Sec. 7. Federal Pell Grants: amount and determinations; applications
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Beginning on the effective date described in subsection (b), section 401 ( 20 U.S.C. 1070a ), as amended by sections 5 and 6, is further amended to read as follows: The purpose of this subpart is to provide a Federal Pell Grant to low-income students. In this section— the term adjusted gross income means— in the case of a dependent student, the adjusted gross income (as defined in section 62 of the Internal Revenue Code of 1986) of the student’s parents in the second tax year preceding the academic year; and in the case of an independent student, the adjusted gross income (as defined in section 62 of the Internal Revenue Code of 1986) of the student (and the student’s spouse, if applicable) in the second tax year preceding the academic year; the term family size has the meaning given the term in section 480(l); the term poverty line means the poverty line (as determined under the poverty guidelines updated periodically in the Federal Register by the Department of Health and Human Services under the authority of section 673(2) of the Community Services Block Grant Act ( 42 U.S.C. 9902(2) )) applicable to the student's family size and applicable to the second tax year preceding the academic year; the term single parent means— a parent of a dependent student who was a head of household (as defined in section 2(b) of the Internal Revenue Code of 1986) or a surviving spouse (as defined in section 2(a) of the Internal Revenue Code of 1986) or was an eligible individual for purposes of the credit under section 32 of such Code, in the second tax year preceding the academic year; or an independent student who was a head of household (as defined in section 2(b) of the Internal Revenue Code of 1986) or a surviving spouse (as defined in section 2(a) of the Internal Revenue Code of 1986) or was an eligible individual for purposes of the credit under section 32 of such Code, in the second tax year preceding the academic year; the term total maximum Federal Pell Grant means the total maximum Federal Pell Grant award per student for any academic year described under paragraph (5); and the term minimum Federal Pell Grant means the minimum amount of a Federal Pell Grant that shall be awarded to a student eligible under this subpart for any academic year in which that student is attending full time, which shall be equal to 10 percent of the total maximum Federal Pell Grant for such academic year.
Subject to paragraphs
(2)and (3), the amount of a Federal Pell Grant for a student eligible under this subpart shall be determined in accordance with the following: A student eligible under this subpart shall be eligible for a total maximum Federal Pell Grant for an academic year in which the student is enrolled in an eligible program full time— if the student or, in the case of a dependent student, the dependent student’s parent, is not required to file a Federal income tax return in the second year preceding the academic year; if the student or, in the case of a dependent student, the dependent student’s parent, is a single parent, if the adjusted gross income is equal to or less than 210 percent of the poverty line; or if the student or, in the case of a dependent student, the dependent student’s parent, is not a single parent, if the adjusted gross income is equal to or less than 160 percent of the poverty line. A student eligible under this subpart who is not eligible for a total maximum Federal Pell Grant under subparagraph
(A)for an academic year, shall be eligible for a Federal Pell Grant for an academic year in which the student is enrolled in an eligible program full time in an amount that is not more than the amount determined in accordance with the following: If the student or, in the case of a dependent student, the dependent student’s parent, is a single parent and the adjusted gross income is greater than 210 percent of the poverty line and is less than 310 percent of the poverty line, the amount shall be equal to the greater of— the minimum Federal Pell Grant for the academic year; and the total maximum Federal Pell Grant for the academic year, minus the product of— the adjusted gross income, less an amount equal to 210 percent of the poverty line; and the total maximum Federal Pell Grant for the academic year, divided by an amount equal to 100 percent of the poverty line. If the student or, in the case of a dependent student, the dependent student’s parent, is not a single parent and the adjusted gross income is greater than 160 percent of the poverty line and is less than 260 percent of the poverty line, the amount shall be equal to the greater of— the minimum Federal Pell Grant for the academic year; and the total maximum Federal Pell Grant for the academic year, minus the product of— the adjusted gross income, less an amount equal to 160 percent of the poverty line; and the total maximum Federal Pell Grant for the academic year, divided by an amount equal to 100 percent of the poverty line. In any case where a student is enrolled in an eligible program of an institution of higher education on less than a full-time basis (including a student who attends an institution of higher education on less than a half-time basis) during any academic year, the amount of the Federal Pell Grant to which that student is entitled shall be reduced in direct proportion to the degree to which that student is not so enrolled on a full-time basis, rounded to the nearest whole percentage point, as provided in a schedule of reductions published by the Secretary computed in accordance with this subpart. Such schedule of reductions shall be published in the Federal Register in accordance with section 482 of this Act. Such reduced Federal Pell Grant for a student enrolled on a less than full-time basis shall also apply proportionally to students who are otherwise eligible to receive the minimum Federal Pell Grant, if enrolled full-time. No Federal Pell Grant under this subpart shall exceed the cost of attendance (as defined in section 472) at the institution at which that student is in attendance. If, with respect to any student, it is determined that the amount of a Federal Pell Grant for that student exceeds the cost of attendance for that year, the amount of the Federal Pell Grant shall be reduced until the Federal Pell Grant does not exceed the cost of attendance at such institution. Notwithstanding any other provision of this subpart, the Secretary shall allow the amount of the Federal Pell Grant to be exceeded for students participating in a program of study abroad approved for credit by the institution at which the student is enrolled when the reasonable costs of such program are greater than the cost of attendance at the student's home institution, except that the amount of such Federal Pell Grant in any fiscal year shall not exceed the maximum amount of a Federal Pell Grant for which a student is eligible under paragraph
(1)or
(2)during such award year. If the preceding sentence applies, the financial aid administrator at the home institution may use the cost of the study abroad program, rather than the home institution's cost, to determine the cost of attendance of the student. For award year 2021–2022, and each subsequent award year, the total maximum Federal Pell Grant award per student shall be equal to the sum of— $1,080; and the amount specified as the maximum Federal Pell Grant in the last enacted appropriation Act applicable to that award year. The total maximum Federal Pell Grant for any award year shall be rounded to the nearest $5. To carry out this section for each of fiscal years 2021 through 2030— there are authorized to be appropriated and are appropriated (in addition to any other amounts appropriated to carry out this section and out of any money in the Treasury not otherwise appropriated) such sums as are necessary to carry out paragraph (5)(A)(i); and such sums as may be necessary are authorized to be appropriated to carry out paragraph (5)(A)(ii). In addition to any funds appropriated under paragraph
(6)and any funds made available for this section under any appropriations Act, there are authorized to be appropriated, and there are appropriated (out of any money in the Treasury not otherwise appropriated) to carry out this section, $1,145,000,000 for fiscal year 2021 and each subsequent award year. The amendments made to this section by the Student Aid Improvement Act of 2019 shall not— increase or decrease the amounts that have been appropriated or are available to carry out this section for fiscal year 2017, 2018, 2019, or 2020 as of the day before the effective date of such Act; or extend the period of availability for obligation that applied to any such amount, as of the day before such effective date. For each fiscal year through fiscal year 2030, the Secretary shall pay to each eligible institution such sums as may be necessary to pay each eligible student for each academic year during which that student is in attendance at an institution of higher education as an undergraduate, a Federal Pell Grant in the amount for which that student is eligible. Nothing in this section shall be interpreted to prohibit the Secretary from paying directly to students, in advance of the beginning of the academic term, an amount for which they are eligible, in the cases where an eligible institution does not participate in the disbursement system under subparagraph (A). Effective in the 2017–2018 award year and thereafter, the Secretary shall award an eligible student not more than one and one-half Federal Pell Grants during a single award year to permit such student to work toward completion of an eligible program if, during that single award year, the student has received a Federal Pell Grant for an award year and is enrolled in an eligible program for one or more additional payment periods during the same award year that are not otherwise fully covered by the student's Federal Pell Grant. In the case of a student receiving more than one Federal Pell Grant in a single award year under subparagraph (A), the total amount of Federal Pell Grants awarded to such student for the award year may exceed the total maximum Federal Pell Grant available for an award year. Any period of study covered by a Federal Pell Grant awarded under subparagraph
(A)shall be included in determining a student's duration limit under subsection (d)(5). In any case where an eligible student is receiving a Federal Pell Grant for a payment period that spans 2 award years, the Secretary shall allow the eligible institution in which the student is enrolled to determine the award year to which the additional period shall be assigned, as it determines is most beneficial to students. Notwithstanding any other provision of this title, the total maximum Federal Pell Grant shall be provided to a student described in paragraph (2). Paragraph
(1)shall apply to any dependent or independent student— who is eligible to receive a Federal Pell Grant for the award year for which the determination is made; whose parent or guardian was— an individual who, on or after September 11, 2001, died in the line of duty while serving on active duty as a member of the Armed Forces; or actively serving as a public safety officer and died in the line of duty while performing as a public safety officer; and who is less than 33 years of age. Notwithstanding any other provision of law, the Secretary shall establish the necessary data-sharing agreements with the Secretary of Veterans Affairs and the Secretary of Defense, as appropriate, to provide the information necessary to determine which students meet the requirements of paragraph (2). Notwithstanding section 1212 of the Omnibus Crime Control and Safe Streets Act of 1968 ( 34 U.S.C. 10302 ), in the case of a student who receives an increased Federal Pell Grant amount under this section, the total amount of such Federal Pell Grant, including the increase under this subsection, shall not be considered in calculating that student’s educational assistance benefits under the Public Safety Officers’ Benefits program under subpart 2 of part L of title I of such Act. For purposes of this subsection, the term public safety officer means— a public safety officer, as defined in section 1204 of title I of the Omnibus Crime Control and Safe Streets Act of 1968 ( 34 U.S.C. 10284 ); or a fire police officer, defined as an individual who— is serving in accordance with State or local law as an officially recognized or designated member of a legally organized public safety agency; is not a law enforcement officer, a firefighter, a chaplain, or a member of a rescue squad or ambulance crew; and provides scene security or directs traffic— in response to any fire drill, fire call, or other fire, rescue, or police emergency; or at a planned special event. The period during which a student may receive Federal Pell Grants shall be the period required for the completion of the first undergraduate baccalaureate course of study being pursued by that student at the institution at which the student is in attendance, except that any period during which the student is enrolled in a noncredit or remedial course of study, as described in paragraph (2), shall not be counted for the purpose of this paragraph. Nothing in this section shall exclude from eligibility courses of study which are noncredit or remedial in nature (including courses in English language instruction) which are determined by the institution to be necessary to help the student be prepared for the pursuit of a first undergraduate baccalaureate degree or certificate or, in the case of courses in English language instruction, to be necessary to enable the student to utilize already existing knowledge, training, or skills. Nothing in this section shall exclude from eligibility programs of study abroad that are approved for credit by the home institution at which the student is enrolled. No student is entitled to receive Pell Grant payments concurrently from more than one institution or from the Secretary and an institution. Notwithstanding paragraph (1), the Secretary may allow, on a case-by-case basis, a student to receive a Federal Pell Grant if the student— is carrying at least one-half the normal full-time work load for the course of study the student is pursuing, as determined by the institution of higher education; and is enrolled or accepted for enrollment in a postbaccalaureate program that does not lead to a graduate degree, and in courses required by a State in order for the student to receive a professional certification or licensing credential that is required for employment as a teacher in an elementary school or secondary school in that State, except that this paragraph shall not apply to a student who is enrolled in an institution of higher education that offers a baccalaureate degree in education. Except as provided in subparagraph (B), the period during which a student may receive Federal Pell Grants shall not exceed 12 semesters, or the equivalent of 12 semesters, as determined by the Secretary by regulation. Such regulations shall provide, with respect to a student who received a Federal Pell Grant for a term but was enrolled at a fraction of full time, that only that same fraction of such semester or equivalent shall count towards such duration limits. Any Federal Pell Grant that a student received during a period described in subclause
(I)or
(II)of clause
(ii)shall not count towards the student’s duration limits under this paragraph. Clause
(i)shall apply with respect to any Federal Pell Grant awarded to a student to enroll in an eligible program at an institution— during a period of a student’s attendance at an institution— at which the student was unable to complete a course of study due to the closing of the institution; or for which the student was falsely certified as eligible for Federal aid under this title; or during a period— for which the student received a loan under this title; and for which the loan described in item
(aa)is discharged under— section 437(c)(1) or section 464(g)(1); or section 432(a)(6). The Secretary shall from time to time set dates by which students shall file the Free Application for Federal Student Aid under this subpart. Each student desiring a Federal Pell Grant for any year shall file application the Free Application for Federal Student Aid containing such information and assurances as the Secretary may determine are necessary to enable the Secretary to carry out the functions and responsibilities of this subpart. Payments under this section shall be made in accordance with regulations promulgated by the Secretary for such purpose, in such manner as will best accomplish the purpose of this section. Any disbursement allowed to be made by crediting the student's account shall be limited to tuition and fees, and food and housing if that food and housing is institutionally owned or operated. The student may elect to have the institution provide other such goods and services by crediting the student's account. If, for any fiscal year, the funds appropriated for payments under this subpart are insufficient to satisfy fully all entitlements, as calculated under subsection
(b)(but at the maximum grant level specified in such appropriation), the Secretary shall promptly transmit a notice of such insufficiency to each House of the Congress, and identify in such notice the additional amount that would be required to be appropriated to satisfy fully all entitlements (as so calculated at such maximum grant level). If, at the end of a fiscal year, the funds available for making payments under this subpart exceed the amount necessary to make the payments required under this subpart to eligible students by 15 percent or less, then all of the excess funds shall remain available for making payments under this subpart during the next succeeding fiscal year. If, at the end of a fiscal year, the funds available for making payments under this subpart exceed the amount necessary to make the payments required under this subpart to eligible students by more than 15 percent, then all of such funds shall remain available for making such payments but payments may be made under this paragraph only with respect to entitlements for that fiscal year. Any institution of higher education which enters into an agreement with the Secretary to disburse to students attending that institution the amounts those students are eligible to receive under this subpart shall not be deemed, by virtue of such agreement, a contractor maintaining a system of records to accomplish a function of the Secretary. Recipients of Pell Grants shall not be considered to be individual grantees for purposes of subtitle D of title V of Public Law 100–690 . No institution of higher education shall be an eligible institution for purposes of this subpart if such institution of higher education is ineligible to participate in a loan program under part B or D as a result of a final default rate determination made by the Secretary under part B or D after the final publication of cohort default rates for fiscal year 1996 or a succeeding fiscal year. No institution may be subject to the terms of this subsection unless the institution has had the opportunity to appeal the institution's default rate determination under regulations issued by the Secretary for the loan program authorized under part B or D, as applicable. This subsection shall not apply to an institution that was not participating in the loan program authorized under part B or D on October 7, 1998, unless the institution subsequently participates in the loan programs. . This section, and the amendments made by this section, shall take effect on July 1, 2021.
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- Pub. L. 100-690
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Sec. 7
Federal Pell Grants: amount and determinations; applications
Pub. L.Pub. L. 100-690
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