ICRAS 1470 1845
- 0106 v 2

– Affected Public

– For
- Profit 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 I V, 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, if 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 produci ng 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 instituti on 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 of 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 institutions 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 making 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 conta ct 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. PROPRI ETARY INSTITUTIONS: We estimate that 2,199 proprietary institutions parti cipating 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 2,199 hours, a decrease o f 3,990 hours from the previous burden collection. Additionally , these 2,199 institutions will be required to notify an estimated 139,711 Federal Pell Grant eligible students with a presumed credit balance at an average of .08 hours (5 minutes) or 11,177 hours of additional burden. This is a decrease in burden of 3,236 hours from the previous burden collection.ICRAS 1470 1845
- 0106 v 2

– Affected Public

– For
- Profit Institutions 7 / 18 /2013

# of Responses: # of Respondents: Hrs/Response: # of Burden Hours: PROPRI ETARY INSTITUTIONS: Analy sis and programming

-

2,199 2,199 X 1hr 2,199 Id entifying and notification

–

139,711 * X .08hrs 11,177

TOTAL S Responses 141,910 Respondents 2,199 Burden Hours 13,376