ICRAS 1470 1845
- 0106 v 2

– Affected Public

– Private Institutions 7 / 18 /2013

The regulations require institutions to provide a way for a Federal Pell Grant eligible student to obtain or purchase, b y the seventh day of a payment period, the books and supplies required for the pay

ment period when certain conditions are met. If, 10 d ay s before the beginning of the pay

ment period the institution could disburse Title IV, Higher Education Act of 1965, as amended (HEA) program funds for which the student was eligible, and if disbursed a credit balance would result, the institution is requ ired to provide to the student the lesser of the presumed credit balance or the amount needed b y the student for books and supplies, as determined b y the institution. **Section 668.164**

**– Disbursing funds.**  Section 668.164(i) : Under the final regulations, i f 10 day s prior to the beginning of the pay ment period, the institution could disburse Title IV, HEA program funds for which a student is eligible and if the presumed disbursed amount of Title IV, HEA funds exceeds the cost of tuition and fees, thus produc ing a presumed credit balance, the institution must provide a way for the Federal Pell Grant eligible student to obtain or purchase his books and supplies for the pay ment period within 7 day s of the beginning of the pay ment period. The amount the institut ion must provide is the lesser of either the presumed credit balance or the amount needed by the student for books and supplies, as determined by the institution. We estimate that of the 9,026,805 Federal Pell Grant recipients in the 2012

- 2013 award ye ar, approximately

30% or 2,708,041 would have or did have a Title IV, HEA credit balance. Of that number, we estimate that 25% (2,708,041 X .25 = 677,010) of the Federal Pell Grant recipients will have a presumed credit balance 10 day s before the beginning o f the pay ment period. Therefore, we estimate that institution will need to provide a way for 677,010 Federal Pell Grant recipients to obtain or purchase their books and supplies within 7 day s of the beginning of the pay

ment period. We expect that insti tutions have completed the initial programming changes that would have been required to determine the number of students affected b y these regulations. Therefore, we estimate that each institution will spend 1 hour validating current programming and makin g any changes to identify

these Federal Pell Grant recipients with presumed credit balances, a decrease of 2 hours from the previous information collection filing. Once those recipients are identified, we estimate an additional .08 hours of burden to cont act the student and make them aware of the way

the institution provides for them to obtain or purchase their books and supplies within the first 7 day s of the pay ment period. PRI VATE INSTITUTIO NS: We estimate that 1,743 private non

- profit institutions p articipating in the Federal Pell Grant program will, on average, spend 1 hour to validate and make programming changes needed to identify Federal Pell Grant students with a presumed credit balance. Therefore, the total burden will be 1,743 hours, a decrea se of 2,826 hours from the previous burden collection. Additionally , these 1,743 institutions will be required to notify an estimated 88,288 Federal Pell Grant eligible students with a presumed credit balance at an average of .08 hours (5 minutes) or 7,06 3 hours of additional burden. This is a decrease in burden of 3,557 hours from the previous burden collection.ICRAS 1470 1845
- 0106 v 2

– Affected Public

– Private Institutions 7 / 18 /2013

# of Responses: # of Respondents: Hrs/Response: # of Burden Hours: PRI VATE INSTITUTIO NS : Analy sis and programming

-

1,743 1,743 X 1 hr 1,743 Id entifying and notification

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88,288 * X .08hrs 7,063
TOTAL S Responses 90,031 Respondents 1,743 Burden Hours 8,806