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Volume 7
The Federal Pell Grant Program
Introduction
This volume of the Federal Student Aid Handbook provides information to assist schools in determining student eligibility
for and calculating the amount of Federal Pell Grants.
Significant Changes for 2025326
Throughout Volume 7, all dates, award years, and dollar va... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 0, "page_label": "1", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14... |
Chapter 1
Student Eligibility for Pell Grants
General Eligibility Requirements for Federal Pell Grants
In general, a student must be enrolled in an undergraduate course of study at a non-foreign institution to receive a Pell
Grant. For the Pell Grant program, a student is an undergraduate only if the student has not ea... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 1, "page_label": "2", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14... |
Eligible Postbaccalaureate Program
A student who is enrolled at least half time in a postbaccalaureate teacher certification or licensure program is eligible to
receive a Pell Grant for the period necessary to complete the program if:
The program does not lead to a graduate degree;
The school offering the program does ... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 2, "page_label": "3", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14... |
Pell Eligibility for Incarcerated Students
Section 484(t) of the HEA established Pell Grant eligibility for confined or incarcerated students if they are enrolled in an
eligible Prison Education Program (PEP). A confined or incarcerated individual is eligible to receive a Pell Grant if that
individual enrolls in an eli... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 3, "page_label": "4", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14... |
The child of a parent or guardian who died in the line of duty while either (a) serving on active duty as a member of
the U.S. Armed Forces on or after September 11, 2001; or (b) actively serving as and performing the duties of a
public safety officer; and
Less than 33 years old as of the January 1 prior to the award y... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 4, "page_label": "5", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14... |
Documentation of the student qualifying for a state tuition or other state benefit accorded to the surviving children or
other family members of a public safety officer.
Other documentation the school determines to be from a credible source that describes or reports the circumstances
of the death and the eligible occup... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 5, "page_label": "6", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14... |
CFH
Ineligible IASG or CFH
Indicator
3 3 Not eligible for
IASG/CFH
No Determination IASG or CFH
Indicator
Blank 3 No
Determination
While you do not need to redetermine a student9s eligibility in subsequent award years, you must recertify and report
eligibility annually in FPP. | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 6, "page_label": "7", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14... |
Chapter 2
Calculating Pell Grants
Pell Grant Scheduled Awards are based on information provided on the FAFSA form, the presence of a valid Student Aid
Index (SAI) on the student9s FAFSA Submission Summary or ISIR, the academic year structure (see Volume 3, Chapter 1),
and the Pell Grant cost of attendance (COA) for a f... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 7, "page_label": "8", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14... |
Max Pell
Indicator
Eligibility Criteria
1 The student9s parent(s) is not required to file a federal income tax return.
2 The student9s parent is a single parent and has an AGI greater than zero and less than or equal to 225% of
the poverty guideline for the applicant9s family size and state of residence.
3 The studen... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 8, "page_label": "9", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14... |
For independent student applicants or parents of dependent student applicants who do not have a reported state of legal
residence or whose place of legal residence is outside the U.S., use the poverty estimates for the contiguous 48 states.
Required to File a Federal Income Tax Return
Use IRS Publication 501 for the ap... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 9, "page_label": "10", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:1... |
Calculated Pell Grant (Eligibility Based on SAI and COA)
If the <Pell Grant Eligibility Flag= on the ISIR is set to <Y=, but the <Max Pell Indicator= and <Minimum Pell Indictor= are
blank, the student may be eligible for a calculated Pell Grant.
Calculated Pell Grant Order of Operations
Use the following steps to deter... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 10, "page_label": "11", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
If the student9s calculated Pell Grant is less than the published Min Pell amount for the award year, the student is not
eligible for a calculated Pell Grant. However, the student may still meet eligibility requirements for Min Pell based on AGI,
family size, state of residence, and poverty guidelines, described previo... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 11, "page_label": "12", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
conditions. Regardless of whether coursework is generally offered using terms, schools always have the option of treating
a program as a non-term program for Title IV purposes. See Volume 3, Chapter 1 for detailed guidance on standard term,
nonstandard term, and non-term programs.
When calculating Pell Grants, you must... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 12, "page_label": "13", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
Chapter 3
Pell Grant Enrollment Intensity and Cost of Attendance
Pell Grants and Enrollment Intensity
Enrollment intensity is the percentage of full-time enrollment at which a student is enrolled, rounded to the nearest whole
percent. For example, if full-time enrollment is 12 credit hours and the student is enrolled i... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 13, "page_label": "14", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
2 2 ÷ 12 = .0167 17% Less-than-Half-Time
1 1 ÷ 12 = 0.083 8% Less-than-Half-Time
Note: Enrollment intensity cannot exceed 100% for purposes of Pell Grant proration.
If the student is enrolled less than half time, it will also affect the cost components that are used in the student9s budget
(see
Volume 3, Chapter 2). N... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 14, "page_label": "15", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
the number of weeks in an academic year.
Pell Grant Enrollment Intensity for Clock-Hour or Non-Term-Based Programs
Students enrolled in clock-hour or non-term-based programs are considered to be enrolled full-time for Pell Grant
purposes. See Chapter 4 of this volume for additional discussion of enrollment intesity for... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 15, "page_label": "16", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
time (see section below for additional information).
A student enrolled only in a non-term correspondence program always has their award calculated based on 50%
enrollment intensity. For a student enrolled in a term-based correspondence program, your school must determine
whether the student is enrolled half time (six ... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 16, "page_label": "17", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
Determining Enrollment Intensity Using Credit Hour Equivalencies
For students enrolled in direct assessment programs and students with intellectual disabilities enrolled in comprehensive
transition and postsecondary (CTP) programs, enrollment intensity can be calculated using credit hour <equivalencies=
rather than cre... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 17, "page_label": "18", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
of the program.
There are two ways to prorate Pell costs, as shown in the following examples. Examples 3 and 4 are based on a program
that is shorter than an academic year. Example 5 shows how costs are prorated when they are charged for a program that
is longer than an academic year. Note that prorating the COA usuall... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 18, "page_label": "19", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
Less Than Half Time Pell Grant Cost of Attendance
As stated above, the value of each component in the Pell Grant COA is always based on the costs for a full-time student
for a full academic year. However, students enrolled less than half time may only have certain components included in
their COA. You may not include e... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 19, "page_label": "20", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
The student is eligible for Max Pell, which is $7,500 for demonstration purposes. As a full-time student, the Pell Grant COA
($9,000) is greater than the Pell Grant amount ($7,500), so the student9s Scheduled Award is $7,500. However, since the
less-than-half-time Pell Grant COA ($3,500) is less than the Pell Grant amo... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 20, "page_label": "21", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
Chapter 4
Calculating Annual Awards Using Pell Grant Formulas
Fractions and Rounding
Use the following rules on fractions and rounding along with Pell Formulas 1-5 (discussed later) to properly calculate and
award Pell Grants.
Fractions
When using fractions, be careful to multiply first, and then divide to avoid an inc... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 21, "page_label": "22", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
1. The academic calendar consists of two semesters or trimesters (fall and spring) or three quarters (fall, winter,
and spring), none of which overlap any other term in the program (including a summer term, which need not
meet the definition of a standard term); or
2. The academic calendar consists of any two semesters... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 22, "page_label": "23", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
Quarter Disbursement Schedule
Fall Winter Spring
Credit Hours (Enrollment Intensity %) 12 (100%) 15 (100%) 12 (100%)
Annual Pell Award $2,500 $2,500 $2,500
Since the student is enrolled full time in either two semesters or three quarters, they will have received a full
Scheduled Award at the end of the spring term. If ... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 23, "page_label": "24", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
Disbursement Schedule (Full-time)
Fall Spring
Credit Hours (Enrollment Intensity %) 12 (100%) 15 (100%)
Annual Pell Award $3,750 $3,750
If the same student enrolls in 12 credits in the fall and but reduces their spring enrollment to 9 credits before the
start of the spring semester, their spring payment will be based o... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 24, "page_label": "25", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
Formula 1 Alternate Calculation
If a standard-term program meets the requirements to use Formula 1 or Formula 2, you have the option of dividing the
annual award by the number of all the terms (including the summer term) in the award year.
Pell Formula 2: Standard-Term Programs with Less Than 30 Weeks in the Fall Throu... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 25, "page_label": "26", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
of instructional time. Formula 2 may be advantageous for your summer term calculations as it allows you to pay the same
Pell amount for the summer term as you would for a traditional fall through spring term. You may use Formula 2 if the
program:
Has an academic calendar that consists of two semesters or trimesters (in... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 26, "page_label": "27", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
Formula 2 Alternate Calculation
Under Formula 2, you can perform the same alternate calculation as performed under Formula 1 if the weeks of
instructional time in the defined academic year are the same as the total number of weeks of instructional time in all the
terms in the award year.
Pell Formula 3: General Formula... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 27, "page_label": "28", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
Disbursement Schedule
Fall (14 weeks) Spring (14 weeks)
Credit Hours (Enrollment Intensity %) 12 (100%) 15 (100%)
Calculation ($7,500 x 14) ÷ 30 ($7,500 x 14) ÷ 30
Annual Pell Award $3,500 $3,500
A single disbursement for a payment period generally cannot be for more than 50% of the annual award. If the
disbursement am... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 28, "page_label": "29", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
Enrollment Intensity Standards for Nonstandard Terms
If you are using Formula 3 for a program that contains standard terms, the minimum full-time enrollment standards
previously discussed would still apply for the standard terms. However, if a program has nonstandard terms, the full-time
enrollment standard must be cal... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 29, "page_label": "30", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
trimesters, or quarters), the school must use Formula 3 to calculate Pell Grant disbursements for students in the
program.
Scheduled Award: $7,500
Full-time calculation: (8 weeks in term x 40 quarter hours) ÷ 32 weeks in academic year
Full time: 10 quarter hours
To determine the student9s payment for each payment perio... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 30, "page_label": "31", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
Pell Formula 4: Clock-Hour and Non-Term Credit-Hour Programs
All clock-hour and non-term credit-hour programs must use Formula 4.
Enrollment Intensity in Clock-Hour and Non-Term Credit-Hour Programs
For clock-hour programs and for non-term credit-hour programs, enrollment intensity only makes a difference if the
studen... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 31, "page_label": "32", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
As in the case of the other formulas, you must perform comparable prorations of the award for each payment period in
the student9s program. The calculation for the payment period prorates a student9s Scheduled Award based on either (1)
the number of credit or clock hours in the payment period compared to the credit or ... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 32, "page_label": "33", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
Coursework Completion Requirement and Withdrawal/Re-entry in Non-term Programs
Students in non-term programs must successfully complete a payment period to receive subsequent payments. We
discuss the effect of withdrawal and re-entry into a program in Volume 5.
Pell Formula 5: Calculations for Correspondence Study Prog... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 33, "page_label": "34", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
The cost of attendance (COA) for students engaged in a program of study by correspondence must include tuition and
fees and, if required, books, course materials, supplies, and equipment. A school may also include an allowance for travel,
housing, and food costs incurred specifically for a period of residential trainin... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 34, "page_label": "35", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
1. Formula 5A (which is like Formula 4) is used for non-term programs, and
2. Formula 5B (which is like Formula 3) is used for term-based programs.
For a residential component of a correspondence program, you must use either Formula 3 or Formula 4. If the residential
component is a term, you must Formula 3; otherwise, ... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 35, "page_label": "36", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
If a correspondence student has one or more payment periods in an award year that contain only correspondence study,
and one or more payment periods in the same award year that contain a residential portion, your school will use two
different formulas for determining a student9s payment for each payment period. This is... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 36, "page_label": "37", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
Chapter 5
Summer Terms, Crossover Payment Periods, and Year-Round Pell
Payment periods don9t always fall neatly into one award year or another. A payment period that begins before July 1 and
ends on or after July 1 is called a <crossover payment period.= The formula for calculating the payment for a crossover
payment p... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 37, "page_label": "38", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
Pell Grant COA for Summer Terms
Costs used to determine Pell Grant eligibility for summer terms are figured in the same way as for any other payment
period; that is, the costs are based on the costs for a full-time student for a full academic year. If your school has fall and
spring semesters that comprise an academic ... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 38, "page_label": "39", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
When you combine the modules into a single term, a student cannot be paid more than the amount for one payment
period for completing any combination of the modules. If the modules are not combined into a single payment period and
they do not overlap each other, you must treat each module as a separate nonstandard term ... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 39, "page_label": "40", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
Year-Round Pell Grant
Students may be eligible to receive up to 150% of their Pell Grant Scheduled Award for an award year. This provision is
called "Year-Round Pell" or "additional Pell=. Students eligible for Year-Round Pell awards are subject to the normal
duration of eligibility rules and LEU limits.
Year-Round Pel... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 40, "page_label": "41", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
HEA Section 401(b)(9)
Dear Colleague Letter GEN-17-06
Volume 7, Chapter 5, Example 5: Year-Round Pell at a Semester School with Part-Time Enrollment
A student attends a school which provides coursework on a semester calendar, defines full time as 12 credits, and
awards Pell using Formula 1. The student9s enrollment beg... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 41, "page_label": "42", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
Award, for a maximum total of $10,500.
Adding $1,750 to the $7,000 the student has already received, the school sees that the student will be awarded a
total of $8,750 for 2025-26, which is within their $10,500 Year-Round Pell maximum. Note that the school does
not increase the student9s final award for the award year ... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 42, "page_label": "43", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
Chapter 6
Transfer Students and Remaining Eligibility
Calculating and Awarding Remaining Eligibility
The Pell payment for a transfer student is calculated in the same way as for any new student. That is, you must calculate
payments for each payment period following the rules given in previously in this volume. However,... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 43, "page_label": "44", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
new school.
School B may pay the student a Pell Grant only for that portion of an academic year in which the student is enrolled and in
attendance at School B. The grant must be adjusted, as necessary, to ensure that the funds received by the student for
the award year do not exceed the student9s Scheduled Award for th... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 44, "page_label": "45", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
NSLDS Financial Aid History and Transfer Monitoring
Before disbursing
Title IV funds to a transfer student, you must obtain a financial aid history for the student and must
inform NSLDS about the transfer student so that you can receive updates through the Transfer Student Monitoring
Process. The financial aid history... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 45, "page_label": "46", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
information, as reported by the schools to the COD System, for the schools involved.
Pell Potential Overaward Process
A student may receive disbursements from more than one school during an award year. When more than one school
reports disbursements for a student, the COD System checks to make sure the student has not ... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 46, "page_label": "47", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
terminate a school9s participation in the Title IV programs.
Regarding COD processing and POPs:
The COD System accepts disbursement information from a maximum of three schools for a student in a POP
situation.
The COD System does not prevent the same schools from creating another POP situation for the same student.
Sch... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 47, "page_label": "48", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
Chapter 7
Initial Calculations, Recalculations, and Overawards
Initial Pell Calculation
An initial calculation is the first calculation that is made on or after the date the school has received a Department-
produced SAI such as the student9s initial FAFSA Submission Summary or ISIR with an official SAI and a Pell Elig... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 48, "page_label": "49", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
Pell Recalculation Due to Change in Enrollment Intensity
The process for recalculating a student9s Pell Grant award due to changes in enrollment intensity depends on when the
change occurs.
Change in Enrollment Intensity
Between Academic Terms
In a credit-hour program that uses terms, you must calculate a student9s pa... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 49, "page_label": "50", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
The regulations don9t require recalculation of Pell Grant awards based on changes in enrollment intensity during a
payment period after the student has begun attendance in all their classes. However, your school may have a
policy of recalculating awards in this situation. Your school9s recalculation policy must be docu... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 50, "page_label": "51", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
with compressed coursework. In this circumstance, you must use the student9s effective enrollment intensity on the date
of the initial calculation, and there is no recalculation of the student9s Pell Grant for the term due to a subsequent change
in enrollment intensity, if the student began attendance in each class.
If... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 51, "page_label": "52", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
enrollment intensity changes before the disbursement is made. If the student withdraws from all classes (or doesn9t begin
attending any classes), you must follow the procedures discussed in Volume 5.
Pell Recalculation Due to Change in COA
When a student9s COA changes during the award year, and their enrollment intensi... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 52, "page_label": "53", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
The recalculation requirement described above applies only to clock-hour programs, and it applies regardless of the
length of the program or remaining portion of a program. For example, if a student who received Pell Grant funds for
enrollment in a 600 clock-hour program meets the graduation requirements after completi... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 53, "page_label": "54", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
Declining and/or Returning Pell Funds
A student may decline or return all or part of a disbursement of Pell Grant funds that they are eligible to receive or have
received. However, returns may only be made in the same award year as the funds were received. You are not required to
comply with a student9s request to decl... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 54, "page_label": "55", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
Chapter 8
Pell Grant Lifetime Eligibility Used (LEU)
Duration of Eligibility
Per the
Consolidated Appropriations Act, 2012, a student9s maximum duration of Pell eligibility is six Scheduled Awards, as
measured by the percentage of <Lifetime Eligibility Used= (LEU) field in COD (one Scheduled Award equals 100% LEU). A
... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 55, "page_label": "56", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
To calculate an award for a student whose LEU level will reduce the student9s eligibility (i.e., an LEU greater than 450%
but less than 600%), you must first check the most current LEU level in COD. Subtract the LEU percentage from 600%,
then multiply the student9s Scheduled Award by the resulting percentage. For examp... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 56, "page_label": "57", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
Changes in LEU
A student9s LEU changes whenever they receive a Pell Grant disbursement and may change any time a student9s
Scheduled Award is adjusted (up or down). It may also change through an LEU adjustment based on an LEU Dispute,
Closed School Restoration, Restoration for Eligible Loan Discharge, or other adjustme... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 57, "page_label": "58", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
In 2021, the FAFSA Simplification Act codified Pell LEU Restoration for Closed Schools into law and expanded the
restoration of Pell Grant eligibility to include students who received a closed school, false certification, identity theft, or
borrower defense loan discharge. This expanded authority is known as <Pell LEU ... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 58, "page_label": "59", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
COD Warning Edits (#221 for Closed School adjustments; #229 for Loan Discharge adjustments);
Targeted emails with instructions to download a list of affected students from the COD Web;
NSLDS post screening;
Updated LEU within response file; and
Details of the LEU adjustment(s) displayed on the students9 Pell LEU Histor... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 59, "page_label": "60", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
Appendix A
Pell Formula Summaries
Formula 1 Summary
Standard-term, credit-hour programs, including subscription-based programs, with 30 weeks of instructional time (or
waiver applies). For a program with a traditional academic calendar, the program:
must have an academic calendar that consists, in the fall through spri... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 60, "page_label": "61", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
Formula 2 Summary
Standard-term, credit-hour programs, including subscription-based programs, with fewer than 30 weeks of instructional
time, and waiver does not apply.
Enrollment for at least 12 credit hours each term required for full-time status
Program terms don9t overlap
Academic calendar includes two semesters/tr... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 61, "page_label": "62", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
Formula 4 Summary
Clock-hour programs and credit-hour programs without terms, residential portion of non-term correspondence programs.
Full-time, full academic year costs.
Cost for program or period not equal to academic year prorated. Two fractions are compared:
Hours in program9s definition of academic year ÷ Hours t... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 62, "page_label": "63", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
Formula 5A Summary
Correspondence programs non-term correspondence component. For residential portion, use Formula 4 to calculate
payment periods and amounts. The schedule for the submission of lessons must reflect a workload of at least 12 hours of
preparation per week of instructional time.
Step 5: Calculate Payment ... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 63, "page_label": "64", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
Formula 5B Summary
Programs of study by correspondence, term correspondence component. During each term, the written schedule for the
submission of lessons must reflect a workload of at least 30 hours of preparation per semester hour or at least 20 hours of
preparation per quarter hour.
Step 1: Determine Enrollment Int... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418114032Z00'00'", "moddate": "D:20250418114032Z00'00'", "source": "data/raw/The_Federal_Pell_Grant_Program.pdf", "total_pages": 65, "page": 64, "page_label": "65", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:... |
Volume 8
The Direct Loan Program
Introduction
Under the William D. Ford Federal Direct Loan Program (Direct Loan Program), the U.S. Department of Education (the
Department) makes loans to help students and parents pay the cost of attendance (COA) at a postsecondary school. This
volume of the
Federal Student Aid Handbo... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 0, "page_label": "1", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.400001... |
Chapter 1
Student and Parent Eligibility for Direct Loans
Overview
To be eligible for Direct Loans, a student must be enrolled on at least a half-time basis at a school that participates in the
Direct Loan Program, and students and parents must meet the general federal student aid eligibility requirements
covered in Vo... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 1, "page_label": "2", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.400003... |
information, see the discussion under <Direct Subsidized Loans and Direct Unsubsidized Loans= in DCL GEN-11-07.
Direct Unsubsidized Loans for Students Whose Parents Have Ended Financial Support or Refuse To File a FAFSA Form
If you verify that the parents of a dependent undergraduate student have refused to complete th... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 2, "page_label": "3", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.400003... |
student. For example, if a student9s biological or legal adoptive parents are divorced, they may decide to each take out a
Direct PLUS Loan for an agreed upon amount (not to exceed the student9s COA, minus other financial assistance (OFA)) to
help pay for the cost of the student9s education.
Requirement for Dependent S... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 3, "page_label": "4", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.400004... |
If your school participates in the Direct PLUS program but a student9s parent cannot obtain a Direct PLUS Loan, the
student is allowed to borrow additional unsubsidized funds (see <Criteria for Dependent Students to Receive Additional
Direct Unsubsidized Loan Funds= in Chapter 4 of this volume).
Required Counseling for... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 4, "page_label": "5", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.400005... |
"Y" = The borrower is in default on a Title IV loan.
"E" = Unable to determine if the borrower is in default on a Title IV loan.
If the result is "N," a student or parent Direct PLUS Loan applicant who meets all other Direct PLUS Loan eligibility
requirements may receive a Direct PLUS Loan.
If the result is "Y," the st... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 5, "page_label": "6", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.400006... |
Direct Loans at Multiple Schools
A student who is concurrently enrolled and eligible at more than one school may receive Direct Loans at each school. If
the student is receiving Direct Subsidized Loans or Direct Unsubsidized Loans, the schools that the student is attending
are responsible for coordinating to make sure ... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 6, "page_label": "7", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.400007... |
A student may take the preparatory courses at School A (as long as the courses are part of an eligible program there) that
are required for admission into a program at School B. As the awarding school, School A may require documentation from
School B that these courses are required for the student9s subsequent enrollme... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 7, "page_label": "8", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.400007... |
Direct Loan Eligibility After an Enrollment Status Change
If a student who received a disbursement of Direct Loan funds prior to the first day of classes of a payment period begins
attendance on a less-than-half-time basis, there is no requirement for the school or the student to return the loan funds as
long as:
The s... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 8, "page_label": "9", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.400008... |
Direct Loan Eligibility After Inadvertent Overborrowing
A student who has inadvertently received Direct Loan funds in excess of the annual or aggregate loan limits is ineligible to
receive any Title IV funds until the overborrowing is resolved. As explained in more detail below, the student can regain
eligibility for a... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 9, "page_label": "10", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.40000... |
Repayment of the Excess Loan Amount
If a student who has inadvertently overborrowed wishes to regain
Title IV eligibility by repaying the excess loan amount,
the student must contact the applicable servicer and comply with the servicer9s repayment instructions. The school may
assist the student in identifying and cont... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 10, "page_label": "11", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.4000... |
Refusing To Originate a Loan or Originating for Less Than a Borrower9s Maximum Eligibility
On a case-by-case basis, you may refuse to originate a Direct Loan for an individual borrower, or you may originate a loan
for an amount less than the borrower9s maximum eligibility. If you choose to exercise this discretion, you... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 11, "page_label": "12", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.4000... |
Chapter 2
Direct Loan Counseling
Counseling Overview
First-time student borrowers must complete entrance counseling before they can receive the first disbursement of a
Direct Loan, and all student Direct Loan borrowers must complete exit counseling shortly before they cease to be enrolled
on at least a half-time basis.... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 12, "page_label": "13", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.4000... |
You cannot require, but you can encourage borrowers to participate in counseling beyond entrance counseling to be
better informed about borrowing, the terms of their Direct Loans, their repayment responsibilities and options, and the
consequences of default. Your school can also offer financial literacy classes, on a c... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 13, "page_label": "14", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.4000... |
completing their program of study so that the school can provide exit counseling;
Provide information on how the borrower can access their records in the National Student Loan Data System
(NSLDS); and
Provide the name of the individual the borrower may contact if the borrower has questions about the borrower9s
rights a... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 14, "page_label": "15", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.4000... |
Exit Counseling
A Direct Subsidized Loan, Direct Unsubsidized Loan, or student Direct PLUS Loan borrower who is graduating, leaving
school, or dropping below half-time enrollment is required to complete exit counseling. If the student withdraws without
notifying your school, you must confirm that they have completed on... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 15, "page_label": "16", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.4000... |
provided by those companies are already offered free of charge through the Department or the borrower's loan
servicer;
Provide a general description of the types of tax benefits that may be available to borrowers (i.e. student loan
interest deduction); and
Require the borrower to provide current information concerning ... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 16, "page_label": "17", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.4000... |
Regardless of the counseling methods your school uses, it must document that the student received entrance and exit
counseling, and it must ensure that an individual with expertise in the Title IV programs is reasonably available shortly
after the counseling to answer the student9s questions.
Counseling for Corresponde... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 17, "page_label": "18", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.4000... |
Annual Student Loan Acknowledgement allows student and parent borrowers to view how much they currently owe in
federal student loans and acknowledge that they have seen this amount. Although it is not required, the Department
continues to encourage borrowers to complete an Annual Student Loan Acknowledgement each year ... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 18, "page_label": "19", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.4000... |
Chapter 3
Direct Loan Origination, Loan Periods, and Disbursements
Origination Overview
Origination is the process of creating a Direct Loan award in the school9s system. Before originating a Direct Loan, a
school must determine the student9s or parent9s eligibility for the loan. For each Direct Loan that a school disb... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 19, "page_label": "20", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.4000... |
COA (see Volume 3, Chapter 3);
For parents receiving a Direct PLUS Loan, ensure that the student has completed a FAFSA form (review the student9s
ISIR or FAFSA Submission Summary); and
Ensure that the loan disbursement dates meet cash management and disbursement requirements.
For a Direct Subsidized/Unsubsidized Loan, ... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 20, "page_label": "21", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.4000... |
No Minimum Direct Loan Amount in COD System
The COD System does not set a minimum amount for which a school may originate a Direct Loan.
Sequestration
The Budget Control Act (BCA) put into place an automatic federal budget cut known as the sequester. For loans made
under the Direct Loan program, the sequester requires ... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 21, "page_label": "22", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.4000... |
If you discover that, due to an error, a student borrower has received Direct Subsidized Loan funds in excess of their
financial need, and the student is still enrolled for the loan period, you must return the subsidized loan amount for which
the student was ineligible and ask the student if they wish to replace the su... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 22, "page_label": "23", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.4000... |
period are separated by one or more terms in which the student is ineligible. For example, if a student is expected to be
enrolled on at least a half-time basis in the fall and spring quarters of an academic year consisting of the fall, winter, and
spring quarters, but the student indicates that they do not plan to att... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 23, "page_label": "24", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.4000... |
2. Nonstandard terms that are substantially equal, but one or more of the terms in the academic year
contains fewer than nine weeks.
Non-
SE9W
3. Nonstandard terms that are not substantially equal in length (one or more of the terms in the academic
year differs in length from another term by more than two weeks).
Non... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 24, "page_label": "25", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.4000... |
hour, or non-SE9W nonstandard term program is offered in modules, the minimum loan period is still the lesser of the
academic year or the program length (or remaining portion of the program).
For Title IV aid purposes, students are allowed to skip one or more modules. However, if a loan period includes modules
that the... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 25, "page_label": "26", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.4000... |
amount.
Direct Loan Disbursements When the Loan Period is a Single Payment Period
As explained in
Volume 3, Chapter 1, all Title IV program funds (including Direct Loan funds) except for Federal Work-
Study payments must be disbursed on a payment period basis. Except in certain cases for Direct Loans made to cover the... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 26, "page_label": "27", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.4000... |
Regardless of the length of the loan period, you may disburse a Direct Loan in a single installment if the loan is to cover a
student's COA in a study abroad program and your school9s calculated cohort default rate is less than 5% for the most
recent fiscal year for which data are available.
Direct Loan Disbursements f... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 27, "page_label": "28", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.4000... |
may not notify the school or the loan servicer right away, particularly if the parent borrower had requested a deferment of
payments while the student was enrolled at least half time.
If a school is required to return Direct PLUS Loan funds that were disbursed after the date of the parent borrower9s death,
the school s... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 28, "page_label": "29", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.4000... |
If a loan period includes more than one standard or SE9W nonstandard term, the second or subsequent disbursement
of a Direct Loan disbursement normally can be made up to 10 days before the first day of classes of the second or
subsequent term. However, if a second or subsequent term in a loan period includes clinical w... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 29, "page_label": "30", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.4000... |
Chapter 4
Annual and Aggregate Loan Limits
Annual Loan Limit Overview
Direct Subsidized Loans and Direct Unsubsidized Loans have annual loan limits that vary based on the student9s grade
level and (for Direct Unsubsidized Loans) dependency status. The annual loan limits are the maximum amounts that a
student may receiv... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 30, "page_label": "31", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.4000... |
For dependent undergraduate students (excluding dependent undergraduates whose parents are unable to obtain Direct
PLUS Loans), the combined Direct Subsidized Loan and Direct Unsubsidized Loan annual loan limits are shown in Table 1A
below.
The <Total (Subsidized and Unsubsidized)= limits in Table 1A represent the tota... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 31, "page_label": "32", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.4000... |
First Year $9,500 $3,500
Second Year $10,500 $4,500
Third Year and Beyond $12,500 $5,500
Criteria for Dependent Students to Receive Additional Direct Unsubsidized Loan Funds
Dependent students whose parents are unable to borrow Direct PLUS Loans due to adverse credit or other exceptional
circumstances may receive addit... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 32, "page_label": "33", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.4000... |
additional Direct Unsubsidized Loan funds to the student. However, the Direct PLUS Loan funds that the parent previously
received during the same period of enrollment must be treated as OFA when determining the additional Direct
Unsubsidized Loan amount that the student is eligible to receive.
A Parent Is Unable To Bor... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 33, "page_label": "34", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.4000... |
Volume 8, Chapter 4, Table 1C: Graduate and Professional Student Annual Limits for Direct Unsubsidized Loans
Graduate and Professional Students Total (Unsubsidized Only)
All years $20,500
Loan Limit Level for Transfer Students
If you9re awarding a Direct Loan to a student who is transferring from a program at another ... | {"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 34, "page_label": "35", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.4000... |
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