·      This means the Education Department will be able to require universities, which accept direct loans, to also agree to enroll students who are Pell Grant eligible at an equal rate. 

·      The department would also require students who receive the Pell Grant to graduate college within the same time frames as those students not receiving the Pell Grand.

·      The purpose for these new directives is to maintain social equity and justice in respect to student loan repayments. This will also mean students receiving the Pell Grant are succeeding and graduating within a four year time limit (Murakami, 2020). 

·      This article is especially important for institutions of higher education and the impact the new laws may have on student enrollment and graduation rates. These laws will increase the enrollment of students who are Pell eligible. They will also hold the university accountable for ensuring that the students receiving the Pell Grant graduate on time and are succeeding in college. The new laws, if enacted, will also impact financial aid advisers who must track student academic progress. 

·      The issue the article addresses is on the convergence of funding and how support for higher education comes into the system. There is more support for the federal government and less for the funding of public colleges via the state. In fact, according the article, the federal government has grown the student aid program. The Pell Grant rose a total of 71% and there is now over $11.5 billion allocated to the program. 

·      Many universities rely on state funding in order to support students. A huge cut in the budget can cause serious situations for those institutions. 

·      University officials must bear in mind that funding for federal aid is cyclical. When there is an economic downturn, the federal government increases federal funding in order to support students (Schwartz, 2019). 

This article is important for financial aid advisers. The Pell Grant funding has increased significantly, which allows institutions to admit higher levels of students who are Pell eligible. It is also important to keep in mind that funding changes year to year. Funding is never final and when aid changes, the university’s staff must be current on the new laws and amounts 

·      The university currently has a policy regarding maintaining financial aid and Pell Grant eligibility. At the start of each semester, Mr. Moore and the other UT Financial Aid Officers go through a training which covers the universities policy and the important key points students need to understand regarding the policy. 

·      Mr. Moore also talked about the various personalized financial aid sessions they have regularly with students and parents. In these sessions the financial aid officers are required to address student compliance and maintaining financial aid eligibility. 

·      Students must also attend a financial aid session during freshman orientation. “We meet with groups of freshmen during orientation. During these presentations, we cover financial aid and how to comply with state laws and the universities policies” (Moore, Personal Communication, September 23^rd, 2020).
·      Mr. Moore addressed the universities policy for holding students in compliance. If a student’s grades begin to drop, that student will be placed on satisfactory academic process. At the end of the semester the student will receive a warning. If they are still unable to improve their grades they will no longer be eligible for financial aid for the following year (Moore, Personal Communication, September 23^rd, 2020). 

         Every year the financial aid staff must learn about the new policies regulating financial aid. The amount of money each school receives can change over time, and this directly impacts the Pell Grant. He specifically mentioned the current changes occurring related to federal funding within the government. Mr. Moore stated "This is an interesting time for financial aid advisers and we must stay current with the changes which may occur" (Moore, Personal Communication, September 23rd, 2020). One of the proposed changes involves combining the Pell Grant with other types of federal funding. This would impact the amount of Pell Grant awarded to each institution. Financial aid advisers must continue to learn and educate themselves in regards to these news policies (Moore, Personal Communication, September 23rd, 2020). 

Mr. Moore also talked about the legal issues surrounding financial aid and the universities responsibility to report financial aid spending. Each university must be accountable for how they disperse their financial aid to students. In the conversation, he talked about the financial aid verification process and how that process is directly related to reporting student funding. "Not every student needs to complete the verification process, but if a student does, it is because the university needs more documentation to prove they qualify for the funds" (Moore, Personal Communication, September 23rd, 2020). 

The conversation was extremely informative. Financial aid advisers clearly need information which addresses the Federal Pell Grant and student compliance.

Interview Information:
Mr. Jacob Moore
Financial Aid Officer at The University of Texas in Austin
School link with contact information: 
https://directory.utexas.edu/index.php?q=jacob+moore&scope=faculty%2Fstaff&submit=Search

·      Within these laws are the specifics and details regarding the Pell Grant. The Duration of Student Eligibility, 34 § CFR 690.6 explains the length of time a student may receive the Pell Grant.  The law clearly states that students are allowed to receive the Pell Grant while they complete their undergraduate baccalaureate degree. The financial aid adviser is responsible for determining "when the student has completed the academic curriculum requirements for that first undergraduate baccalaureate" (34 § CFR 690.6) degree.

·       The law also states that Pell Grants are allowed for students who are pursuing a certification in Education, even if they have an undergraduate degree  (34 § CFR 690.6). 

·      Financial aid advisers need to be aware of these regulations and monitor student progress. If a student earns an undergraduate degree, they can no longer receive the Federal Pell Grant. However, if that student is continuing their education to become a teacher, they are eligible to continue receiving the Pell Grant. 

·      If an institution of higher education has additional funds from the Texas Grant, they must transfer those funds to the Texas Higher Education Coordinating Board (THEBC). 

·      The THEBC can then use those funds to help match federal grant programs for students who have need. This includes possibly increasing the Federal Pell Grant.

·      The amount of aid for a student may increase if there are leftover funds from the THEBC (Tex. Educ. Code  56.036). 

·      In 1995 he challenged the law stating that prisoners are not allowed to receive the Federal Pell Grant. Prior to this law, the plaintiff was receiving the Federal Pell Grant and participating in the prison’s college class program. This law prohibited the plaintiff from attending the college classes.  

·      The court ruled against the plaintiff, stating that the original law, prohibiting prisoners from receiving the Pell Grant, was amended correctly and directly (Nicholas v. Riley, 1995). 

·      Students who are dependent on the Federal Pell Grant need to hear any and all regulations which may prevent them from receiving the funds from the Federal Pell Grant. If a student commits a crime and is in prison, they will no longer receive the Pell Grant.

·      A students Pell Grant eligibly is determined by their Estimated Family contribution (EFC). If the students EFC falls under a certain amount the student will receive the maximum amount of the Pell Grant.

·      If a student attends an institution of higher education less than full time, the student will receive a portion of the Pell Grant. 

·      The Federal Pell Grant may be applied to study abroad programs if the student is eligible for the Pell Grant as granted by the institution. 

·      The Federal Pell Grant may not exceed the difference between expected family contribution and the cost of tuition (20 USC § 1070a(b)). 

 

·      When a financial aid adviser meets with an incoming freshman, they must go over the policies, rules, and procedures regulating the Federal Pell Grant. Once the meeting has concluded the student must sign an agreement form stating they understand their responsibilities as Pell Grant recipients. 

·      Financial aid advisers must reiterate the importance of student compliance for every year the student receives the Pell Grant. The student must also sign another agreement. 

·      The financial aid adviser must send emails and letters to the student’s parent/guardian which details student compliance. The letters and emails must be sent out for every year the student receives the Pell Grant. 

·      When new laws and regulations occur, which impact the Federal Pell Grant, financial aid advisers must meet with groups of students and relate the new information. Each student must be aware of the changes which impact their financial aid and how they can comply with the laws regulating the changes. 

·       Students will be assigned or volunteer to be a financial aid ambassador. These students are required to have a booth during student organization events which highlight and remind students about their responsibilities when receiving the Pell Grant. The students who are financial aid ambassadors can pass out information about student compliance and offer workshops to keep students aware of current changes. 

·      Financial aid advisers will work closely to monitor student academic and behavioral progress. They will have meetings with students who are suffering academically and in jeopardy of losing their Pell Grant. Financial aid advisers will also meet with students who are in trouble or have issues with the police and remind the student about the laws regulating student compliance and the Pell Grant. 

         
         These recommendations will help ensure students comply with the rules regulating the Pell Grant. Financial aid advisers need to be aware of the rules, monitor the student closely, and help them comply with the laws.

References: 

Federal Pell Grants: Amount and determinations; applications, 20 USC § 1070a

The University of Texas as Austin: Texas One Stop. (n.d.). Maintaining eligibility. Retrieved from https://onestop.utexas.edu/managing-costs/scholarships-financial-aid/managing-aid/maintaining-eligibility/