dwb2023/document-loader-jul2025 huggingface dataset:
Chapter	8
Pell	Grant	Lifetime	Eligibility	Used	(LEU)
Duration	of	Eligibility
Per	the	
Consolidated	Appropriations	Act,	2012,	a	student9s	maximum	duration	of	Pell	eligibility	is	six	Scheduled	Awards,	as
measured	by	the	percentage	of	<Lifetime	Eligibility	Used=	(LEU)	field	in	COD	(one	Scheduled	Award	equals	100%	LEU).	A
student	is	ineligible	to	receive	further	Pell	Grant	funds	if	they	have	reached	or	exceeded	the	600%	limit.	This	limitation
includes	all	grants	disbursed	since	the	beginning	of	the	program	(1973-74).
The	Department	provides	weekly	Pell	LEU	reports	through	the	SAIG	Mailbox	under	Message	Class	PGLEXXOP	(where	XX	=
the	year)	for	your	Pell-eligible	students	(and	students	who	listed	your	school	code	on	their	FAFSA	form)	who	have	a	Pell
LEU	greater	than	or	equal	to	450%.	The	COD	website	will	show	the	current	Pell	LEU	level	for	all	aid	recipients	(updated	as
transactions	are	processed).	COD	also	provides	the	LEU	for	the	Pell	Multiple	Reporting	Record	(MRR),	Pell	Reconciliation
Report,	and	Pell	Year-to-Date	file.
Students	will	fall	into	one	of	the	following	categories:
Student	not	on	report	(Code	<N=	on	the	student9s	ISIR	under	Lifetime	Limit	Flag):	Students	in	this	category	have
LEU	of	less	than	400%.	These	students9	Pell	awards	will	be	awarded	as	normal,	since	even	if	they	receive	a	full
Scheduled	Award,	they	will	not	go	over	the	600%	LEU	maximum.
LEU	greater	than	400%	but	less	than	or	equal	to	500%	(Code	<H=	on	the	student9s	ISIR	under	Lifetime	Limit
Flag):	Students	in	this	category	will	likely	have	Scheduled	Award	eligibility	for	2025-26.	However,	a	student9s	2025-
26	Pell	eligibility	may	be	reduced	if,	for	example,	another	Pell	disbursement	is	reported	after	a	report	has	been
created,	putting	the	student9s	2025-26	baseline	LEU	over	500%.
LEU	greater	than	500%	but	less	than	600%	(Code	<C=	on	the	student9s	ISIR	under	Lifetime	Limit	Flag):	These
students	will	not	have	full	Pell	eligibility	for	2025-26	since	their	baseline	LEU	has	less	than	100%	remaining.
LEU	600%	or	higher	(Code	<E=	on	the	student9s	ISIR	under	Lifetime	Limit	Flag):	These	students	will	have	no	Pell
eligibility	remaining,	as	they	have	already	met	or	exceeded	the	maximum	LEU	amount.
To	aid	in	identifying	students	who	are	approaching	their	LEU	limits,	COD	returns	warning	code	177	or	178	when	a
student9s	Pell	LEU	is	near	or	exceeds	600%.	COD	has	a	hard	reject	(Edit	201)	for	Pell	Grant	actual	disbursements	with	a
Pell	Grant	LEU	greater	than	600%.	Also,	you	will	be	able	to	see	this	data	in	the	Common	Record	Response,	and	LEU	is	also
visible	in	the	NSLDS	system.	The	FAFSA	Processing	System	(FPS)	reports	the	Pell	Grant	LEU	limit	flags	and	percentages	on
FAFSA	Submission	Summaries	and	ISIRs.	COD	calculates	a	student9s	LEU	to	three	decimal	places,	and	you	may	round
awards	as	described	in	Chapter	4	of	this	volume.	However,	you	may	not	round	up	if	that	would	cause	the	student	to
exceed	either	their	Scheduled	Award	or	600%	LEU.
Pell	Grant	LEU
34	CFR	690.6
HEA	Section	401(d)
Dear	Colleague	Letter	GEN-12-01
Dear	Colleague	Letter	GEN-13-14
Electronic	Announcement	April	18,	2014
To	calculate	an	award	for	a	student	whose	LEU	level	will	reduce	the	student9s	eligibility	(i.e.,	an	LEU	greater	than	450%
but	less	than	600%),	you	must	first	check	the	most	current	LEU	level	in	COD.	Subtract	the	LEU	percentage	from	600%,
then	multiply	the	student9s	Scheduled	Award	by	the	resulting	percentage.	For	example,	if	a	student	has	533%	LEU	in	COD,
your	school	will	subtract	533%	from	600%,	leaving	the	student	with	67%	of	a	Scheduled	Award	remaining.	If	the	student9s
Scheduled	Award	is	$7,455,	your	school	multiplies	$7,455	by	0.67,	which	equals	$4,994.85.	This	amount	is	then	disbursed
per	the	normal	Pell	formula	and	payment	period	rules.	If	your	school	only	disburses	funds	in	whole	dollars,	you	will
truncate	the	amount	to	$4,994	(rather	than	rounding	up	to	$4,995,	as	this	would	put	the	student	over	600%	LEU).
For	students	whose	eligibility	is	less	than	a	full	Scheduled	Award,	you	award	the	student	a	Pell	Grant	as	you	would	for	a
transfer	student	who	received	Pell	at	another	school	during	the	same	award	year.	That	is,	you	determine	the	student9s
remaining	Pell	Grant	eligibility	as	a	percentage	of	LEU	and	then	award	each	payment	until	that	eligibility	is	used	(see	the
discussion	in	Chapter	6	of	this	volume).
Pell	Grant	and	Iraq	and	Afghanistan	Service	Grant	LEU
Prior	to	the	2024-25	award	year,	the	Pell	Grant	and	Iraq	and	Afghanistan	Service	Grant	(IASG)	were	separate	programs
and	LEUs	were	tracked	independently	for	each	program.	In	the	Spring	of	2024,	any	student	who	received	IASG	funds	had
their	IASG	LEU	percentage	converted	to	and	combined	with	a	Pell	Grant	LEU	percentage.	A	student	whose	newly
combined	Pell	Grant	LEU	percentage	reaches	or	exceeds	the	600%	limit	will	not	be	eligible	for	Pell	Grant	funds.	However,
a	student	whose	newly	combined	Pell	LEU	exceeds	600%	is	not	considered	to	have	received	a	Pell	Grant	overaward.
Prior	Pell	LEU Prior	IASG	LEU Combined	Pell	LEU Remainin g	Eligibility?
100% 200% 300% Yes	3	300%
300% 300% 600% No
400% 300% 700% No
See	"Maximum	Pell	Grant	Eligibility	for	Dependents	of	Certain	Deceased	Servicemembers	and	Public	Safety	Officers=	in
Chapter	1	for	further	discussion	of	Pell	Grant	eligibility	under	the	Special	Rule.
Timely	Pell	Grant	Reporting	Requirements
Because	of	Pell	Grant	Lifetime	Eligibility	Used	(LEU)	monitoring,	it	is	important	to	submit	Pell	Grant	disbursement
information	in	a	timely	manner.	You	must	submit	Pell	Grant	disbursement	information	to	COD	no	later	than	15	calendar
days	after	making	a	disbursement	or	adjustment.	To	ensure	you	and	other	schools	have	the	most	accurate	information
available	about	students9	LEUs,	you	should	submit	information	to	COD	as	early	as	possible	in	the	required	15-day	time
frame.	Doing	so	may	help	prevent	an	overaward.	Failure	to	submit	the	data	within	the	15	days	could	result	in	the
Department	disallowing	the	disbursement.
Pell	Grants	under	the	Special	Rule
HEA	Section	401(c)
NSLDS	Reporting	Requirements	for	Pell
Changes	in	LEU
A	student9s	LEU	changes	whenever	they	receive	a	Pell	Grant	disbursement	and	may	change	any	time	a	student9s
Scheduled	Award	is	adjusted	(up	or	down).	It	may	also	change	through	an	LEU	adjustment	based	on	an	LEU	Dispute,
Closed	School	Restoration,	Restoration	for	Eligible	Loan	Discharge,	or	other	adjustment	type	deemed	necessary	by	the
Department.
A	student9s	Pell	Grant	LEU	can	limit	the	student9s	Pell	Grant	eligibility	for	an	award	year.	For	example,	since	the	maximum
LEU	is	600%,	if	a	student9s	Pell	Grant	award	originally	was	calculated	based	on	an	LEU	of	550%,	then	that	student9s	award
would	be	limited	to	50%	of	the	Scheduled	Award.	A	change	to	a	disbursement	in	the	current	or	previous	award	year	may
alter	a	student9s	LEU.	For	details	on	LEU	limitations,	see	the	Pell	Grant	Lifetime	Eligibility	Used	guidance	earlier	in	this
chapter.
When	a	school	becomes	aware	that	a	student9s	LEU	has	changed,	it	should	determine	whether	the	adjustment	affects	the
student9s	eligibility	for	a	Pell	Grant	in	the	current	or	most	recently	completed	award	year.
If	the	student	becomes	eligible	for	additional	Pell	Grant	funds	due	to	a	change	to	the	student9s	LEU,	the	school	must	make
a	correction	to	the	student9s	award	and	make	any	disbursements	of	Pell	Grant	funds	for	which	the	student	is	now	eligible
and	that	the	school	is	permitted	to	make	under	the	late	and	retroactive	disbursement	requirements	(for	more	detail	on
disbursement	requirements	and	timing,	see	
Volume	4,	Chapter	2).
Minimum	Pell	Grant	and	LEU
Under	HEA	section	401(a)(2)(F),	the	minimum	award	is	set	at	10%	of	the	maximum	award	appropriated	each	year,
rounded	to	the	nearest	$5.	There	is,	however,	no	de	minimis	award	amount	for	purposes	of	determining	a	student9s	award
because	of	the	600%	LEU	limitation.	Therefore,	an	otherwise	eligible	student	with	even	a	very	small	remaining	LEU	is
eligible	to	receive	the	calculated	amount	of	the	Pell	Grant,	up	to	the	LEU.
Pell	LEU	Restoration
In	2017,	following	several	cases	of	closed	schools,	the	Department	began	restoring	Federal	Pell	Grant	eligibility	for	Pell
Grant	recipients	who	were	unable	to	complete	their	course	of	study	due	to	the	closing	of	a	school.	This	process	is	known
as	<Pell	LEU	Restoration	for	Closed	Schools=.
Dear	Colleague	Letter	GEN-14-07
Dear	Colleague	Letter	GEN-14-17
Volume	7,	Chapter	8,	Example	1:	Minimum	Pell	Grant	and	LEU
A	full-time	student	with	a	Scheduled	Award	equal	to	$7,500	with	a	LEU	of	599.500%	would	be	eligible	for	the
remaining	0.500%	which	is	$37.50	(if	your	school	only	disburses	in	whole	dollars,	this	amount	must	be	truncated
to	$37,	because	$38	would	exceed	the	student9s	LEU).
Pell	LEU	Restoration	for	Closed	Schools
Electronic	Announcements	posted:
In	2021,	the	FAFSA	Simplification	Act	codified	Pell	LEU	Restoration	for	Closed	Schools	into	law	and	expanded	the
restoration	of	Pell	Grant	eligibility	to	include	students	who	received	a	closed	school,	false	certification,	identity	theft,	or
borrower	defense	loan	discharge.	This	expanded	authority	is	known	as	<Pell	LEU	Restoration	for	Eligible	Loan	Discharge=.
The	Department	implemented	changes	in	the	COD	System	to	accommodate	this	new	authority	on	July	30,	2023.
A	closed	school	may	be	considered	for	the	Pell	LEU	Restoration	for	Closed	Schools	process	if	all	the	following	are	true:
The	school's	main	location	is	officially	closed	with	the	Department;
The	school	closed	after	1994	(i.e.,	1995	to	present);
All	final	disbursements	have	been	submitted	to	the	COD	system	and	accepted	by	the	Department;
All	final	enrollment	data	has	been	submitted	to	NSLDS	so	that	the	Department	may	determine	if	students	are	eligible
for	restoration;	and
The	school	has	completed	the	close-out	process	with	the	Department.
A	student	may	be	eligible	for	restoration	under	the	Pell	LEU	Restoration	for	Closed	Schools	process	if	all	the	following	are
true:
The	student	received	a	Pell	Grant	disbursement	at	an	eligible	closed	school	(see	criteria	for	an	eligible	closed	school
above);
The	student	did	not	complete	their	program	at	the	closed	school;	and
The	student	had	a	valid	enrollment	status	at	the	closed	school	within	two	years	of	the	school9s	closure.
A	student	may	be	eligible	for	restoration	under	the	Pell	LEU	Restoration	for	Eligible	Loan	Discharge	process	if	the	following
are	true:
The	student	received	an	eligible	loan	discharge	on	or	after	July	1,	2017;	and
The	student	received	Pell	Grant	disbursement	for	the	same	OPEID	and	award	year	as	the	discharged	loan.
School	Impact	Due	to	Pell	LEU	Restorations
Schools	do	not	have	to	take	any	action	related	to	either	the	Pell	LEU	Restoration	for	Closed	Schools	or	the	Pell	LEU
Restoration	for	Loan	Discharge	processing.	The	Department	has	modified	the	COD	system	to	restore	Pell	Grant	eligibility
for	affected	students.
However,	if	a	student9s	eligibility	for	Pell	in	the	current	award	year	is	affected	by	an	LEU	adjustment,	the	school	will	be
notified.	Notifications	of	Pell	eligibility	restoration	adjustments	for	students	associated	with	their	school	are	sent	through
multiple	sources:
December	21,	2016
April	3,	2017
October	4,	2017
Pell	LEU	Restoration	for	Eligible	Loan	Discharge
Electronic	Announcement	posted	July	20,	2023
COD	Warning	Edits	(#221	for	Closed	School	adjustments;	#229	for	Loan	Discharge	adjustments);
Targeted	emails	with	instructions	to	download	a	list	of	affected	students	from	the	COD	Web;
NSLDS	post	screening;
Updated	LEU	within	response	file;	and
Details	of	the	LEU	adjustment(s)	displayed	on	the	students9	Pell	LEU	History	screen	in	COD	Web.
Student	Impact	and	Eligibility	for	Pell	LEU	Restorations
Neither	the	Pell	LEU	Restoration	for	Closed	Schools	nor	the	Pell	LEU	Restoration	for	Eligible	Loan	Discharge	process
requires	student	intervention.	Students	who	are	potentially	eligible	for	additional	Pell	because	some	or	all	their	Pell
eligibility	has	been	restored	are	sent	a	targeted	email.
Pell	Grant	LEU	Disputes
A	school	or	student	may	dispute	the	accuracy	of	a	student9s	Pell	Grant	data	which	resulted	in	the	student9s	LEU
percentage	in	COD.	It	is	the	student9s	current	school9s	responsibility	to	coordinate	the	resolution	of	the	dispute.	You	may
create,	view,	and	edit	Pell	LEU	disputes	(including	uploading	documentation)	using	the	COD	Web	Portal.
Pell	Grant	LEU	disputes
Electronic	Announcements	posted:
June	27,	2013
April	18,	2014
Appendix	A
Pell	Formula	Summaries
Formula	1	Summary
Standard-term,	credit-hour	programs,	including	subscription-based	programs,	with	30	weeks	of	instructional	time	(or
waiver	applies).	For	a	program	with	a	traditional	academic	calendar,	the	program:
must	have	an	academic	calendar	that	consists,	in	the	fall	through	spring,	of	two	semesters	or	trimesters,	or	three
quarters	(note	that	summer	may	not	be	a	standard	term);
must	have	at	least	30	weeks	of	instructional	time	in	fall	through	spring	terms;
must	not	have	overlapping	terms;	and
must	measure	progress	in	credit	hours	and	must	define	full-time	enrollment	for	each	term	in	the	award	year	as	at
least	12	credit	hours.
Other	programs	offered	in	standard	terms	may	use	Formula	1	if	they	start	the	terms	for	different	cohorts	of	students	on	a
periodic	basis	(for	example,	monthly).	These	programs:
must	have	an	academic	calendar	that	consists	exclusively	of	semesters,	trimesters,	or	quarters;
must	have	at	least	30	weeks	of	instructional	time	in	any	two	semesters	or	trimesters	or	any	three	quarters;
must	start	the	terms	for	different	cohorts	of	students	on	a	periodic	basis	(for	example,	monthly);
must	not	allow	students	to	be	enrolled	in	overlapping	terms	and	the	students	must	stay	with	the	cohort	in	which	they
start	unless	they	withdraw	from	a	term	(or	skip	a	term)	and	re-enroll	in	a	subsequent	term;	and
must	define	full-time	enrollment	for	each	term	in	the	award	year	as	at	least	12	credit	hours	and	must	measure
progress	in	credit	hours.
Step	1:	Determine	Enrollment	Intensity
Enrolled	credits	divided	by	full-time	minimum	credits.
Step	2:	Calculate	Pell	COA
Full-time,	full	academic	year	costs.
Step	3:	Determine	Annual	Award
If	the	student9s	enrollment	intensity	is	full	time,	the	annual	award	is	the	Scheduled	Award.	If	the	student9s
enrollment	intensity	is	less	than	100%,	the	annual	award	is	the	Scheduled	Award	multiplied	by	the	enrollment
intensity	percentage.
Step	4:	Determine	Payment	Periods
Payment	period	is	the	academic	term.
Step	5:	Calculate	Payment	for	a	Payment	Period
Annual	award	÷	2	for	programs	with	semesters	or	trimesters	or	3	for	programs	with	quarters
OR
For	alternate	calculation:
Annual	award	÷	Number	of	terms	in	the	award	year
Formula	2	Summary
Standard-term,	credit-hour	programs,	including	subscription-based	programs,	with	fewer	than	30	weeks	of	instructional
time,	and	waiver	does	not	apply.
Enrollment	for	at	least	12	credit	hours	each	term	required	for	full-time	status
Program	terms	don9t	overlap
Academic	calendar	includes	two	semesters/trimesters	(fall	and	spring)	or	three	quarters	(fall,	winter,	and	spring)
Fall	through	spring	terms	are	less	than	30	weeks	of	instructional	time
Formula	3	Summary
Any	term-based,	credit-hour	program,	including	subscription-based	programs;	may	include	programs	that	qualify	for
Formulas	1	and	2.
Step	1:	Determine	Enrollment	Intensity
Enrolled	credits	divided	by	full-time	minimum	credits.
Step	2:	Calculate	Pell	COA
Full-time,	full	academic	year	costs.
Cost	for	fall	through	spring	terms	prorated.	If	fall	through	spring	terms	provide	the	same	number	of	credit	hours
as	are	in	the	academic	year	definition,	prorated	COA	is	the	same	as	non-prorated	COA.
Step	3:	Determine	Annual	Award
If	the	student9s	enrollment	intensity	is	full	time,	the	annual	award	is	the	Scheduled	Award.	If	the	student9s
enrollment	intensity	is	less	than	100%,	the	annual	award	is	the	Scheduled	Award	multiplied	by	the	enrollment
intensity	percentage.
Step	4:	Determine	Payment	Periods
Payment	period	is	the	academic	term.
Step	5:	Calculate	Payment	for	a	Payment	Period
[(Annual	award	×	Weeks	of	instructional	time	in	fall	through	spring	terms)	÷	Weeks	of	instructional	time	in
program's	academic	year	definition]	÷	2	(if	semesters	or	trimesters)	OR	3	(if	quarters)
OR
For	alternate	calculation:
Annual	award	÷	Number	of	terms	in	the	award	year
Step	1:	Determine	Enrollment	Intensity
Enrolled	credits	divided	by	full-time	minimum	credits.
Step	2:	Calculate	Pell	COA
Formula	4	Summary
Clock-hour	programs	and	credit-hour	programs	without	terms,	residential	portion	of	non-term	correspondence	programs.
Full-time,	full	academic	year	costs.
Cost	for	program	or	period	not	equal	to	academic	year	prorated.	Two	fractions	are	compared:
Hours	in	program9s	definition	of	academic	year	÷	Hours	to	which	the	costs	apply
Weeks	of	instructional	time	in	program9s	definition	of	academic	year	÷	Weeks	of	instructional	time	in	the
enrollment	period	to	which	the	costs	apply
The	entire	cost	is	multiplied	by	the	lesser	of	the	two	fractions	to	determine	Pell	COA.
Step	3:	Determine	Annual	Award
If	the	student9s	enrollment	intensity	is	full	time,	the	annual	award	is	the	Scheduled	Award.	If	the	student9s
enrollment	intensity	is	less	than	100%,	the	annual	award	is	the	Scheduled	Award	multiplied	by	the	enrollment
intensity	percentage.
Step	4:	Determine	Payment	Periods
Payment	period	is	the	academic	term.
Step	5:	Calculate	Payment	for	a	Payment	Period
[(Annual	award	x	Weeks	of	instructional	time	in	the	term)	÷	Weeks	of	instructional	time	in	the	program9s
academic	year	definition]
Note:	A	single	disbursement	can9t	exceed	50%	of	the	annual	award.
Step	1:	Determine	Enrollment	Intensity
At	least	half-time	or	less-than-half-time.
Step	2:	Calculate	Pell	COA
Full-time,	full	academic	year	costs.
Cost	for	program	or	period	not	equal	to	academic	year	prorated.	Two	fractions	compared:
Hours	in	program9s	definition	of	academic	year	÷	Hours	to	which	the	costs	apply
Weeks	of	instructional	time	in	program9s	definition	of	academic	year	÷	Weeks	of	instructional	time	in	the
enrollment	period	to	which	the	costs	apply
The	entire	cost	is	multiplied	by	the	lesser	of	the	two	fractions	to	determine	Pell	COA.
Step	3:	Determine	Annual	Award
Always	equal	to	Scheduled	Award.	Does	not	mean	students	are	always	considered	full-time.
Step	4:	Determine	Payment	Periods
Length	of	payment	period	measured	in	credit	or	clock	hours	and	weeks	of	instructional	time.	Minimum	of	two
equal	payment	periods	required	for	programs	shorter	than	an	academic	year,	or	two	equal	payment	periods	in
each	full	academic	year	(or	final	portion	longer	than	half	an	academic	year)	for	programs	longer	than	or	equal	to
an	academic	year.
Formula	5A	Summary
Correspondence	programs	non-term	correspondence	component.	For	residential	portion,	use	Formula	4	to	calculate
payment	periods	and	amounts.	The	schedule	for	the	submission	of	lessons	must	reflect	a	workload	of	at	least	12	hours	of
preparation	per	week	of	instructional	time.
Step	5:	Calculate	Payment	for	a	Payment	Period
Annual	award	multiplied	by	the	lesser	of:
The	number	of	credit	or	clock	hours	in	the	payment	period	÷	The	number	of	credit	or	clock	hours	in	the	program9s
academic	year
OR
The	number	of	weeks	of	instructional	time	in	the	payment	period	÷	The	number	of	weeks	of	instructional	time	in
the	program9s	academic	year
Note:	A	single	disbursement	can9t	exceed	50%	of	the	annual	award.
Step	1:	Determine	Enrollment	Intensity
Enrollment	intensity	is	never	more	than	50%.
Step	2:	Calculate	Pell	COA
Full-time,	full	academic	year	costs	(for	applicable	components).
Cost	for	program	or	enrollment	period	not	equal	to	academic	year	prorated	according	to	the	following	formula	for
tuition	and	fees:
Costs	×	(Credit	hours	in	program9s	definition	of	academic	year	÷	Credit	hours	to	which	costs	apply)
Step	3:	Determine	Annual	Award
Annual	award	is	the	Scheduled	Award	multiplied	by	enrollment	intensity,	capped	at	50%.
Step	4:	Determine	Payment	Periods
Length	of	payment	period	measured	in	credit	hours.
The	first	payment	period	is	the	period	of	time	in	which	the	student	completes	the	lesser	of	the	first	half	of	the
academic	year	or	the	first	half	of	the	program.	(First	payment	can	be	made	only	after	the	student	has	completed
25%	of	the	lessons	or	otherwise	completed	25%	of	the	work	scheduled,	whichever	comes	last.)
The	second	payment	period	is	the	period	of	time	in	which	the	student	completes	the	lesser	of	the	second	half	of
the	academic	year	or	the	second	half	of	the	program.	(Second	payment	may	be	made	only	after	the	student	has
submitted	75%	of	the	lessons	or	otherwise	completed	75%	of	the	work	scheduled,	whichever	comes	last.)
Step	5:	Calculate	Payment	for	a	Payment	Period
Annual	award	is	multiplied	by	the	lesser	of:
Number	of	credit	hours	in	the	payment	period	÷	Number	of	credit	hours	in	the	program9s	academic	year
OR
Weeks	of	instructional	time	in	the	payment	period	÷	Weeks	of	instructional	time	in	the	program9s	academic	year
Note:	A	single	disbursement	can9t	exceed	50%	of	the	annual	award.
Formula	5B	Summary
Programs	of	study	by	correspondence,	term	correspondence	component.	During	each	term,	the	written	schedule	for	the
submission	of	lessons	must	reflect	a	workload	of	at	least	30	hours	of	preparation	per	semester	hour	or	at	least	20	hours	of
preparation	per	quarter	hour.
Step	1:	Determine	Enrollment	Intensity
Enrollment	intensity	is	never	more	than	50%.
Step	2:	Calculate	Pell	COA
Full-time,	full	academic	year	costs	(for	applicable	components).
Cost	for	program	or	enrollment	period	not	equal	to	academic	year	prorated	according	to	the	following	formula	for
tuition	and	fees:
Cost	×	(Credit	hours	in	program9s	definition	of	academic	year	÷	Credit	hours	to	which	costs	apply)
Step	3:	Determine	Annual	Award
Annual	award	is	the	Scheduled	Award	multiplied	by	enrollment	intensity,	capped	at	50%.
Step	4:	Determine	Payment	Periods
Length	of	payment	period	is	the	academic	term.
Step	5:	Calculate	Payment	for	a	Payment	Period
(Annual	award	x	Weeks	of	instructional	time	in	the	term)	÷	Weeks	of	instructional	time	in	the	program9s	academic
year	definition
When	there	is	a	residential	portion	in	a	term-based	correspondence	program,	Formula	3	is	used	to	calculate	the
student9s	payment	for	a	payment	period	for	the	residential	portion.
Note:	A	single	disbursement	cannot	exceed	50%	of	the	annual	award.
Volume	8
The	Direct	Loan	Program
Introduction
Under	the	William	D.	Ford	Federal	Direct	Loan	Program	(Direct	Loan	Program),	the	U.S.	Department	of	Education	(the
Department)	makes	loans	to	help	students	and	parents	pay	the	cost	of	attendance	(COA)	at	a	postsecondary	school.	This
volume	of	the	
Federal	Student	Aid	Handbook	provides	information	to	assist	schools	in	determining	student	and	parent
eligibility	for	Direct	Loans,	counseling	student	borrowers,	and	awarding	Direct	Loans.
Changes	for	2025-2026
We	have	made	the	following	changes	in	
Volume	8	for	2025-2026:
In	Chapter	3,	we	have	revised	the	discussion	of	loan	periods	to	provide	a	limited	exception	to	the	longstanding
requirement	that	the	loan	period	for	a	Direct	Loan	may	not	include	any	terms	in	which	the	borrower	is	ineligible	to
receive	Direct	Loan	funds.
Also	in	Chapter	3,	we	have	added	a	slightly	revised	and	expanded	version	of	guidance	on	the	treatment	of	Direct
Loan	disbursements	made	after	the	date	of	a	borrower9s	death	that	was	previously	in	Volume	4,	Chapter	2	of	the	FSA
Handbook	under	the	heading	<Checking	Eligibility	at	the	Time	of	Disbursement.=	Because	this	guidance	is	specific	to
Direct	Loans,	we	believe	Volume	8	is	a	more	appropriate	location.
In	Chapter	5,	we	have	revised	Example	6	to	reflect	the	limited	exception	to	the	requirement	that	a	loan	period	may
not	include	terms	in	which	the	borrower	is	ineligible	(see	Chapter	3	changes	above).
In	Chapter	7,	we	have	revised	the	discussion	of	transfer	students	and	abbreviated	loan	periods	to	clarify	that	in	some
circumstances	a	transfer	student	may	be	eligible	to	receive	more	Direct	Loan	funds	for	the	program	at	the	new
school	than	a	non-transfer	student	would	be	eligible	to	receive	for	that	same	program.
Except	as	noted	above,	there	are	no	other	substantive	changes	to	Volume	8	for	2025-2026.