PELL GRANT CLOSED SCHOOL RESTORATION ADJUSTMENTS

This past March, the Common Origination and Disbursement (COD) System implemented changes to restore Pell Grant eligibility for students who received a Pell Grant at a now-closed school. With the COD System changes now in place, COD will begin to identify students who received a Pell Grant for attendance at a now-closed school and who were not reported to NSLDS as having “graduated” from that school. Affected students will have their Pell Lifetime Eligibility Used Amount adjusted to remove the portion of the LEU attributable to the students’ attendance at a closed school. The Pell Grant LEU adjustment will be equivalent to the Pell Grant Eligibility Used (EU) at the closed school for each award year for which the student received Pell Grant funds.

When Pell Grant Closed School Restoration adjustments are made, schools will receive information about the adjustments in several ways:

  • Email Notification – FSA will send an email alerting schools that a Closed School Pell Restoration list is available on the COD Web Site’s File Share Communications page. The list will show all students who had their Pell Grant LEU adjusted and are associated with the school if, generally –
    • The student received any Title IV aid at the school during one or more of the five most recent award years; or
    • The school’s Federal School Code was included on the student’s highest ISIR transaction for the most recent of the last three FAFSA processing years for which the student submitted a FAFSA.
  • COD Web Site’s Pell LEU History Page Information – Schools will be able to view Pell Grant LEU Closed School Restoration adjustments on the COD Web Site’s Pell LEU History Page. Pell Grant LEU adjustments made due to closed school restoration will be noted as “Closed School Restoration” in the Adjustment Type field.
  • Search Functionality – Schools can search for a specific student’s Pell Grant LEU Adjustment under the Escalation Type Search screen on the COD Web Site by entering the student’s SSN and Date of Birth.
  • COD Warning Edit 221 (Pell LEU Restoration Due to Closed School) – We will return COD Warning Edit 221 when a student has received a Pell Grant LEU Closed School Restoration Adjustment.  This COD Warning Edit 221 will be returned at the Student level <SSN> during origination or maintenance for any award type for a student who meets all of the following criteria:
    • Has a Pell LEU Closed School Restoration Adjustment of greater than 0;
    • Has an existing Pell Grant award for an active award year on the COD System or a Pell Grant award is being submitted for the student; and
  • Is not a graduate student (does not have an existing Direct Loan with a Grade Level of 6 or 7 on the COD System or a Direct Loan with a Grade Level of 6 or 7 is not being submitted for the student)
  • NSLDS Postscreening/Institutional Student Information Records (ISIRs) – The COD System will send NSLDS the adjusted LEU for all students who have had a Pell Grant LEU Closed School Restoration. NSLDS postscreening will be triggered if the new Pell Grant LEU meets certain conditions that impact the student’s Pell Grant eligibility (for example, a Pell Grant LEU of more than 500% changes to a Pell Grant LEU of 500% or less). In such instances, an updated ISIR and Student Aid Reports (SAR) will be generated. For more information on postscreening when the Pell Grant LEU changes, refer to the 2017-2018 ISIR Guide.

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