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AwardYear: 1998-1999 EnterChapterNo: 4 EnterChapterTitle: Federal Pell Grant Program SectionNumber: SectionTitle: Introduction PageNumbers: 1-2 This chapter of The Federal Student Financial Aid Handbook describes how a school calculates and pays Federal Pell Grant (Pell) awards to eligible students and how it reports those payments to the U.S. Department of Education (the Department). The discussion covers what the school must do to process an eligible student's Pell award after the school has received documentation of the student's eligibility. This chapter covers the basic steps in the Pell award process at the school: confirming student eligibility, calculating the award, making a disbursement, recalculating the award, collecting overpayments, and reporting expenditures to the Department. UPDATES --------- - The Department expects that the maximum award will increase to $3,000 for 1998-99. Because final award levels had not been authorized at the time this Handbook went to print, we did not include Payment and Disbursement Schedules. Additionally, the payment and calculation examples in this chapter are still based on the 1997-98 award maximum--$2,700. The maximum award and maximum Expected Family Contribution (EFC) cutoff for Pell eligibility have been left at $2,700 and 2,500, respectively, pending passage of legislation authorizing FY 98 funding levels. - The Department published a notice dated September 19. 1997 announcing deadline dates by which schools will be required to use designated electronic processes in order to meet administrative capability requirements for participation in the SFA programs. The designated electronic processes covered in this notice that pertain to the Pell Grant Program are a school's participation in the Title IV Wide Area Network (TIV WAN) and a school's receipt of Institutional Student Information Reports (ISIRs). At the time this Handbook went to print, the Department was developing a Dear Colleague letter that will provide additional information. - During the 1998-99 award year, schools can report Pell payments electronically through the Electronic Data Exchange (EDE, on magnetic tape or cartridge through the Recipient Data Exchange (RDE), or on diskette through the Floppy Disk Data Exchange (FDDE). Schools should be aware that 1998-99 is the final year that they can use the FDDE to report Pell payments. Beginning with the 1999-2000 award year, which begins on July 1, 1999, the FDDE will be eliminated. - The ED Payment Management System (ED/PMS) is scheduled to be completely replaced by the Education Central Automated Processing System (EDCAPS) in the first quarter of the 1998 calendar year. EDCAPS will contain the new Grants Administration and Payments System (GAPS). Section 7 of this chapter (Reporting Disbursements) covers the new EDCAPS/GAPS. - The Federal Pell Grant Recipient and Financial Management System (PGRFMS) for reporting Pell payments is being replaced by the new Recipient and Financial Management System (RFMS) for the 1998-99 award year. - The Department is planning to allow schools to report Pell overpayments electronically through NSLDS. See page 4-72 for further information. |
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