General Provision Regulations adopted from The Higher Education Reconciliation Act of 2005

1
General Provision Regulations adopted from The
Higher Education Reconciliation Act of 2005

• Prepared by the NCHELP Program Regulations
  Committee
• This presentation provides a summary of the
  changes affecting the General Provisions as
  contained in the Regulations adopted from the
  Higher Education Reconciliation Act of 2005 and
  select sections of the College Cost Reduction
  Act. Readers should refer to the detail of the
  regulations and any other guidance from the U.S.
  Department of Education in determining all
  relevant issues.
• This presentation was last updated on1-10-08.

2
General Provision Changes

• 34 CFR 668, 34 CFR 674, 34 CFR 676, 34 CFR 682,
  34 CFR 685, and 34 CFR 691

3
Effective Date

• Institutions, lenders, guaranty agencies and loan
  servicers may choose to implement all provisions
  on or after November 1, 2007.
• All provisions MUST be implemented no later than
  July 1, 2008.

4
General Definitions
5
Professional Degree

• A degree received after completing the academic
  requirements to begin practice in a profession
  and a skill level beyond that required for a
  bachelors degree. A professional license is also
  normally required.
• 668.2(b)

6
Full-time Student

• An enrolled undergraduate or graduate student who
  carries a full-time workload as determined by the
  school for all students enrolled in that program.
  The workload may include any combination of
  courses, work, research or special studies.
• 668.2(b)

7
Full-time Student
8
Graduate or Professional Student

• A student who
• does not receive Title IV aid as an undergraduate
  student for the same period of enrollment
• is enrolled in a program or course beyond the
  baccalaureate level or in a program leading to a
  professional degree and
• has completed at least the equivalent of three
  years of full-time study, either prior to
  entrance into the program or as part of the
  program.
• 682.2(b)

9
Half-time Student

• An enrolled student who
• carries half of the academic workload of a
  full-time student as defined by regulation, or
• is enrolled only in a correspondence program with
  an academic workload of at least 12 hours per
  week, or earns at least 6 credit hours per
  standard term. A student enrolled only in a
  correspondence program may not be considered
  enrolled more than half time.
• 682.2(b)

10
Three-quarter Time Student

• An enrolled student who carries three quarters of
  the academic workload of a full-time student as
  defined by regulation.
• 682.2(b)

11
Undergraduate Student

• A student who
• is enrolled in an undergraduate program not
  greater than 4 years in length or, if longer than
  4 years, leads to a baccalaureate degree
• if enrolled in a dual degree program (enrolled in
  both undergraduate and graduate degree programs
  simultaneously), is considered an undergraduate
  at least the first 3 years of such program.

12
Undergraduate Student

• For the SEOG, Pell Grant and ACG and SMART Grant
  programs, a student may not have earned a
  baccalaureate or professional degree
• For the Pell Grant program a student who has
  completed a baccalaureate program and who is
  enrolled in a teacher certification program
  required by the state
• 682.2(b)

13
Payment Periods
14
Payment Period for an Eligible Program

• The academic term is considered the payment
  period for
• a credit hour program using standard terms and/or
  nonstandard terms which are substantially equal
  in length
• specific Pell Grant, ACG, National SMART Grant,
  FSEOG, and Perkins Loan provided in a credit hour
  program using nonstandard terms which are not
  substantially equal in length

15
Payment Period for an Eligible Program

• Payment periods differ for
• FFEL and Direct Loan program funds provided in a
  credit hour program using nonstandard terms that
  are not substantially equal in length
• a credit hour program that does not have academic
  terms
• a clock hour program
• 668.4

16
Second Disbursement

• The timing of the second payment period has
• changed from the later of the calendar midpoint
  to
• half of the weeks of instructional time .
• For certain programs that do not include typical
  terms, the second payment may be disbursed
• half of the academic coursework in the program,
  academic year or remainder of the program, or
• half of the number of weeks of instructional time
  in the program academic year, or remainder of the
  program
• 668.4

17
Excused Absences

• The excused absence provision is moved from
  section 668.164(b)(3) but is not changed.
• 668.4(e)

18
180-day Rule

• Section 668.4(f) is amended and added to
  668.4(g)(3). The provision modifies the
  180-day rule for students transferring programs
  within the same non-term credit hour or a
  clock-hour school.
• Under certain conditions, students remain in the
  same payment period
• Student must be continuously enrolled
• The credits from the payment period the student
  is transferring out are accepted toward the new
  program

19
180-day Rule

• The payment periods are substantially equal in
  the length of weeks of instructional time and
  hours
• There are little or no change in the
  institutional charges associated with the payment
  period for the student
• 668.4(f)

20
Definitions

• Substantially equal in length
• no term in a program is more than two weeks
  longer than any other term in the program.
• 668.4(h)(1)
• 668.22(l)

21
Definitions

• A student successfully completes credit or
  clock hours if the institution considers the
  student to have passed the coursework associated
  with those hours in the payment period.
• 668.4(h)(2)

22
Treatment of Loan Funds

• Student Does Not Begin Attendance

23
Returning Funds

• If the student does not begin attendance in a
  period of enrollment, the school must return to
  the FFELP lender or ED (for Direct Loans) all
  loan funds made directly by or on behalf of the
  student.
• The school must continue to return all FFELP and
  Direct Loan funds that were credited to the
  students account for that period of enrollment
  (or payment period).

24
Returning Funds

• Additionally, if the school knew before it
  delivered the funds that the student would not
  begin attendance the school is responsible for
  returning all loan proceeds even funds
  delivered directly to the student or parent
  borrower.
• In this case, the school will also be required to
  notify the lender that the student did not begin
  attendance, at which point the lender or ED will
  send a final demand letter to the student.

25
Returning Funds

• The school is not responsible for returning FFELP
  and DL funds disbursed directly to the student by
  the lender for study abroad programs or foreign
  school programs, but a final demand letter must
  still be issued by the FFELP lender or ED.
• For all other Title IV aid, the school must
  return all funds that were credited to the
  students school account plus those that were
  disbursed directly to the student for that
  period.
• Trigger event Lender endorsed within 45 days
• 668.21(a)

26
Timely Funds Return

• The school must return Title IV funds
• (including Pell Grant, Perkins Loan, FSEOG,
• ACG and SMART Grant funds, as well as FFEL
• and Direct Loan funds) within 30 days after it
• learns the student will not begin or has not
• begun attendance in the period of enrollment.

27
Timely Funds Return

• The return of funds can occur by one of the
• following means
• initiating an EFT,
• initiating an electronic transaction notifying
  the lender to adjust the borrowers loan account
  by the amount returned,
• depositing the funds into the schools federal
  bank account, or
• issuing a check

28
Timely Funds Return

• The school is not in compliance with this timely
  return requirement if it did not issue the check
  within the 30-day period or if the FFEL lender or
  Secretary endorsed the check more than 45 days
  after the date the school learned the student did
  not begin attendance in the period of enrollment.
  
• 668.21(b) and (d)

29
Determining if a Student Did Not Begin Attendance

• A student does not begin attendance in a period
  of enrollment if the school cannot document that
  the student attended any class during that
  period.
• 668.21(c)

30
Post-withdrawal Disbursement
31
Crediting the Students Account and Direct
Disbursement

• The school is required to make a post-withdrawal
  disbursement from available grant funds prior to
  available loan funds.
• If the student has unpaid charges on his or her
  school account, the school can credit the
  students account with grant funds up to the
  unpaid amount. If the school obtains
  confirmation from the student, or parent for
  parent PLUS funds, the school can credit the
  students account with loan funds to cover any
  remaining unpaid amount.

32
Crediting the Students Account and Direct
Disbursement

• The school must disburse directly to a student
  any amount of a post-withdrawal disbursement of
  grant funds that is not credited to the students
  account. The disbursement must occur as soon as
  possible after the date the student withdrew, but
  no later than 45 days.
• The school must offer to disburse directly to the
  student, or parent in the case of a parent PLUS
  loan, any amount of a post-withdrawal
  disbursement that is not credited to the
  students account. Borrower confirmation is
  required.
• 668.22 (a)(5)(ii)(B)(1) and (2)

33
Required Notification

• Within 30 days of the date of the student
  withdrawal and
• before disbursement of any post-withdrawal loan
  funds,
• The school must provide a written notification to
  the
• student , or parent in the case of a parent PLUS
  loan,
• which includes the following components
• Request for confirmation that the borrower wishes
  to have a post-withdrawal disbursement of loan
  funds credited to the students account and/or
  delivered directly.
• Identification of the type and amount of the loan
  funds.
• Explanation that the student or parent, as
  applicable, may accept or decline some or all of
  the funds.

34
Required Notification

• Explanation that if the student or parent, as
  applicable, does not confirm that a
  post-withdrawal disbursement of loan funds may be
  credited to the students account, the student or
  parent will not receive any of the loan funds as
  a direct disbursement unless the school approves.
• Explanation of the obligation of the student or
  parent, as applicable, to repay any loan funds
  which are disbursed.
• Advises the student or parent, as applicable,
  that they must respond within 14 days of the date
  the school sent the notification in order to
  receive any disbursement. Disbursement after the
  14 day period may occur with school approval.

35
Required Notification

• Upon receiving timely confirmation from the
  student or parent, as applicable, regarding total
  or partial disbursement of loan funds, the school
  must disburse the funds as soon as possible and
  no later than 180 days after the student
  withdrawal date.
• The funds must be disbursed in the manner
  specified by the student or parent, as
  applicable.
• If the school receives a late response, the
  school may choose whether or not to disburse the
  loan funds. The school must inform the student
  or parent, as applicable, of the outcome of the
  post-withdrawal disbursement request.

36
Required Notification

• If the student or parent, as applicable, does not
  respond to the schools notice, no portion of the
  loan funds may be disbursed.
• The school must document in the students file
  the result of any notification and the final
  determination made concerning the disbursement
• 668.22(a)(5)(iii)

37
Return of Funds

• If a school with a credit-hour program with
  nonstandard terms which are not substantially
  equal in length uses payment periods to determine
  treatment of funds when the student withdrawals,
  it must
• For overlapping payment periods, include in the
  return of calculation any funds which can be
  attributed to the payment period that ends later
  or,
• For one payment period, include in the return of
  calculation any funds disbursed in that payment
  period.
• 668.22(a)(5)(iii)

38
Electronic DisbursementUse of Store-Value
CardsIssuing Checks
39
Disbursement by Payment Period

• A school may choose to make more than one
  disbursement in each payment period.
• 668.164(b)(1)(ii)

40
Date a School Issues a Check

• For checks payable to and requiring the
  endorsement of the student or parent, the
  issuance date is
• The date the school mails the check to the
  student or parent or,
• The date the school notifies the student that the
  check is available for immediate pickup at a
  specified location.
• 668.164(c)(1)(ii)

41
Notifying a Student That a Check is Ready to be
Picked Up

• After the date of notification, a student has up
  to 21 days to pick up the check, after which the
  school would have to
• Immediately mail the check to the student or
  parent,
• Initiate an EFT to the bank account designated by
  the student or parent, or
• Return the funds to the appropriate Title IV, HEA
  program account.
• 668.164(c)(1)(ii)(B)

42
Definition of Bank Account

• For the purposes of this section
• an account insured by the FDIC or National
  Credit Union Share Insurance Fund, such as a
  checking or savings account, or similar account
  that underlies a stored-value card or other
  transaction device.
• 668.164(c)(2)

43
EFT Disbursement to a Bank Account

• A school may have a policy to require its
  students to provide bank account information or
  open an account at a bank of the students
  choosing. However, if the student declines, the
  school may not refuse to disburse Title IV funds
  in a timely manner by some other means.

44
EFT Disbursement to a Bank Account

• If a school opens a bank account on behalf of a
  student or parent, establishes a process the
  student or parent follows to open a bank account,
  or similarly assists the student or parent in
  opening the account, the school must
• Obtain written consent from the student or parent
  to open the bank account.

45
EFT Disbursement to a Bank Account

• Inform the student or parent of the terms and
  conditions of accepting and using the account
  before the account is opened.
• Ensure that the student or parent does not incur
  any costs in opening the account or initially
  receiving any type of ATM card, stored-value
  card, or other similar device that is used to
  access funds in the account.

46
EFT Disbursement to a Bank Account

• School must ensure that the student has
  convenient access to a branch office of the bank
  or ATMs of the bank in which the account was
  opened (or ATMs of another bank) so that the
  student does not incur any cost in making cash
  withdrawals.
• The school is not required to ensure that its
  distance education students have convenient
  access to free cash withdrawals.

47
EFT Disbursement to a Bank Account

• Ensure that the debit card, stored-value card,
  ATM card, or other device can be widely used (the
  institution may not limit the use of the card or
  device to particular vendors).

48
EFT Disbursement to a Bank Account

• In addition, the school must not
• Make any claims against the funds in the account
  unless it obtains the students or parents
  permission or the school is correcting an error
  in transferring funds in accordance with banking
  protocols.
• Market or portray the account, card, or device as
  a credit card or subsequently convert it to a
  credit card.
• 668.164(c)(3)

49
Crediting a Students Institution Account
Current Year Charges

• An institution is currently allowed to use Title
  IV, HEA program funds to satisfy a students
• tuition,
• fees,
• room and board charges. and,
• other educationally related charges incurred by
  the student, if written permission is obtained
  from the student or parent, as applicable.
• 668.164(d)(1)

50
Crediting a Students Institution Account Prior
Year Charges

• An institution is currently allowed to use
  current year Title IV, HEA funds to pay for minor
  prior-year charges of less than 100, or more
  than 100 if payment of the charges does not
  prevent the student from paying his or her
  current educational expenses.

51
Crediting a Students Institution Account Prior
Year Charges

• New rules allow an institution to use up to 200
  of Title IV, HEA program funds to satisfy the
  following prior year charges
• Tuition and fees, room, or board and
• Other educationally related charges incurred by
  the student, if written permission is obtained
  from the student or parent.
• 668.164(d)(2)

52
LATE DISBURSEMENTS
53
Late Disbursement Procedures

• Time frame changed from 120 days to 180 days
• Eliminates the appeal procedures reviewed by ED
  staff for late disbursements beyond 120.
• 668.164(g)(4)(i)

54
Recovery of Funds
55
Return to Lender

• A school will be required to return loan funds
  within 240 days of its initial attempt to
  disburse funds directly to a student or parent if
  a check is either returned or not negotiated, or
  if an EFT to a students or parents bank account
  is rejected.
• In the case of FWS funds, only the federal share
  of the students payroll check or EFT payment must
  be returned.

56
Return to Lender

• A school may make additional attempts to disburse
  a returned check or a rejected EFT as long as
  those attempts are made with 45 days of the
  initial attempt. In any case, Title IV loan
  funds may not escheat to the State.
• 668.14(h)

57
Institutional Loan Cancellation Notification
Procedures

• For loan cancellation notifications sent by
  schools on or after 7-1-08. May be implemented
  on or after 11-1-07.

58
School Notification

• Disbursed by check
• Modifies language but does not change school
  notification of loan cancellation procedures if
  the funds are disbursed by check vs. EFT or
  Master Check.
• 668.165(a)(2)(ii)

59
Parent or Student Right to Cancel a Loan
Disbursement (EFT or Master Check)

• Modifies timeframes applicable to notification of
  loan cancellation process for EFT or Master Check
  disbursements.
• Requires school to choose between an Affirmative
  Confirmation Process (requires written
  confirmation by the borrower to the institutional
  notice) vs. a Passive Confirmation process (does
  not require borrowers to reply to the schools
  cancellation notice).
• For EFT or Master Check disbursements only
• 668.165(a)(3)

60
Cancellation Notice for Schools Using
Affirmative Confirmation Process

• School must notify a student of their option to
  cancel their loan (by replying in writing) no
  earlier than 30 days before, and no later than 30
  days after, the school credits the students
  account of the loan.
• 668.165(a)(3)(i)

61
Cancellation notice for Schools Using Passive
Confirmation Process

• School must provide notice that informs student
  of their loan cancellation rights. If the school
  notification process does not require an active
  confirmation, the notice must be sent out no
  earlier than 30 Days But No Later Than 7 Days
  after the school credits the account.
• 668.165(a)(3)(ii)

62
Timeframes for Returning Funds

• Affirmative Confirmation Process If the school
  receives a loan cancellation request and they
  used an Affirmative Confirmation Process, the
  disbursement must be returned, cancelled, or both
  if the request to cancel occurred on the later of
  the first day of the payment period or 14 days
  after the date it sent the notice.
• 668.165(a)(4)(ii)(A)

63
Timeframes for Returning Funds

• Passive Confirmation Process If a loan
  cancellation request is received from the
  borrower, the school would have to return funds
  within 30 days of the date they sent the notice
  of the right to cancel the loan.
• 668.165(a)(4)(ii)(B)

64
Timeframes for Returning Funds

• If a loan cancellation is received beyond the
  period set forth in (a)(4)(ii)(A) or (B), the
  school may return the loan proceeds, or cancel
  the loan, or do both.
• 668.165(a)(A)(iii)

65
Loan Cancellation Notice

• Schools will now be required to inform the
  student or parent in writing of the outcome of
  any loan cancellation request.
• 668.165(a)(5)

66
Definition of the term Affirmative Confirmation

• Affirmative confirmation is a process under
  which a school obtains written confirmation of
  the types and amounts of title IV, HEA program
  loans that a student wants for an award year
  before the school credits the students account
  with those loans funds.
• 668.165(a)(6)(i)

67
Returning Loan Funds Disbursed Directly to a
Student or Parent

• Confirms that schools are not required to return
  any loan proceeds already disbursed directly to a
  student or parent, regardless of the loan
  cancellation process used by the school.
• 668.165(a)(6)(ii)

68
EFT Payments Stored Value Cards

• Effective for EFT transactions initiated by the
  school on or after 7-1-08. May be implemented on
  or after 11-1-07.

69
EFT Payments

• Removes provision previously in 668.165(b)(1)(i)
  that required an institution obtain a students
  authorization to make an EFT payment to a bank
  account.
• 668.165(b)(1)(i)

70
Stored Value Cards

• Allows an institution (with written permission)
  to issue a stored-value card or other similar
  device that enables the student to access credit
  balance funds to pay for educationally related
  expenses.
• 668.165(b)(1)(ii)

71
Excess Cash
72
Definition of Excess Cash and Excess Cash
Allowances

• Excess cash is defined as any amount of title
  IV, HEA program funds, other than Federal Perkins
  Loan Program funds, that an institution does not
  disburse to students or parents by the end of the
  third business day following the date the
  institution
• Received those funds from the Secretary or
• Deposited or transferred to its Federal account
  previously disbursed title IV, HEA program funds
  received from the Secretary, such as those
  resulting from award adjustments, recoveries, or
  cancellations.
• 668.166(a)(1)

73
Definition of Excess Cash and Excess Cash
Allowances

• An institution may maintain excess cash for up to
  a 7-day tolerance period if the amount does not
  exceed 1 of the total amount of fund drawn down
  in the prior award year.
• Any additional amount and any amount maintained
  for more than 7 days must be immediately returned
  to ED.
• 668.166(b)

74
Definition of Excess Cash and Excess Cash
Allowances

• If it is discovered that an institution was not
  in compliance with the excess cash regulations,
  ED may
• Require reimbursement for the costs ED incurred
  in providing the excess cash to the institution
  and
• Provide funds to the institution under the
  reimbursement payment method or cash monitoring
  payment method.
• 668.166(c)

75
Part 674 Federal Perkins Loan Program
76
Definition Changes

• Changes are made to coincide with definition
  changes made to terms in 668.2(b) graduate or
  professional student, half time student, and
  undergraduate student.
• 674.2
• 674.16

77
Part 676 Federal Supplemental Educational
Opportunity Grant Program
78
Definition Changes

• Changes were made to coincide with definition
  changes made to the term undergraduate student,
  as noted in 668.2(b)
• 676.2
• 676.16

79
Part 682 Federal Family Education Loan Program
80
Definition

• Period of Enrollment
• Adds a new language to define bona fide
  academic year as a semester, trimester, or
  quarter in weeks of instructional time, length of
  the students program in weeks of instructional
  time or academic year
• 682.200

81
Minimum Period of Certifying Loan

• Standard Term Programs Single Term Loans
• For programs that measure academic progress in
  credit hours and terms (semesters, trimesters, or
  quarters) this change adds the category, terms
  that are substantially equal in length with no
  term less than nine weeks, to list of terms
  allowed to certify a loan for a single term.
  Final rules clarify that these provisions are not
  restricted to degree programs.

82
Minimum Period of Certifying Loan

• Terms are considered substantially equal in
  length if no term is more than two weeks longer
  than any other term.
• 682.603(f)(1)(i)(A)
• 685.301(a)(9)(i)(A)

83
Minimum Period of Certifying Loan

• Nonstandard Term Programs
• Clarifies that programs that measure academic
  progress in credit hours or clock hours but do
  not use standard terms (semesters, trimester,
  quarters or substantially equal terms) may
  certify a loan for the
• Remaining portion of the program that is less
  than an academic year
• Academic year as defined by the school
• 682.603(f)(1)(ii)(B)(1 2)
• 685.301(a)(9)(i)(B)(1 2)

84
Minimum Period of Certifying Loan

• Transfer Students
• A school with credit or clock hours that receives
  a transfer student from another school and has
  overlapping enrollment periods may certify or
  originate a loan for the remaining portion of the
  program or academic year for the student.

85
Minimum Period of Certifying Loan

• The loan at the new school may not exceed the
  remaining balance of the student's annual loan
  limit, taking into consideration the amount of
  loan proceeds that the student had received at
  the prior school.
• 682.603(f)(1)(ii)
• 685.301(a)(9)(ii)

86
Minimum Period of Certifying Loan

• Completing a Program and Immediately Beginning a
  New Program
• Clarifies a school may certify or originate a
  loan for the remaining portion of the academic
  year for a student who completes a degree program
  at a school and then immediately begins a new
  program at the same school.

87
Minimum Period of Certifying Loan

• The second loan may not exceed the remaining
  balance of the student's annual loan limit at the
  loan level associated with the new program.
• 682.603(f)(1)(iii)
• 685.301(a)(9)(iii)

88
Delivering Loan Proceeds and Counseling Borrowers

• Delivering loan process for payment period
• If a loan period is one payment period, a student
  must successfully complete half the number of
  credit hours or clock hours (in addition to half
  the weeks of instructional time in the payment
  period) before a second delivery of loan funds
  can be made if academic progress is measured in
  clock hours, or measured in credit hours but does
  not use a semester, trimester, or quarter system
  and does not have terms that are substantially
  equal in length with no term less than nine weeks
  in length.

89
Delivering Loan Proceeds and Counseling Borrowers

• For standard terms (being at least nine weeks and
  substantially equal in length), the earliest a
  second disbursement may be made remains the
  calendar mid-point.
• 682.604(c)(6)

90
Delivering Loan Proceeds and Counseling Borrowers

• Retaining loan funds when students fail to begin
  attendance
• Proceeds disbursed to a student will be handled
  in accordance with 668.21, are to be returned to
  the loan program.
• Undelivered loan funds are to be refunded in
  accordance with 668.167 (time frames for
  returning funds to a lender.)
• 682.604(d)(3)

91
Part 685 William D. Ford Federal Direct Loan
Program
92
Definitions

• Miscellaneous Definitions
• The terms full-time student, half-time student,
  graduate or professional student and
  undergraduate student are added to the last of
  definitions in section 685.102(a)(1).
• The definition of those terms are removed from
  section 685 and added to section 668.2 in the
  General Provisions.
• 685.102(a)(1)

93
Definitions

• Period of Enrollment
• Within the definition of period of enrollment
  further defines
• Academic terms as weeks of instructional time,
  and
• Length of the program as weeks of instructional
  time.
• 685.102(b)

94
Origination of a Loan by a Direct Loan School

• Minimum period of enrollment for which a loan can
  be originated
• This requirement is identical to the
  corresponding FFEL requirement found in
  682.602(f)(1)(i) and (ii)except for the term
  difference between certify for FFEL and
  originate for FDLP
• 685.301(a)(9)(i) - (iii)

95
Origination of a Loan by a Direct Loan School

• Disbursement by Payment Period
• This requirement is identical to the
  corresponding FFEL requirement found in
  682.604(c)(6) except for the term difference
  between delivery for FFEL and payment for
  FDLP
• 685.301(b)

96
Origination of a Loan by a Direct Loan School

• Annual Loan Limit Progression
• This requirement is identical to the
  corresponding FFEL requirement found in
  682.603(g)(1a)-(4).
• 685.301(c)(1) (4)

97
Processing Loan Proceeds

• Student fails to begin period of enrollment
• Specific requirements for addressing loan
  proceeds when a student fails to begin the period
  of enrollment are removed from the Direct Loan
  regulations. Instead the requirements are
  identified by reference to 668.21 of the General
  Provisions. Parallel changes are made in the
  FFELP regulations.
• 685.303(b)(3)

98
Part 690 Pell Grants
99
Calculation of a Pell Grant

• Currently, schools use a number of formulas to
  calculate a Pell grant on a payment period basis
  depending on the academic calendar of the
  students program.
• New rules align payments for semester, trimester,
  and quarter programs that have terms for
  different cohorts with different start dates,
  with traditional semester, trimester, and quarter
  programs.

100
Calculation of a Pell Grant

• New rules also modify Pell calculation for clock
  hour and credit hour programs without terms, and
  for correspondence programs without terms.
• 690.63
• 690.66

101
Part 691 Academic Competitiveness and Smart
Grant Program
102
Definition Changes

• Coincides with changes to term undergraduate
  student, noted in 668.2
• 691.2