Students with an SAI equal to or greater than 14,790 (twice the maximum Pell Grant) are ineligible to receive a Pell Grant.
Students who receive grants or scholarships from non-federal sources (institutional, state, or private) that cover their entire cost of attendance (COA) are ineligible to receive a Pell Grant, even if otherwise eligible for the program. Non-federal aid can be reduced to below the COA to preserve Pell Grant eligibility.
Foreign income is now included in the adjusted gross income (AGI) used to calculate Pell Grant eligibility on the FAFSA, making this an automated process.
Federal Direct Loan Changes
Requires institutions to prorate annual loan amounts in direct proportion to the percent of full-time status the student is enrolled.
The steps to apply the schedule of reductions are as follows:
Determine the student's basic eligibility for a Direct Loan in terms of general student eligibility criteria, grade level, enrollment status, intent to enroll, applicable annual loan limit, etc.
Apply the formula: (number of credits enrolled for academic year/number of credit hours considered full time for the academic year) x 100 = annual loan limit percentage.
Calculate the amount of the academic year loan limit that the term represents. For example, in a two-semester academic year, a single term represents half of the annual loan limit.
Apply the formula by term: (number of credit hours enrolled for the term/number of credit hours considered FT for that term) x 100 = annual loan limit percentage.
Apply the Step 4 percentage to the Step 3 result to calculate the loan amount for each term/payment period within the full academic year loan period. Note that this is not a single-term loan period calculation.
