PELL GRANT ADMINISTRATIVE COST ALLOWANCE PAYMENTS

Schools that participate in the Federal Pell Grant Program receive an “Administrative Cost Allowance” (ACA) payment to defray the cost of administering the Pell Grant each year. The regulations provide for each school to receive $5.00 for each student who receives a Pell Grant. Payments are based on the number of unduplicated recipients at each school for each program award year. In the past, ACA payments were made automatically to a school’s Federal Funds Accounts via EFT/ACH. However, earlier in 2017 the process was changed. Now, ACA payments are no longer being deposited automatically. Instead your school’s accounting office will have to draw those funds down through G5 manually.

The second Pell Grant ACA payments for the 2016-2017 Award Year began on August 24, 2017.

The third and final ACA payments for the 2015-2016 Award Year also began August 24, 2017.

ACA payments aren’t just for Pell. ACA payments are intended to defray the costs of administering the Campus-Based Programs too. If your school participates in the SEOG, Work-Study, or Perkins Loan programs, the process is a little different. For the Campus-Based Programs, the ACA is not a separate allowance sent to the school as described earlier. Instead the school simply takes its campus based ACA out of its annual authorizations it receives for FSEOG, FWS programs and/or Perkins Loan fund. The maximum amount permissible is up to five percent of the sum of the loans advanced in Perkins, the total earned compensation in FWS, and the total awards to recipients in FSEOG.