an academic year 5

Drew's annual award is multiplied by this fraction:

$1,850 x 4/5 = $1,480

The school then multiplies this adjusted award by the second
fraction (clock hours in payment period divided by clock hours in
academic year):

360 clock hours
$1,480 X ------------------ = $592 payment for each
900 clock hours payment period

The total disbursements for the award year equal $1,184 ($592 times
two payment periods).

[[Step 5 summary by formula]]
STEP 5: CALCULATE PAYMENT FOR A PAYMENT PERIOD

FORMULA 1:
+ For each payment period:

Annual Award
------------------------------------------------------
Number of payment periods in the program's
definition of academic year

FORMULA 2:
+ Proration required
+ For each payment period:

Weeks of instructional time in 2 (if semesters
Annual the fall through spring terms or trimesters)
Award X --------------------------------- ÷ OR
Weeks of instructional time in 3 (if quarters)
program's definition of
academic year

FORMULA 3:
+ For each payment period:

Annual Weeks of instructional time in the term
Award X ----------------------------------------------
Weeks of instructional time in program's
definition of academic year

+ A single disbursement may not exceed 50% of the annual
award

FORMULA 4:
+ For each payment period:

(1) Annual award x the lesser of :

Weeks of instructional time for a full-time
student to complete hours in program
-----------------------------------------------
Weeks of instructional time in
program's definition of academic year

OR

Weeks of instructional time for a full-time
student to complete hours in academic year
------------------------------------------------
Weeks of instructional time in program's
definition of academic year

OR

One (1)

(2) The results of (1) are then multiplied by:

Hours in a payment period
-----------------------------------------------------
Hours in program's definition of academic year

+ A single disbursement may not exceed 50% of the annual
award

SUMMER TERMS

If a school offers a summer term in addition to the fall through
spring terms, the school may choose to calculate the student's
payment for the summer term by using the same formula used to
calculate the payment for each term within the school's fall, winter,
or spring terms. However, for a program for which the school
calculates awards using Formula 1 or 2, the school may perform an
alternate calculation for all students enrolled in the program that
distributes the annual award over all the terms.

[[Full-time status definition]]
Regardless of the method the school chooses to calculate the
student's summer payment, regulations now require the aid
administrator to apply the school's definition of full-time status
consistently to all SFA programs. In addition, in order to calculate a
student's Pell for the summer under Formula 1 or 2 or under the
alternate calculation, the aid administrator must define full-time
enrollment during the summer as at least 12 credit hours.

[[Alternate calculation]]
To perform the alternate calculation, the school divides the annual
award by the number of terms (including the summer term) in the
award year. If the school chooses this alternate calculation, the
school must use the alternate calculation for ALL STUDENTS
enrolled in the same program of study, increase the number of weeks
of instructional time in the academic year defined for the student's
program to include the number of weeks in the summer term, and
include the costs for the additional term in the Pell COA. The school
may also include the number of credit hours for the additional term
in the academic year defined for the student's program.

If the school does not choose to use the alternate calculation and
calculates the payment for the summer term using Formula 1 or 2,
the school must ensure that the amount of Pell funds the student
receives for the award year does not exceed the Scheduled Award.

[[Summer mini-sessions]]
[[Final Rule 11-1-94]]
If a term-based school offers a series of mini-sessions that overlap
two award years (by "crossing over" the June 30 end date for one
award year), these mini-sessions MAY be combined and treated as
one term. However, schools are no longer REQUIRED to combine
these mini-sessions. The weeks of instructional time in the
combined term are the weeks between the beginning of the first
mini-session and the date the last mini-session will end. The
student's enrollment status for the entire payment period must be
calculated based on either-

- the total number of credits the student is taking for all
sessions, if that number is known when the award is calculated;
or
- a projected number of credits based on the credits the student is
taking for the first session, if the number of credits to be taken
in subsequent sessions is unknown when the award is
calculated.

If the school combines mini-sessions into a single term, a student
may not be paid more than the amount for one payment period for
completing any combination of the mini-sessions.

IMPORTANT: Note that recalculation is required if the student
does not ultimately attend the projected classes in a subsequent
mini-session. See "Change in Enrollment Status" in Section Five of
this chapter.

If the school does not combine mini-sessions into a single payment
period, it must treat each mini-session as a separate nonstandard
term and calculate the payment for each using Formula 3.

CORRESPONDENCE STUDY

Students enrolled in correspondence courses are eligible for aid
under SFA programs only if the courses are part of a program
leading to an associate, bachelor's, or graduate degree.

[[Half-time limit]]
An eligible correspondence program must meet the criteria for an
eligible program (see Chapter Three of this handbook). A nonterm
correspondence program must require at least 12 hours of
preparation per week. A term correspondence program must require
30 hours of preparation per semester hour or 20 hours of preparation
per quarter hour during the term. The school determines the length
of the correspondence program by preparing a written schedule for
the lessons that the student will submit. Students enrolled in
programs of correspondence study are considered to be no more than
half-time students, and thus are limited to no more than half a
Scheduled Award. However, a correspondence student may receive
more than half a Scheduled Award if the correspondence program
includes a required period of residential training or is combined
with class instruction.

Formula 5 is used to calculate payments for a payment period for
students enrolled only in a correspondence program (not including
residential components). There are two versions of Formula 5;
version A is used for nonterm programs, and version B is used for
term-based programs. (For a residential component of a
correspondence program, you must use either Formula 3 or Formula
4.) Formula 5 uses the same basic steps as the other formulas
discussed in this section.

[[Formula 5]]
STEP 1: DETERMINE ENROLLMENT STATUS

As stated above, students enrolled in programs of correspondence
study are considered to be no more than half-time students. A
student enrolled only in a nonterm correspondence program is
always considered to be enrolled half time. For a student enrolled in
a term correspondence program, you must determine whether the
student is enrolled half time (6 or more credit hours in a term) or
less than half time (less than 6 credit hours in a term). Special rules
are used to determine thestudent's enrollment status when the
student is enrolled in a combination of regular and correspondence
coursework. See the chart on page 4-70.

STEP 2: CALCULATE COST OF ATTENDANCE

The COA for correspondence study includes only tuition and fees.
Room and board costs and allowances for books and supplies and
travel may be included only if the student would incur them in
fulfilling a required period of residential training. As always, the
cost must be the full-time, full academic year cost. If the student's
program or period of enrollment is longer or shorter than an
academic year, the cost is prorated using the following formula:

Hours in program's definition of academic year
Costs X ---------------------------------------------------
Hours for which costs apply

Note that since there are no costs associated with weeks of
instructional time in the correspondence COA, the school will have
to prorate the cost only if the number of hours in the program is
shorter or longer than in an academic year.

STEP 3: DETERMINE THE AMMUAL AWARD

The annual award for a student in a nonterm correspondence
program is always taken from the half-time Disbursement Schedule,
because a correspondence student may not receive more than half a
Scheduled Award. For a student in a nonterm correspondence
program, the annual award is determined from the half-time
Disbursement Schedule or the less-than-half-time Disbursement
Schedule, as appropriate.

STEP 4: DETERMINE THE PAYMENT PERIODS

[[Formula 5A]]
For a nonterm correspondence program, there must be
at least two equal payment periods. The first payment period is the
period in which the student completes the lesser of the first half of
the academic year or the program (measured in credit hours). The
second payment period is the period in which the student completes
the lesser of the second half of the academic year or the program. In
addition, the school may not disburse a Pell payment for the first
payment period until the student has completed 25 percent of the
work in the academic year or program, whichever is shorter. It may
not make the second payment until the student has completed 75
percent of the work in the academic year or program.

[[Formula 5B]]
For a term correspondence program, as for other
term-based programs, the payment period is the term. However, you
may not disburse the Pell for a payment period until the student has
completed 50 percent of the lessons or completes 50 percent of the
work for the term, whichever is later.

[[Residential training]]
If the correspondence program has a required period of residential
training, you must treat the residential training as an additional
payment period and determine the payment for that payment period
using either Formula 3 or Formula 4. Note that the correspondence
portion of the program is still treated as a separate portion of the
program that is divided into two equal payment periods.

Step 5: CALCULATE THE PAYMENT FOR A PAYMENT PERIOD

[[Formula 5A]]
For nonterm programs, this step is the same as under
Formula 4. The school first multiplies the annual award
(determined from the half-time Disbursement Schedule, in this case)
by the lesser of :

Weeks of instructional time for a full-time
student to complete hours in the program
----------------------------------------------------
Weeks of instructional time in program's definition
of academic year

OR

Weeks of instructional time for a full-time student
to complete hours in the academic year
-----------------------------------------------------
Weeks of instructional time in program's definition
of academic year

OR

One (1)

The school then multiplies the result by the following fraction:

Hours in a payment period
----------------------------------------------
Hours in program's definition of academic year


[[Formula 5B]]
For term programs, this step is the same as under
Formula 3. The school multiplies the annual award by the following
fraction:

Weeks of instructional time in the term
Annual award X -------------------------------------
Weeks of instructional time in program's
definition of academic year

If the resulting amount is more than 50 percent of the annual award,
the school must make the payment in at least two disbursements.
A single disbursement may never be more than 50 percent of the
annual award.

TERMS WITH CLOCK HOURS

The amount of a Pell for a student enrolled in clock-hour term
programs is calculated under Formula 4, as discussed earlier in this
section. However, there are specific rules for the treatment of
payment periods in these programs.

The payment period for a term-based clock-hour program is the
academic term. However, the student must complete all clock hours
scheduled for that term before receiving any more Pell funds. If a
student has not completed all clock hours scheduled for a term in
which he or she has received a Pell payment, the payment period
extends beyond that term for as long as it takes the student to
complete the originally scheduled clock hours.

A payment period that extends into another term will change the
pattern of payment periods for the student's program of study.
Because subsequent Pell payments may not be made until the
student has completed all clock hours for which he or she has
received payment, the next payment period will consist of only those
clock hours that were scheduled in that term, minus the clock hours
completed in that term that belonged to the prior term. Thus,
although the payment period will coincide with an academic term, it
will be shorter. That is, the payment period will include fewer clock
hours than originally scheduled. Those remaining clock hours,
caused by the change in the payment period pattern, will shift to an
additional payment period at the end of the student's program of
study. The following example illustrates how to determine payment
periods for term-based, clock-hour programs.

[[The payment period examples on page 4-34 are currently
unavailable for viewing. Please reference your paper document
for additional information.]]

In addition, because the shorter payment period has fewer clock
hours, the student's payment for that payment period will be less
than for the regular payment periods.


CHECKING REMAINING ELIGIBILITY: CROSSOVER
PAYMENT PERIODS

Payment periods do not always fall neatly into one award year or
another. When a payment period falls into two award years, it is
referred to as a "crossover payment period."

[[The "Semester Example" on page 4-35 is currently unavailable
for viewing. Please reference your paper document for
additional information.]]

At a school with a traditional term calendar, the summer term is
usually a crossover payment period.

The basic calculation for a crossover payment period is the same as
that for any other payment period. However, there are additional
provisions for some summer terms. See "Summer Terms" in this
section.

[[Payment from either award year]]
The school may make a payment for a crossover payment period out
of either award year, provided the student has a valid SAR or ISIR
for the award year selected.*8* The decision of which award year to
use is usually based on the student's remaining eligibility in the
earlier award year. For instance, if a student had already been paid
for two semesters (each at least 15 weeks) as a full-time student for a
full academic year in the 1995-96 award year, the student would
have been paid a full Scheduled Award for that year. However, if
the student submits a valid SAR or ISIR for the 1996-97 award year,
he or she could be paid for the crossover period from that year's
funds. Of course, a student may still be eligible for a summer
payment from the earlier award year if the student has not attended
for a full academic year. An example would be a student who
enrolls at midyear, in the spring session, and still has eligibility
remaining for the summer term. As another example, a student
could receive a Pell payment for the summer term, even after
receiving payments for the other terms in the award year, if the
student attended PART TIME in those other terms, or if those terms
provided less than 30 weeks of instructional time.

[[Costs for crossover payment period]]
Costs for a crossover payment period are figured in the same way as
for any other payment period-that is, the costs are based on a full
academic year. For instance, if your school has fall and spring
semesters that comprise an academic year, you must not add the
costs for the summer term to the costs for the fall and spring
semesters. The award for the summer term is still based on the costs
for one academic year. However, if the academic year definition
includes the summer term, then the costs for the summer term
MUST be included in the cost for a full academic year.

If the student was previously enrolled in the award year, you may be
able to use the same COA for the summer term that you used for the
immediately preceding term the student attended. However, this is
not possible if you are required to recalculate the COA. (Section
Five of this chapter discusses the rules for recalculating awards-
you must recalculate for cost changes if the student's enrollment
status has changed, or if your school has established a policy of
recalculating costs.) If it is necessary to base the student's COA on
the summer term, you must prorate the summer costs to establish the
cost for an academic year. See "Calculating the Cost of Attendance"
in this section for information on prorating costs.

If the summer session is the first term in the award year for that
student (for example, you are paying a student for the summer 1995
term from the 1995-96 award year), you must establish the student's
full-year cost based on the costs for the SUMMER term. If the
student enrolls in another term in that award year, you may have to
recalculate the student's costs for the later term (see Section Five.)

CHECKING REMAINING ELIGIBILITY: TRANSFER
STUDENTS

[[SAR OR ISIR and transcript needed]]
The school must be careful not to exceed the Scheduled Award when
paying a student who has previously received a Pell for the award
year at another school. To pay such a student, the school must
obtain a SAR or ISIR and a financial aid transcript.

There are three ways to obtain the student's application information
and official EFC if the student did not list your school on the FAFSA:

[[ Duplicate SAR]]
1. Have the student request a duplicate of his or her original SAR
and submit it to you. (If your school uses a FAFSA processor
different from the one at the student's previous school and you
want a SAR produced by your FAFSA processor, you could ask
the student to write to your FAFSA processor to request a
duplicate SAR.)

[[PIN number]]
2. If your school participates in EDE, you can have the student
give you his or her Personal Identification Number (PIN) that
is printed on the upper right corner of all three parts of the
SAR, so that you can obtain the student's data electronically.

[[Correct SAR]]
3. Have the student correct his or her SAR to add your school's
name to the list of schools in items 90 through 101.

[[Financial aid transcript]]
The student must make arrangements to have the other eligible
school(s) that he or she attended send a financial aid transcript to
your school. If the student has not already asked the other school(s)
to send the transcript(s), you may request them on the student's
behalf. The transcript requirement is discussed in more detail in
Chapter Three of this handbook because providing the transcript is
one of an school's general administrative responsibilities.

[[Calculating the payment]]
The Pell payment for a transfer student is calculated in the same way
as for any new student. That is, you must divide the annual award
(prorated if necessary) into payments for each payment period.
However, before paying a transfer student, you must also make sure
the student does not receive more than 100 percent of his or her
Scheduled Award during the award year.

[[Figuring percentage of remaining eligibility]]
The information you need is on the financial aid transcript from the
previous school. First, find the percentage of the Pell received at
that school: Divide the amount the student received at the previous
school by the student's Scheduled Award at that school. Then
subtract this percentage from 100 percent. The result is the
maximum percentage of the Scheduled Award that the student
generally may receive at your school. (See the example on the next
page.)

[[The example on page 4-38 is currently unavailable for viewing.
Please reference your paper document for additional information.]]

The reason for using percentages is that a transfer student may have
different Scheduled Awards because the costs of attendance at the
two schools may be different. The percentages are a way of
comparing the portions of a student's eligibility that have been used
at both schools. (If the student's Scheduled Award is the same at
both schools, you can find the amount of the student's remaining
eligibility simply by subtracting the amount received at the first
school from the Scheduled Award.)

Note that a transfer student receives the same payments as any other
student until the limit (100 percent of a Scheduled Award) is
reached. An example would be a transfer student who enrolls for
two terms in the award year at your school and would ordinarily
receive a $500 payment for each term. However, the student's
remaining eligibility, based on payments at the other school, is only
$600. Rather than "rationing" this amount by splitting it into two
$300 payments for the two terms, you must pay the student $500 for
the first term, and the remainder ($100) for the second term. Thus,
the student will have received a full payment for the first term, even
if he or she does not return for the second term.

FORMULA SUMMARIES

On the following pages are summaries of the steps involved in
calculating a Pell for each of the five formulas.

[[The formula summaries on pages 4-39 through 4-45 are
currently unavailable for viewing. Please reference your paper
document for additional information.]]

CALCULATION EXAMPLES


EXAMPLE 1-Hart University
(Standard term, credit-hour program/ 30 weeks of instructional
time/Formula 1)

BACKGROUND

Owen enrolls full time in Hart University. Hart University has fall
and spring semesters, each of which provides 15 weeks of
instructional time. Thus, the two semesters provide the 30 weeks of
instructional time that are required for an academic year. The terms
do not overlap. The school has defined the academic year for Owen's
program as 24 semester hours and 30 weeks of instructional time.
The school defines full-time attendance as 12 semester hours per
term. Therefore, Hart University can use Formula 1 to calculate
Pells for students in this program.

Owen attends two semesters of 12 semester hours each in the 1995-
96 award year, and his EFC is 752. The average costs for a full-
time student attending both semesters are as follows:

Tuition and Fees $4,200
Books and Supplies $600
Room and Board $2,500
Transportation $450
Misc. Expenses $300
Loan Fees $120
-----------------------------------------------------
TOTAL $8,170

STEP 1: Determine Enrollment Status

Owen is attending full time (12 semester hours) in each term.

STEP 2: Calculate Pell COA

Because the two semesters provide a full 30 weeks of instructional
time, the full-time, full-year COA is the cost for a full-time student
to attend both semesters: $8,170.

STEP 3: Determine Annual Award

Based on a COA of $8,170 and an EFC of 752, the full-time
Payment Schedule shows that Owen is eligible for an annual award
of $1,590.

STEP 4: Determine Payment Periods

Because this is a term program, the payment period is the term (the
semester).

STEP 5: Calculate Payment for a Payment Period

The school divides the annual award by the number of terms:

$1,590/2=$795

Therefore, Owen's payment for each payment period is $795; he will
receive the full annual award of $1,590 if he actually attends both
semesters.

[[Recalculation for enrollment change]]
Suppose instead that Owen decides to attend only 4 semester hours
in the second semester. The school must then recalculate his
award. His enrollment status is less than half time. Because he is
attending less than half time, his COA can only include tuition and
fees, books and supplies, and transportation:

Tuition and Fees $4,200
Books and Supplies $600
Transportation $450
-----------------------------------------------------
TOTAL $5,250

Note that the amount for each component in the COA is still the
amount for a full-time student for a full year.

The school then looks up the new annual award on the
less-than-half-time Disbursement Schedule. Based on a COA of
$5,250 and an EFC of 752, Owen is eligible for an annual award of
$400. The payment period is still the semester. To determine how
much Owen can receive for the second semester, the school divides
the annual award by the number of terms (2). Owen can now
receive $200 for his second semester.


EXAMPLE 2-Woodhouse College
(Standard term, credit hour program/ 28 weeks of instructional
time/Formula 2)

BACKGROUND

Emma enrolls full time in Woodhouse College. Woodhouse has fall
and spring semesters, each of which provides 14 weeks of
instructional time. Thus, the two semesters provide 28 weeks of
instructional time, shorter than the statutory requirement for an
academic year. The terms do not overlap. The school has defined
the academic year for Emma's program as 24 semester hours and 30
weeks of instructional time. The school defines full-time attendance
as 12 semester hours per term. Therefore, Woodhouse College can
use Formula 2 to calculate Pells for students in Emma's program.

Emma attends two semesters of 12 semester hours each in the
1995-96 award year, and her EFC is 500. The average costs for a
full-time student attending both semesters are as follows:

Tuition and Fees $2,600
Books and Supplies $430
Room and Board $2,700
Transportation $300
Misc. Expenses $150
Loan Fees $100
---------------------------------------------------
TOTAL $6,280

STEP 1: Determine Enrollment Status

Emma is attending full time (12 semester hours) in each term.

STEP 2: Calculate Pell COA

Because the two semesters do not provide a full 30 weeks of
instructional time, the cost for a full-time student to attend both
semesters must be prorated to determine a full academic year COA.
Only the costs associated with weeks are prorated, because the
number of credit hours meet the minimum requirement for an
academic year:

CREDIT HOUR COSTS (NOT PRORATED)

Tuition and Fees $2,600
Books and Supplies $430
Loan Fees $100
---------------------------------------------------
TOTAL $3,130

WEEK COSTS

Room and Board $2,700
Transportation $300
Misc. Expenses $150
-------------------------------------------------
TOTAL $3,150

30 weeks instructional time in
academic year definition
$3,150 X -------------------------------------- = $3,375
28 weeks instructional time in
fall through spring terms

Emma's COA is the sum of the two types of costs:
$3,130 + $3,375 = $6,505

STEP 3: Determine Annual Award

Based on a COA of $6,505 and an EFC of 500, the full-time
Payment Schedule shows that Emma is eligible for an annual award
of $1,890.

STEP 4: Determine Payment Period

Because this is a term program, the payment period is the term (the
semester).

STEP 5: Calculate Payment for a Payment Period

Because the two terms provide less than 30 weeks of instructional
time, the annual award must be prorated:

28 weeks instructional time in
fall through spring terms
$1,890 -------------------------------------- = $1,764
30 weeks instructional time in
academic year definition

This prorated amount is then divided by the number of terms:

$1,764/2=$882

Therefore, Emma's payment for each payment period is $882; she
will receive $1,764 for her attendance in both semesters. Note that
this is less than her annual award; she may be able to receive the
remaining $126 if she enrolls in a summer term.

[[Summer term]]
Woodhouse College offers a summer term, which provides 12 weeks
of instructional time. Because Woodhouse defines full-time
enrollment in this term as 12 semester hours, it can still calculate
Pells using Formula 2. Suppose Emma enrolls half time (6 semester
hours) in this term. Woodhouse could use the same COA as for the
fall and spring semesters. Emma's annual award for the summer
term from the half-time Disbursement Schedule would be $945.
Woodhouse would calculate the summer payment as follows:

28 weeks instructional time in
fall through spring terms
$945 X ----------------------------- = $882
30 weeks instructional time in
academic year definition

$882/2=$441

Emma's payment for the summer term should be $441; however, she
may only receive $126 because otherwise she would receive more
than a Scheduled Award in the award year. Note that Woodhouse
could also decide to pay Emma for the summer term from the
following award year.


EXAMPLE 3-Van Dam Conservatory
(Nonstandard term, credit-hour program/ 32 weeks of instructional
time/ Formula 3)

BACKGROUND

José enrolls in a two year program at Van Dam Conservatory. Van
Dam Conservatory's academic calendar consists of four terms, each
of which provides 8 weeks of instructional time. The school has
defined the academic year for José's program as 40 quarter hours
and 32 weeks of instructional time. Because the program José is
enrolled in does not use standard terms (semesters, trimesters, or
quarters), the school must use Formula 3 to calculate Pells for
students in the program.

José attends four terms of 10 quarter hours each in the 1995-96
award year, and his EFC is 323. The school charges the student for
the tuition for the entire program when the student begins. The
average cost for a full-time student for the entire program is:

Tuition and Fees $8,900
Books and Supplies $1,800
Room and Board $8,600
Transportation $1,040
Misc. Expenses $1,700
Loan Fees $240
------------------------------------------------
TOTAL $22,280

STEP 1: Determine Enrollment Status

Because the program has nonstandard terms, Van Dam must
determine the number of credit hours required for full-time
enrollment in the term as follows:

8 weeks instructional
time in term
40 quarter X -------------------------- = 10 quarter hours
hours 32 weeks instructional time
in academic year

Because José is enrolled for ten hours in each term, his enrollment
status is full time.

STEP 2: Calculate Pell COA

Because the program is longer than an academic year, the school
must determine the cost for an academic year by prorating the full
program cost:

CREDIT HOUR COSTS

Tuition and Fees $8,900
Books and Supplies $1,800
Loan Fees $240
--------------------------------------------------
TOTAL $10,940

WEEK COSTS

Room and Board $8,600
Transportation $1,040
Misc. Expenses $1,700
------------------------------------------------
TOTAL $11,340

40 quarter hours
Credit academic year
hour $10,940 X ---------------- = $5,470
costs 80 quarter hours
for program

32 weeks instructional time
in academic year
Week $11,340 X ------------------------- = $5,670
costs 64 weeks instructional
time in program

José's COA is the sum of the prorated costs:
$5,470 + $5,670 = $11,140.

STEP 3: Determine Annual Award

Based on a COA of $11,140 and an EFC of 323, the full-time
Payment Schedule shows that José is eligible for an annual award of
$1,990.

STEP 4: Determine Payment Periods

Because this is a term program, the payment period is the term.

STEP 5:

To determine José's payment for a payment period, the school uses
the following calculation:

8 weeks instructional
time in the term
$1,990 X -------------------------- = $497.50
32 weeks instructional time
in the acedemic year

José's payment for the first and third payment periods will be $498
(rounded up from $497.50); his payment for the second and final
payment periods must be reduced to $497 so that he is not overpaid.


EXAMPLE 4-Hart University
(Nonstandard term, credit hour program/ 34 weeks of instructional
time/ Formula 3)

BACKGROUND

In addition to programs using standard semesters, Hart University
offers an separate degree program in education with a short 4-week
term between two 15-week terms. Helen enrolls in this program
part-time. The terms do not overlap. The school has defined the
academic year for Helen's program as 24 semester hours and 34
weeks of instructional time. Hart could combine the short term with
one of the standard terms and calculate Pells using Formula 1
(assuming that it defined full-time enrollment as 12 semester hours
per term); however, it chooses not to combine the terms and instead
calculates Pells using Formula 3.

Helen attends three terms in the 1995-96 award year; she enrolls for
six hours in the first and third terms and three hours in the second
term. Her EFC is 1214. The average costs for a full-time student
attending a full year are as follows:

Tuition and Fees $4,725
Books and Supplies $650
Room and Board $2,500
Transportation $450
Misc. Expenses $300
Loan Fees $120
--------------------------------------------------
TOTAL $8,745

STEP 1: Determine Enrollment Status

Because the program has nonstandard terms, Hart must determine
the number of credit hours required for full-time enrollment in each
term as follows:

15 weeks instructional
24 time in term
semester X ------------------------ = 10.58
hours 34 weeks instructional
time in academic year

4 weeks instructional
24 time in term
semester X ----------------------- = 2.82
hours 34 weeks instructional
time in academic year

A student must enroll in 11 semester hours (rounded up from 10.58)
in the first and third terms and 3 semester hours (rounded up from
2.82) in the second term to be full-time. Note that Helen is enrolled
full-time in the second term. To determine Helen's enrollment
status for the other two terms, the school must compare the number
of hours she is enrolled with the number required for full-time
enrollment:

6 semester hours
-------------------- = .54
11 semester hours

Because .54 is less than three-quarters (.75) and greater than one-
half (.5), Helen is enrolled half-time in the first and third terms.

STEP 2: Calculate Pell COA

The fall through spring terms provide the same number of weeks of
instruction as in an academic year, and the school has determined
costs for a full-time student for a full academic year. Therefore, the
costs provided on the previous page do not need to be prorated.
Helen's COA is $8,745.

STEP 3: Determine Annual Award

Based on a COA of $8,745 and an EFC of 1214, the half-time
Disbursement Schedule shows that Helen is eligible for an annual
award of $545. For the second term, Helen has an annual award of
$1,090 (from the full-time Payment Schedule). Note that her annual
award for the second term is the same as her Scheduled Award.

STEP 4: Determine Payment Periods

Because this is a term program, the payment period is the term.

STEP 5: Calculate Payment for a Payment Period

To determine Helen's payment for the first payment period, the
school uses the following calculation:

15 weeks instructional
time in the term
$545 X -------------------------- = $240.44
34 weeks instructional
time in the academic year

Helen's payment for the first payment period will be $240 (rounded
down from $240.44). To determine her payment for the second
payment period, the school uses this calculation:

4 weeks instructional
time in the term
$1,090 X ---------------------- = $128.23
34 weeks instructional
time in the academic year

Helen's payment for the second payment period will be $128
(rounded down from $128.23). Helen's payment for the third term
will be $241 (rounded up because the first two were rounded down).
She will receive $609 for the entire year. Note that this is less than
her Scheduled Award, but more than the annual award based on
half-time enrollment.


EXAMPLE 5-Waltman Technical Institute
(Non-term, credit-hour program/ 20 weeks of instructional time/
Formula 4)

BACKGROUND

Sean enrolls in a 24-quarter hour program at Waltman Technical
Institute. The program is less than an academic year; it can be
completed in 20 weeks of instructional time. Waltman does not use
terms; therefore, it must use Formula 4 to calculate students' Pells.
The school has defined the academic year for Sean's program as 36
quarter hours and 30 weeks of instructional time; it defines full-time
enrollment as 36 quarter hours in an academic year.

Sean enrolls for 24 quarter hours in 20 weeks of instructional time;
his EFC is 137. The average costs for the program are as follows:

Tuition and Fees $1,700
Books and Supplies $100
Room and Board $1,000
Transportation $100
Misc. Expenses $200
----------------------------------------------------
TOTAL $3,100

STEP 1: Determine Enrollment Status

Waltman must determine whether Sean is enrolled at least half-time
or less-than-half-time. A full-time student would complete 24
quarter hours in 20 weeks of instructional time (prorated from 36
quarter hours in 30 weeks). Therefore, Sean is enrolled at least half-
time.

STEP 2: Calculate Pell COA

Because the program is less than an academic year, the costs for the
program must be prorated to determine the cost for a full academic
year:

CREDIT HOUR COSTS

Tuition and Fees $1,700
Books and Supplies $100
------------------------------------------------
TOTAL $1,800

WEEK COSTS

Room and Board $1,000
Transportation $100
Misc. Expenses $200
-------------------------------------------------
TOTAL $1,300

36 quarter hours
Credit in academic year
hour $1,800 X ----------------- = $2,700
costs 24 quarter hours
for program

30 weeks instructional
Week time in academic year
costs $1,300 X --------------------- = $1,950
20 weeks instructional
time in program

Sean's COA is the sum of these prorated costs:
$2,700 + $1,950 = $4,650

STEP 3: Determine Annual Award

Based on a COA of $4,650 and an EFC of 137, the full-time
Payment Schedule shows that Sean is eligible for an annual award of
$2,190.

STEP 4: Determine Payment Periods

Sean's program is a nonterm program; therefore, Waltman must
establish the payment periods. Because the program is shorter than
an academic year, it must have at least two equal payment periods.
The school chooses to have two payment periods. Each payment
period is the period of time in which the student completes 12
quarter hours (half the hours in the program).

STEP 5: Calculate Payment for a Payment Period

To calculate Sean's payment, the school uses the following
calculations:

20 weeks instructional
time for program
$2,190 X ---------------------- = $1,460
30 weeks instructional
time in the academic year

12 quarter hours in
payment period
$1,460 X -------------------- = $486.66
36 quarter hours in
the academic year

Sean's payment for the first payment period will be $487 (rounded
up from $486.66). Sean may receive this payment when he begins
the program. Sean's payment for the second payment period will be
$486 (rounded down, because the first payment was rounded up).
Sean may receive this payment after he completes the 12 quarter
hours in the first payment period.

EXAMPLE 6-Ivers Community College
(Term, clock-hour program; 45 weeks of instructional time;
Formula 4)

BACKGROUND

Eileen enrolls in a 1350 clock hour program at Ivers Community
College. The program is offered in three terms, each of which is 15
weeks of instructional time. Because this is a clock-hour program,
Ivers must use Formula 4 to calculate Pells for students in the
program. The school has defined the academic year for Eileen's
program as 900 clock hours and 30 weeks of instructional time; it
defines full-time enrollment as 30 clock hours per week.

Eileen enrolls for 450 clock hours in each term in the 1995-96
award year; her EFC is 251. The average costs for the entire
program are as follows:

Tuition and Fees $7 00
Books and Supplies $ 50
Room and Board $3,750
Transportation $250
Misc. Expenses $170
-------------------------------------------------
TOTAL $4,920

STEP 1: Determine Enrollment Status

Ivers must determine whether Eileen is enrolled at least half-time or
less-than-half-time. Eileen is enrolled for 30 hours in each week of
the term; therefore, she is enrolled at least half-time under the
school's definition.

STEP 2: Calculate Pell COA

Because the program is longer than an academic year in length, the
costs for the program must be prorated to determine the costs for an
academic year.

CREDIT HOUR COSTS:

Tuition and Fees $700
Books and Supplies $50
------------------------------------------------
TOTAL: $750

WEEK COSTS:

Room and Board $3,750
Transportation $250
Misc. Expenses $170
-----------------------------------------------
TOTAL $4,170

900 clock hours in
Credit academic year
hour $750 X -------------------- = $500
costs 1350 clock hours
for program

30 weeks instructional
Week time in academic year
costs $4,170 X ----------------------- = $2,780
45 weeks instructional
time in program

Eileen's COA is the sum of these prorated costs:
$500 + $2,780 = $3,280

STEP 3: Determine Annual Award

Based on a COA of $3,280 and an EFC of 251, the full-time
Payment Schedule shows that Eileen is eligible for an annual award
of $2,090.

STEP 4: Determine Payment Periods

Because the program uses terms, the payment period is the term.
However, note that Eileen must complete all the clock hours
scheduled for the first term (450) before receiving her second
payment.

STEP 5: Calculate Payment for a Payment Period

To calculate Eileen's payment, the school uses the following
calculations:

30 weeks instructional
time for program
$2,090 X ----------------------- = $2,090
30 weeks instructional
time in the academic year

450 clock hours in
payment period
$2,090 X ------------------ = $1,045
900 clock hours in
the academic year

Eileen's payment for the first payment period will be $1,045. She
may receive this payment when she begins the program. Her
payment for the second payment period will also be $1,045; she may
receive this payment after she completes the 450 clock hours in the
first payment period.

[[Clock hours not completed within term]]
Suppose that Eileen completes only 400 clock hours in the 1st term.
She will not receive her second payment until she completes the
remaining 50 hours from the first term in the second term. In
addition, the second payment period will be only 400 clock hours.
Ivers calculates the payment for this second payment period as
follows:

30 weeks instructional
time for program
$2,090 X ----------------------- = $2,090
30 weeks instructional
time in the academic year

400 clock hours in
payment period
$2,090 X ------------------- = $928.88
900 clock hours in
the academic year

Her payment for this period will be $929. In the next award year,
she will have a payment period of 450 hours, as originally
scheduled, followed by a payment period of 50 hours to complete the
hours missing from the second term.


EXAMPLE 7-Waltman Technical Institute
(Nonterm, clock-hour program; 28 weeks of instructional time;
Formula 4)

BACKGROUND

Miranda enrolls in a 650 clock hour program at Waltman Technical
Institute. The program is less than an academic year; it provides 28
weeks of instructional time. Because Waltman does not use terms, it
must use Formula 4 to calculate Pells for students in Miranda's
program. The school has defined the academic year for the program
as 900 clock hours and 30 weeks of instructional time; it defines
full-time enrollment as 24 clock hours per week.

Miranda enrolls for 10 clock hours per week; her EFC is 0. The
average costs for the entire program are as follows:

Tuition and Fees $1,800
Books and Supplies $100
Room and Board $2,500
Transportation $100
Misc. Expenses $200
--------------------------------------------------
TOTAL $4,700

STEP 1: Determine Enrollment Status

Waltman must determine whether Miranda is enrolled at least
half-time or less-than-half-time. Miranda is enrolled for 10 clock
hours per week; therefore, she is enrolled less than half-time
(half-time would be 12 clock hours per week).

STEP 2: Calculate Pell COA

Because the program is shorter than an academic year in length, the
costs for the program must be prorated to determine the costs for an
academic year. Also, because Miranda is attending less than half
time, the COA can't include all components:

CREDIT HOUR COSTS:

Tuition and Fees $1,800
Books and Supplies $100
------------------------------------------------
TOTAL $1,900

WEEKS COSTS

Transportation $100

900 clock hours
Credit in academic year
hour $1,900 X --------------- = $2,631
costs 650 clock hours
for program

30 weeks instructional
Week time in academic year
costs $100 X ------------------- = $107
28 weeks instructional
time in program

Miranda's COA is the sum of these prorated costs:
$2,631 + $107 = $2,738

STEP 3: Determine Annual Award

Based on a COA of $2,738 and an EFC of 0, the full-time Payment
Schedule shows that Miranda is eligible for an annual award of $2,340.

STEP 4: Determine Payment Periods

Miranda's program is a nonterm program; therefore, Waltman must
establish the payment periods. Because the program is shorter than
an academic year, it must have at least two equal payment periods.
The school chooses to have two payment periods. Each payment
period is the period of time in which the student completes 325
clock hours (half the hours in the program).

STEP 5: Calculate Payment for a Payment Period

To calculate Miranda's payment, the school uses the following
calculations:

27 weeks instructional
time for program
$2,340 X -------------------- = $2,106
30 weeks instructional
time in the academic year

325 clock hours in
payment period
$2,106 X ---------------- = $760.50
900 clock hours in
the academic year

Miranda's payment for the first payment period will be $761
(rounded up from $760.50). She may receive this payment when
she begins the program. Her payment for the second payment
period will also be $760 (rounded down because the first payment
was rounded up); she may receive this payment after she completes
the 325 clock hours in the first payment period. Because she is
enrolled for only 10 clock hours a week, she will not receive her
second payment until she has completed more than 32 weeks.


EXAMPLE 8-Ivers Community College
(Term, credit-hour program; 36 weeks of instructional time;
summer term alternate calculation)

BACKGROUND

Kevin enrolls in a two year associate degree program at Ivers
Community College. The academic calendar for this program uses
quarters. There are three quarters in the fall through spring terms;
each provides 9 weeks of instructional time. The terms do not
overlap. Ivers defines full-time enrollment as 12 quarter hours per
term. Ivers could use Formula 2 to calculate Pells for students in the
program. However, the program also has a summer quarter which
provides 9 weeks of instructional time. Ivers decides to use the
alternate calculation for this program. Ivers must use this
calculation for all students in the program, even if they do not attend
the summer quarter. The definition of academic year must include
the weeks of the summer term; in addition, Ivers may, if it chooses,
include credit hours for the summer term in the academic year
definition. The school defines academic year for Kevin's program as
48 quarter hours and 36 weeks of instructional time.

Kevin enrolls for 6 quarter hours in each of the four quarters in the
1995-96 award year; his EFC is 300. The average costs for a full-
time student for a full academic year (including the summer quarter)
are as follows:

Tuition and Fees $1,920
Books and Supplies $200
Room and Board $2,500
Transportation $240
Misc. Expenses $240
Loan Fees $100
-------------------------------------------------
TOTAL $5,200

STEP 1: Determine Enrollment Status

Kevin is attending half time (6 quarter hours) in each term.

STEP 2: Calculate Pell COA

Because the four terms provide the same number of weeks of
instructional time as an academic year, the full-time, full year cost
above is the Pell COA. Kevin's COA is $5,200. Note that if the
school had determined average costs based only on the fall through
spring terms it would have to add summer costs to those costs to
determine the COA.

STEP 3: Determine Annual Award

Based on a COA of $5,200 and an EFC of 300, the half-time
Disbursement Schedule shows that Kevin is eligible for an annual
award of $1,045.

STEP 4: Determine Payment Periods

Because the program uses terms, the payment period is the term.

STEP 5: Calculate Payment for a Payment Period

The school uses the alternate calculation to determine Kevin's
payment for a payment period. It divides the annual award by the
number of terms in the award year:

$1,045 / 4 = $262.25

Kevin will receive $262 (rounded down from $262.25) in the fall
and spring quarters; he will receive $263 (rounded up because other
payments are rounded down) in the winter and summer quarters.

[[Formula 2]]
If the school did not use the alternate calculation, and calculated
payments using Formula 2, it would have to adjust the COA,
although this would not affect Kevin's annual award. Using the
same annual award, the school would calculate Kevin's payment
using the following calculation:

27 weeks instructional time
in fall through spring terms
$1,045 X ------------------------- = $940.50
30 weeks instructional time
in academic year definition

Ivers would then divide this prorated annual award by 3 (because the
program uses quarters) to determine Kevin's payment for the payment
period:

$940.50 / 3 = $313.50

Kevin would receive $314 for the fall and winter quarters (rounded
up) and $313 for the spring quarter (rounded down because the first
two were rounded up). If he attended the summer quarter, he would
receive an additional $313 payment.

EXAMPLE 9-Hart University
(Term, credit-hour program; 30 weeks of instructional time;
Summer mini-sessions)

BACKGROUND

Bruce enrolls part time at Hart University. In addition to fall and
spring semesters, Hart University offers three summer mini-sessions.
Each mini-session provides 5 weeks of instructional time. Hart can
either combine the mini-sessions into a single payment period, or
treat each session as a separate nonstandard term. Hart has
combined the sessions into a single payment period providing 15
weeks of instructional time. Full-time enrollment in this period is
defined as 12 semester hours. Hart can use Formula 1 to calculate
payments for this summer session.

Bruce enrolls for 3 semester hours in each of the three mini-
sessions; her EFC is 772. The average costs for a full-time student
for the fall through spring terms are as follows:

Tuition and Fees $4,200
Books and Supplies $600
Room and Board $2,500
Transportation $450
Misc. Expenses $300
Loan Fees $120
-------------------------------------------------
TOTAL $8,170

STEP 1: Determine Enrollment Status

Bruce is enrolled for 9 semester hours in the combined term (3 in
each mini-session). Therefore, he is enrolled three-quarter time.

STEP 2: Calculate Pell COA

Because the fall through spring terms provide the same number of
weeks of instructional time as an academic year, the cost given
above for a full-time student is used for the Pell COA: $8,170.

STEP 3: Determine Annual Award

Based on a COA of $8,170 and an EFC of 772, the three-quarter-
time Disbursement Schedule shows that Bruce is eligible for an
annual award of $1,193.

STEP 4: Determine Payment Periods

Because the program uses terms, the payment period is the term. In
this case, the payment period is the term created by combining the
mini-sessions.

STEP 5: Calculate Payment for a Payment Period

To calculate Bruce's payment, the school divides the annual award by
the number of terms in the academic year:

$1,193 / 2 = $596.50

Bruce may receive $597 for the combined summer session. However,
suppose Bruce had also enrolled three-quarter time in the fall and
spring semesters. He would have received a total of $1,193 for these
two terms. If this amount is subtracted from his Scheduled Award
($1,590), only $397 remains. Therefore, if Bruce had enrolled in
both semesters, he would only receive $397 for the combined
mini-session.

[[Formula 3]]
If Hart University did not combine the three mini-sessions, it would
have to calculate Bruce's payments using Formula 3. Hart would
have to determine Bruce's enrollment status by multiplying full-time
enrollment for the academic year (24 semester hours) by the number
of weeks of instructional time in the term (5) over the number of
weeks in the year. For the 5 week terms, a full-time student must
enroll in 4 semester hours to be full-time; therefore, Bruce is still
enrolled three-quarter-time. The COA would not have to be
adjusted, and his annual award would remain the same. Hart would
determine his payment using the following calculation:

5 weeks instructional
time in the term
$1,193 X ---------------------- = $198.83
30 weeks instructional
time in the academic year

Bruce would receive $199 for the first two mini-sessions, and $198 for
the third mini-session, for a total of $596 for the summer.

TWO MATHEMATICAL NOTES

1. When making disbursements, you must round to the nearest
dollar. Round up if the decimal is .50 or higher; round down if it is
less than .50. For instance, if a calculation resulted in a payment of
$516.66, round up to $517. If the calculation result was $516.33,
round down to $516.

For a student who is expected to be enrolled for more than one
payment period in the award year, you must alternate rounding up
and rounding down to ensure that the student receives the correct
amount for the year. For example, if a student had a Scheduled
Award of $1,025 to be paid in two payment periods, the first
payment would be $513 (rounded up from $512.50), and the second
payment would be $512 (rounded down to ensure that the student is
not overpaid for the year).

The same principle applies when there are three or more payment
periods in the award year. For instance, if the student has a
Scheduled Award of $1,100 and enrolls at a school using quarter
terms, the payment for each term would come to $366.66. The first
two payments would be rounded up to $367, and the last payment
would be rounded down to $366 to reach the total of $1,100.

2. When using fractions, you must be careful to multiply first, and
then divide, or you may create an overpayment. For example, if you
are calculating the payment in a program that has three payment
periods of 300 hours each, you should use the method in this example:

300 (hours in payment period)
$2,130 X ---------------------------
(scheduled 900 (hours in academic year)
award)

Step 1: $2,130 X 300 = 639,000

Step 2: 639,000 / 900 = $710

(In THIS case, you can simplify this calculation by reducing the
fraction 300/900 to 1/3 and get the same result. But, if you divide
the fraction to get a decimal [300/900=.333333...] and then round
the decimal either down [.33] or up [.34], your calculation will
produce either an underpayment [$703] or an over payment [$724].)


*3* See "Basic Concepts" earlier in this section for the definition of
standard and nonstandard terms.

*4* Note that prorating the COA will not affect the amount of Pell
the student receives unless the proration reduces the cost below
$2,340 or raises it above $2,340. However, you must enter accurate
amounts when reporting disbursements. See Section Seven.

*5* Not available for all student/programs. See Chapter Two,
page 2-45ff.

*6*The tuition charge may include any additional amount changed
to "out-of-state" or "out-of-district" students. (Schools that use
average charges are not required to develop a separate average
charge based on residency, though this is certainly permissible and
often desireable.)

Note that you cannot simply add the full-time charge of an in-state
student to the full-time charge of an out-of-state student and divide
the sum by two to find an average tuition and fees component for
these students. The result would be tuition and fees too high for
some students and too low for others. Instead, you must use a
weighted average tuition and fees for all students.

For example, a school that had 100 students, 90 in-state and 10
out-of-state, should use the following calculations:

90 x in-state charge = X
10 x out-of-state charge = Y
Total = Z
Z/100 = weighted average tuition and fees

*7* The Payment and Disbursement Schedules are mailed to all
participating schools in the winter before the award year begins.
Many schools and services have programmed the Schedules, using
the Department's specifications, for use on microcomputers or
mainframes.

*8* There is one exception: If more than six months of the payment
period occurs in a given award year, the Pell payment must be made
from that award year.