[Federal Register Volume 61, Number 75 (Wednesday, April 17, 1996)]
[Notices]
[Pages 16824-16830]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-9375]



      

[[Page 16823]]


_______________________________________________________________________

Part II





Department of Education





_______________________________________________________________________



Federal Pell Grant Program; Notice

  Federal Register / Vol. 61, No. 75 / Wednesday, April 17, 1996 / 
Notices  
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[[Page 16824]]

DEPARTMENT OF EDUCATION


Federal Pell Grant Program

AGENCY: Department of Education.

ACTION: Notice; deadline dates for receipt of applications, reports, 
and other documents for the 1995-96 award year.

-----------------------------------------------------------------------

SUMMARY: The Secretary announces the deadline dates for receiving 
documents from persons applying for financial assistance under, and 
from institutions participating in, the Federal Pell Grant Program in 
the 1995-96 award year.

FOR FURTHER INFORMATION CONTACT: Jacquelyn C. Butler, Program 
Specialist, Pell and State Grant Section, Grants Branch, Policy 
Development Division, Policy, Training, and Analysis Service, Office of 
Postsecondary Education, U.S. Department of Education, 600 Independence 
Avenue SW. (ROB-3, Room 3045), Washington, DC 20202-5447. Telephone: 
(202) 708-4607. Individuals who use a telecommunications device for the 
deaf (TDD) may call the Federal Information Relay Service (FIRS) at 1-
800-877-8339 between 8 a.m. and 8 p.m., Eastern time, Monday through 
Friday.

SUPPLEMENTARY INFORMATION: The Federal Pell Grant Program provides 
grants to students attending eligible institutions of higher education 
to help them pay for their educational costs. The program supports 
Goals 2000, the President's strategy for moving the Nation toward the 
National Education Goals, by enhancing opportunities for postsecondary 
education. The National Education Goals call for increasing the rate at 
which students graduate from high school and pursue high quality 
postsecondary education and for supporting life-long learning.
    Authority for the Federal Pell Grant Program is contained in 
section 401 of the Higher Education Act of 1965, as amended (HEA), 20 
U.S.C. 1070a. Regulations that govern the Federal Pell Grant Program 
are codified in 34 CFR parts 690, 668, and 600.
    The Federal Pell Grant Program includes a three-step application 
process. Under the first step, a student submits an application, i.e., 
the Free Application for Federal Student Aid (FAFSA), to the Secretary 
to have his or her expected family contribution (EFC) calculated.
    The student may submit a paper or electronic version of that 
application. The student submits a paper application directly to a 
FAFSA processor. The FAFSA processor in turn transmits that application 
to the central processor. FAFSA processors include the Department, the 
College Scholarship Service (CSS), the American College Testing (ACT), 
and the Pennsylvania Higher Education Assistance Agency (PHEAA).
    If the student attends or expects to attend an institution that 
participates in the Department of Education's Electronic Data Exchange 
(EDE), the student may submit an electronic application to the central 
processor through that institution. (Under EDE, using software or 
specifications provided by the Department of Education (Department), an 
institution electronically transmits the student's application 
information to the central processor. The institution may enter the 
application information or the institution may have the student enter 
that information.)
    The Department has developed another type of electronic application 
called the ``FAFSA Express.'' If a student uses the FAFSA Express, he 
or she submits that application electronically to the central processor 
without the involvement of his or her institution or a FAFSA processor.
    As an alternative to an original paper or electronic application, a 
student may submit a paper or electronic ``renewal application.'' A 
renewal application is sent to a student. It is generated by the 
central processor using prior year application information to reduce 
the amount of new data a student must provide for the next award year. 
A renewal application is not available using FAFSA Express.
    Under the second step, the central processor determines a student's 
EFC based upon the information the student provided in the paper or 
electronic application. If the student uses a paper application or 
FAFSA Express, the central processor sends the student a Student Aid 
Report (SAR) on which the central processor reports the student's EFC 
plus the information on which the EFC was based. In addition, the 
central processor also sends this information to any institutions 
participating in EDE that the student selects on his or her 
application.
    If the student applies electronically under EDE, the EDE process 
enables the institution to receive electronically the student's EFC and 
application information. The information contained on this transmission 
is called the Institutional Student Information Record or ISIR. A 
student who applies electronically through EDE does not get an SAR; 
therefore, the institution provides a printed copy of the ISIR 
information to the student. All institutions may also receive at their 
option ISIRs on a magnetic tape or on a paper roster.
    Under the third step, an institution that receives a valid SAR or 
valid ISIR determines a student's eligibility for a Federal Pell Grant 
award and the amount of that award, and pays the student his or her 
award. A valid SAR or valid ISIR is one on which all the information 
used to calculate the student's EFC is accurate and complete.
    If corrections need to be made to a student's application 
information, the central processor must be notified of those 
corrections. However, if a student is selected for verification under 
34 CFR 668.54, by the Secretary or by the institution, corrections need 
not be reported to the central processor if the institution determines 
that the relevant provisions of 34 CFR 668.59 apply.
    Several alternatives are available for notification to the central 
processor. If the institution does not participate in EDE, the student 
must make corrections directly on Part 2 of the SAR and then send the 
corrected SAR to the student's FAFSA processor, which transmits the 
corrected information to the central processor.
    If the student attends an institution that participates in EDE, the 
institution may transmit electronically the corrected information 
directly to the central processor. If the central processor receives 
the corrected information electronically, the EDE process enables the 
institution to receive a corrected ISIR electronically.
    If corrections are made through EDE, the institution must provide 
to the student a printed copy of the results of those corrections so 
that the student has an opportunity to review the accuracy of his or 
her processed application information. The ISIR is valid if it 
accurately reflects corrections that are based on signed correction 
documentation or documentation submitted under 34 CFR 668.57 and is 
processed through the central processor.
    An institution that receives valid ISIRs and reports Federal Pell 
Grant payment data to the Department by floppy disk, magnetic tape, or 
electronic transmission through EDE, may not require a student to 
submit an SAR as a precondition to receiving a Federal Pell Grant 
award.

I. Summary of Deadline Dates--Table I

    The following table is a summary of selected Deadline Dates further 
explained in Parts II. through V. of this notice.

[[Page 16825]]



                                 Table I                                
 A. Summary of Deadline Dates for Application Processing and Receipt of 
    SARs or ISIRs (Explained Further in Parts I. Through III. of This   
                                 Notice)                                
                                                                        
------------------------------------------------------------------------
         Who submits?             What is submitted?       What is the  
                                                          deadline date?
------------------------------------------------------------------------
Student.......................  A paper original/       5/1/96.         
                                 renewal application.                   
Student or student thru         An electronic original/ 5/1/96.         
 institution.                    renewal application.                   
Student.......................  Correction Application  8/1/96.         
                                 (paper).                               
Student.......................  SAR...................  Student's last  
                                                         date of        
                                                         enrollment or 7/
                                                         1/96 whichever 
                                                         is earlier.    
Student or student thru         Corrected SAR or ISIR   8/1/96.         
 institution.                    (paper/                                
                                 electronically).                       
Student or student thru         Written/telephone       8/1/96.         
 institution.                    requests for                           
                                 duplicate SAR.                         
Student.......................  If a student is         The earlier of: 
                                 selected for           (a) 60 days     
                                 verification: (1)       after the      
                                 verification            student's last 
                                 documentation           date of        
                                 submitted by the        enrollment; or 
                                 student and received   (b) 8/30/96.    
                                 by the institution;                    
                                 and (2) if necessary,                  
                                 a reprocessed valid                    
                                 SAR or valid ISIR                      
                                 received by the                        
                                 institution.                           
                                                                        
------------------------------------------------------------------------
  B. Summary of Deadline Dates for Reporting Federal Pell Grant Payment 
       Data (Explained Further in Parts IV. and V. of This Notice)      
                                                                        
------------------------------------------------------------------------
Institution...................  IPS and Payment         no later than   
                                 Voucher data.           the closing    
                                                         date for each  
                                                         reporting      
                                                         period.        
                                   Reporting Periods                    
                                07/01/95 thru 10/15/95  10/15/95.       
                                10/16/95 thru 12/15/95  12/15/95.       
                                12/16/95 thru 02/15/96  02/15/96.       
                                02/16/96 thru 04/15/96  04/15/96.       
                                04/16/96 thru 06/15/96  06/15/96.       
                                06/16/96 thru 08/15/96  08/15/96.       
Institution...................  Final submission of     9/30/96.        
                                 Payment Voucher Data--                 
                                 Secretary closes the                   
                                 institution's Federal                  
                                 Pell Grant account                     
                                 after 9/30/96 except                   
                                 as provided in Part                    
                                 V.B.                                   
Institution...................  Administrative relief.  1/31/97.        
Institution...................  IPS and Payment         Requirement to  
                                 Voucher data for        report, within 
                                 downward adjustments.   30 calendar    
                                                         days, downward 
                                                         adjustments for
                                                         a student with 
                                                         previously     
                                                         reported       
                                                         payments or    
                                                         expected       
                                                         payments that  
                                                         are in excess  
                                                         of the payments
                                                         that the       
                                                         institution is 
                                                         paying the     
                                                         student for the
                                                         award year.    

II. Applications for Determination of Expected Family 
Contribution--Table II

    Under the first application step described above, if a student uses 
a paper original application, including a paper renewal application, he 
or she must submit that application form to the appropriate processor 
listed in Table II of this notice, at the address indicated in Table 
II. That application must be received at that address no later than May 
1, 1996. A paper application may not be hand-delivered.
    An approved application form is an application listed in the first 
column of Table II. The student must send the application to the 
address of the organization whose application is being used. Thus, the 
FAFSA printed and distributed by the Department must be sent to the 
FAFSA processor in Iowa City, Iowa; forms printed and distributed by 
ACT must be sent to ACT; forms printed and distributed by CSS must be 
sent to CSS; and forms printed and distributed by PHEAA must be sent to 
PHEAA.
    If a student submits an electronic application under EDE or FAFSA 
Express, that application must be received by the Department's central 
processor prior to midnight (Central Daylight Savings Time) on May 1, 
1996. (For purposes of this notice, this deadline means that a student 
has all of May 1, 1996, to apply.)
    For the balance of this notice, the first application submitted by 
or on behalf of a student, including a renewal application, shall be 
called an ``original application.''

Applications of Students Receiving ``Dependency Overrides''

    Under section 480(d)(7) of the HEA, a financial aid administrator 
(FAA) may determine that a student qualifies as an ``independent 
student'' as a result of unusual circumstances even though the student 
does not qualify as an independent student under the other criteria in 
section 480(d). This determination, using what is known as 
``professional judgment,'' results in a ``dependency override.'' A 
student or institution must report a dependency override to the central 
processor for purposes of the Federal Pell Grant Program.
    The manner in which a student reports a dependency override to the 
central processor depends on whether the institution the student is 
attending participates in EDE. If the institution does not participate 
in EDE, the student reports the dependency override on a paper 
application, either an original or renewal application, or on the SAR 
that he or she received. In either case, the FAA codes the application 
or the SAR with his or her approval of the override and signs the 
document.
    If the student attends an institution that participates in EDE, the 
student may report the dependency override to the central processor as 
indicated above.

[[Page 16826]]

In addition, the institution may report the override by encoding the 
changes in the student's electronic application information and then 
transmitting the changes to the central processor.

III. Other Documents--Table II

    Once a student has filed his or her original application, the 
student may have to change some information. In some cases, the 
processor receiving the original application may request additional 
information. In other cases, the student may request the processor to 
consider additional or alternative information.
    Table II of this notice lists the addresses to which additional 
forms and information must be sent and the deadline dates for the 
receipt of those forms and information.

A. Correction Application

    Correction applications are required only if two or more students 
initially apply for Federal aid using the same social security number. 
One or more of the students using that SSN must submit a Correction 
Application as determined by the Department on a case-by-case basis. 
The reporting student or students must include on the Correction 
Application all the information necessary to process that application.
    A paper Correction Application may be obtained by calling the 
Department's Correction Application Coordinator at (202) 260-9988. The 
Correction Application must be submitted to the address listed in Table 
II and received at that address no later than August 1, 1996.

B. SAR and ISIR

     Correction or Confirmation of Information Requested by the 
Secretary--If the Secretary returns an SAR to a student for correction 
or notifies an institution through an ISIR that a student needs to 
correct application information, the student must correct that 
information on Part 2 of his or her SAR or through EDE at his or her 
institution. The student must submit a corrected SAR to the appropriate 
address listed in Table II, and that corrected SAR must be received at 
the appropriate address no later than August 1, 1996. If the student 
attends an institution that participates in EDE, the corrected 
application information may be transmitted electronically to the 
central processor. That information must be received by the central 
processor prior to midnight (Central Daylight Savings Time) on August 
1, 1996.
    If the Secretary returns an SAR to a student for confirmation of 
certain data items included on the application or notifies an 
institution through an ISIR that a student needs to confirm application 
information, the student must confirm the information. The student 
confirms the information on the SAR or ISIR and returns the SAR in the 
same manner as described for required corrections, or the student's 
institution transmits the ISIR's corrected application information to 
the central processor. This request for confirmation of application 
information is separate and apart from the verification requirements 
contained in 34 CFR part 668, Subpart E.
     Correction of Inaccurate Information--If an SAR or an ISIR 
reflects information that was inaccurate when the application was 
signed, the student must correct that information on Part 2 of his or 
her SAR and send Part 2 of his or her SAR to the appropriate address 
listed in Table II or have the institution submit the change 
electronically. Part 2 of the student's SAR must be received at the 
appropriate address no later than August 1, 1996.
    If the student attends an institution that participates in EDE, the 
corrected information may be transmitted electronically to the central 
processor. That corrected information must be received by the central 
processor prior to midnight (Central Daylight Savings Time) on August 
1, 1996.
     Request for Duplicate SAR--If a student wishes to receive 
a duplicate SAR, the student may write to the appropriate processor's 
address listed in Table II or call the appropriate processor's 
telephone number listed in Table II. All written and telephone requests 
must be received no later than August 1, 1996. Individuals at the 
processors listed in Table II are not authorized to accept hand-
delivered documents.

C. Deadline for Receipt of a Valid SAR or Valid ISIR

    Although corrections and requests for a duplicate SAR will be 
processed through August 1, 1996, this deadline date does not extend 
the deadline date by which the institution must receive a student's 
valid SAR or valid ISIR with an EFC that permits the student to receive 
a Federal Pell Grant. If, by his or her last date of enrollment or July 
1, 1996, whichever is earlier, the student does not submit a valid SAR 
to the institution or the institution does not receive the student's 
valid ISIR, he or she will be ineligible for a Federal Pell Grant award 
for the 1995-96 award year.

IV. Verification Procedures and Deadline Dates under 34 CFR Part 
668, Subpart E

    The information provided on an application and included on an SAR 
or ISIR may be subject to verification under verification procedures 
contained in 34 CFR part 668, Subpart E. In such a case, in order to 
receive a Federal Pell Grant award for the 1995-96 award year, the 
student--and his or her parents, if applicable--must submit the 
necessary verification documents in accordance with the following 
procedures and by the deadline dates specified below. These dates do 
not conflict with or supersede the deadline dates specified in Table II 
of this notice.

A. Verification of Information on Application

    If a student is selected to have the information on his or her 
application verified under the verification procedures set forth in 
Subpart E of the Student Assistance General Provisions regulations (34 
CFR part 668, Subpart E), he or she must submit the requested documents 
to his or her institution as specified below. The deadline date for the 
completion of these steps is the earlier of (a) within 60 days after 
the student's last date of enrollment; or (b) August 30, 1996. A 
student who will still be enrolled in a course of study in the 1995-96 
award year after August 30, 1996, must submit the requested documents 
by August 30, 1996. (Documents that are hand-delivered must be received 
by the institution within 60 days after the student's last date of 
enrollment or on August 30, 1996, whichever is earlier. Documents sent 
by mail must be postmarked or demonstrate other comparable proof of 
mailing within 60 days after the student's last date of enrollment or 
on August 30, 1996, whichever is earlier.)
    The verification process is complete when the student:
    (1) Submits all requested verification documents to his or her 
institution; and
    (2) If corrections must be submitted to the central processor--
    (i) Makes all necessary corrections using (a) Part 2 of the SAR, 
(b) an ISIR, or (c) a Correction Application;
    (ii) Either (a) signs the corrected Part 2 of the SAR or completes 
and signs a paper Correction Application and submits it to the 
appropriate address indicated in Table II so that the addressee 
receives either form prior to midnight (Central Daylight Savings Time) 
on August 1, 1996; or (b) signs and submits the necessary documentation 
for a corrected ISIR to the institution so that the institution can

[[Page 16827]]

transmit the data to the central processor (for those institutions 
participating in EDE) prior to midnight (Central Daylight Savings Time) 
on August 1, 1996; and
    (iii) By August 30, 1996, submits to the institution the corrected 
and reprocessed SAR (alternatively, the institution receives the 
student's corrected ISIR from the central processor). (34 CFR 668.60)

B. Application Forms and Information

    Student aid application forms and information brochures may be 
obtained at an institution's financial aid office, at an Educational 
Opportunity Center, or by writing or calling the Federal Student Aid 
Information Center, P.O. Box 84, Washington, DC 20044. Telephone: 1-
800-4-FED-AID (1-800-433-3243)

 Table II.--Deadline Date for Receipt of Original Application Forms for 
  Determining Expected Family Contributions: May 1, 1996. Deadline Date 
 for Receipt of Correction Application Forms and Other Documents: August
                                 1, 1996                                
------------------------------------------------------------------------
                                 For information                        
         Type of form                 about               Contacts      
------------------------------------------------------------------------
Free Application for Federal    English/Spanish    Federal Student Aid  
 Student Aid (FAFSA) printed     Application        Information Center  
 and distributed by ED.          request.           Box 84, Washington, 
                                                    DC 20044, (800) 4   
                                                    FED AID, TTY (800)  
                                                    730-8913.           
                                Correction         (202) 260-9988.      
                                 Application                            
                                 request.                               
                                English            Federal Student Aid  
                                 Application        Programs, P.O. Box  
                                 submission.        4032, Iowa City, IA 
                                                    52243-4032.         
                                Renewal            Federal Student Aid  
                                 Application        Programs, P.O. Box  
                                 submission.        4051, Iowa City, IA 
                                                    52243-4051.         
                                Spanish            Federal Student Aid  
                                 Application        Programs, P.O. Box  
                                 submission.        4039, Iowa City, IA 
                                                    52243-4039.         
                                Correction         Federal Student Aid  
                                 Application        Programs, P.O. Box  
                                 submission.        1002, Iowa City, IA 
                                                    52243-1002.         
                                SAR corrections..  Federal Student Aid  
                                                    Programs, P.O. Box  
                                                    4037, Iowa City, IA 
                                                    52243-4037.         
                                Duplicate          Federal Student Aid  
                                 requests/address   Programs, P.O. Box  
                                 changes.           4038, Iowa City, IA 
                                                    52243-4038.         
                                All other          Federal Student Aid  
                                 correspondence     Information Center, 
                                 inquiries.         P.O. Box 84,        
                                                    Washington, DC      
                                                    20044, (800) 4 FED  
                                                    AID, TTY (800) 730- 
                                                    8913.               
FAFSA Express.................  To request         (800) 801-0576.      
                                 copies, obtain                         
                                 technical                              
                                 assistance, or                         
                                 perform status                         
                                 checks.                                
Federal Electronic Application  Application or     Contact institution's
 or Renewal Application of the   Renewal            financial aid office
 Electronic Data Exchange.       Application        to find out if it   
                                 request,           participates in the 
                                 electronic         electronic          
                                 corrections,       application of EDE. 
                                 electronic        Electronically       
                                 duplicate          submitted by the    
                                 requests, and      institution to the  
                                 other inquiries.   central processor   
                                                    via General         
                                                    Electronic Support  
                                                    computer network or 
                                                    Title IV Wide Area  
                                                    Network.            
                                Diskette and tape  National Computer    
                                 submission.        Systems--Electronic 
                                                    Application, Box 30,
                                                    Iowa City, IA 52244,
                                                    (319) 339-6642.     
Free Application for Federal    Application        American College     
 Student Aid (printed,           request.           Testing, P.O. Box   
 distributed, and processed by                      1002, Iowa City, IA 
 ACT).                                              52243-1002.         
                                Application        Federal Student Aid  
                                 submission.        Programs, P.O. Box  
                                                    4005, Iowa City, IA 
                                                    52243-4005.         
                                Renewal            Federal Student Aid  
                                 Application        Programs, P.O. Box  
                                 submission.        4027, Iowa City, IA 
                                                    52243-4027.         
                                SAR corrections..  Federal Student Aid  
                                                    Programs, P.O. Box  
                                                    4025, Iowa City, IA 
                                                    52243-4025.         
                                Duplicate request  Federal Student Aid  
                                 and address        Programs, P.O. Box  
                                 changes.           4021, Iowa City, IA 
                                                    52243-4021.         
Free Application for Federal    Application        College Scholarship  
 Student Aid (printed,           request and        Service, P.O. Box   
 distributed, and processed by   other inquiries.   6327, Princeton, NJ 
 CSS).                                              08541-6327, (609)   
                                                    771-7725, TDD (609) 
                                                    883-7051.           
                                Application        Federal Student Aid  
                                 submission.        Programs, P.O. Box  
                                                    7320, London, KY,   
                                                    40742-7320.         
                                Renewal            Federal Student Aid  
                                 Application        Programs, P.O. Box  
                                 submission.        7321, London, KY    
                                                    40742-7321.         
                                SAR corrections..  Federal Student Aid  
                                                    Programs, P.O. Box  
                                                    7322, London, KY    
                                                    40742-7322.         
                                Duplicate request  Federal Student Aid  
                                 and address        Programs, P.O. Box  
                                 changes.           7323, London, KY    
                                                    40742-7323.         
Free Application for Federal    Application        Pennsylvania Higher  
 Student Aid (printed,           request and        Education Assistance
 distributed, and processed by   other inquiries.   Agency (PHEAA),     
 PHEAA).                                            Grants Division,    
                                                    1200 North 7th      
                                                    Street, Harrisburg, 
                                                    PA 17102, (800) 692-
                                                    7435 (PA only),     
                                                    (717) 257-2800 (out 
                                                    of state).          
                                Application        Federal Student Aid  
                                 submission.        Programs, P.O. Box  
                                                    8179, Harrisburg, PA
                                                    17105-8179.         
                                Renewal            Federal Student Aid  
                                 Application        Programs, P.O. Box  
                                 submission.        8178, Harrisburg, PA
                                                    17105-8178.         

[[Page 16828]]

                                                                        
                                SAR corrections/   Federal Student Aid  
                                 duplicate          Programs, P.O. Box  
                                 requests/          8135, Harrisburg, PA
                                 address changes.   17105-8135.         
------------------------------------------------------------------------



V. Submissions to the Secretary of Institutional Payment Summary 
and Payment Voucher Data

    Each institution that participates in the Federal Pell Grant 
Program is required by 34 CFR 690.83(b) to submit to the Secretary 
reports and information in connection with the Federal Pell Grant funds 
the Department makes available to the institution for payment to 
students during an award year. One of the reports is the Institutional 
Payment Summary (IPS). The IPS accompanies an institution's submission 
of Federal Pell Grant Payment Vouchers and summarizes the information 
contained on the individual Payment Vouchers. A Payment Voucher is (1) 
if paper, Part 3 of an SAR, or (2) an electronic or magnetic student 
payment record. The Secretary provides the IPS to the institution to 
use at its option.
    The institution may also meet this reporting requirement by 
submitting IPS and Payment Voucher data to the Department on a floppy 
disk, on a magnetic tape, or by an electronic transmission. These 
submissions are referred to, respectively, as the Federal Pell Grant 
Program Floppy Disk Data Exchange, the Federal Pell Grant Program 
Recipient Data Exchange (RDE), and the Electronic Payments Service 
under EDE. An institution that wishes to use one of these automated 
reporting methods must enter into a written agreement with the 
Department and must agree to (1) comply with the Department's 
prescribed manner of formatting and presenting the submitted 
information, (2) restrict access to the records from which the IPS and 
Payment Voucher data is derived, and (3) ensure that only authorized 
officials or agents of the institution may enter the data sent in the 
submission to the Department.

    Note: The 1995-96 award year is the last year that the IPS and 
paper Payment Vouchers are being used. The Department recommends 
that an institution that has submitted student payment information 
using only paper Payment Vouchers begin in the 1995-96 award year to 
submit some of its IPS and Payment Voucher data electronically or 
magnetically in order to acquire experience in the use of these 
media prior to the time the institution will be required to report 
all student payment information using an automated data exchange 
medium.

    The Department credits an institution's Federal Pell Grant account 
on the basis of accepted Federal Pell Grant payment data submitted 
through the process described in this notice. Such data must be 
submitted to the Department in a timely, certified, and acceptable 
form. A submission is timely if received by the Department by the 
applicable deadline prescribed in Table III in Part V.C. of this notice 
and in Part V.D. of this notice; certified if its accuracy is attested 
to by the institution in the manner described in Part V.E. of this 
notice; and acceptable if submitted in accordance with the directions 
provided by the Department for the particular medium of submission used 
by the institution.
    Failure to meet these reporting requirements may result in 
administrative action by the Department under Subpart G of 34 CFR part 
668 under which the Department may fine the institution or limit or 
terminate its participation in the Federal Pell Grant Program. In 
addition, failure to report accurately a student's award amount by the 
reporting deadline may render the institution liable for all or part of 
a student's Federal Pell Grant payment without the student being liable 
for such payment.

A. Data To Be Submitted

    In each submission, the institution must supply:
    (1) The summary data in Section II of the IPS or the equivalent 
under the applicable automated data exchange, including the number and 
amount of the Federal Pell Grant payments in the submission and the 
institution's total payments to all Federal Pell Grant recipients for 
the award year up to the date of the submission; and
    (2) Payment Voucher data as defined by the Secretary, that 
identify--
    (i) Any new Federal Pell Grant recipients identified by the 
institution during the reporting period for which the IPS data are 
submitted; or
    (ii) Any change in enrollment status, cost of attendance, or other 
event that occurred during either the reporting period for which the 
IPS data are submitted or the reporting period immediately preceding 
that reporting period, if that event causes a change in the amount of 
the Federal Pell Grant that a student has received or qualifies to 
receive for the award year.
    The institution may submit IPS data without Payment Voucher data if 
(1) the institution had no Federal Pell Grant recipients in attendance 
or made no new Federal Pell Grant awards during the reporting period 
for which the IPS data are submitted and (2) did not identify any 
changes to the awards of previously reported recipients during the 
reporting period immediately preceding the period for which the IPS is 
submitted. If an RDE institution exercises this option, it must submit 
a paper IPS. If an institution that submits recipient data via a floppy 
disk or electronic transmission exercises this option, it may use its 
usual submission medium or the paper IPS. [Approved by the Office of 
Management and Budget under OMB Control Numbers 1840-0132 (SAR) and 
1840-0540 (IPS)]

B. Addresses for Delivery

    The institution must submit the IPS and Payment Voucher data as 
follows:

------------------------------------------------------------------------
               Regular mail                        Courier service      
------------------------------------------------------------------------
U.S. Department of Education, Application   U.S. Department of          
 and Pell Processing Systems Division,       Education, Application and 
 PSS, P.O. Box 10800, Herndon, Virginia      Pell Processing Systems    
 22070-7009.                                 Division, PSS, c/o PRC,    
                                             Inc., Attn: G-T01 PGRFMS/  
                                             DMS 12001 Sunrise Valley   
                                             Drive, Reston, Virginia    
                                             22091-3423.                
------------------------------------------------------------------------

Electronic Transmission
    If the institution participates in the EDE Electronic Payment 
service, the institution electronically transmits the IPS and Payment 
Voucher data to the central processor.

C. Frequency and Schedules for IPS Submissions

    Except as provided in Part IV.D. of this notice, an institution 
must make a submission of IPS and Payment Voucher data at least once 
during each of the

[[Page 16829]]

reporting periods established in Table III. An institution may make 
submissions more frequently, up to but not exceeding 60 times during 
the entire reporting cycle (July 1, 1995 through September 30, 1996).
    For purposes of complying with the reporting requirements of Part 
V.A. of this notice, an institution must ensure that the IPS and 
Payment Voucher data are received by the Department no later than the 
applicable closing date for each reporting period as specified in the 
table below. Proof of mailing, such as a date on a U.S. Postal Service 
postmark, is not considered confirmation of receipt by the Department. 
If an institution submits its IPS and Payment Voucher data 
electronically, the transmission must be received at the Department's 
central processor prior to midnight (Central Time) of the applicable 
closing date for the reporting periods indicated in Table III. For the 
1995-96 award year, the closing dates for reporting periods to report 
IPS submissions have been combined. This change allows all institutions 
to follow the same reporting schedule when submitting their IPS and 
Payment Voucher data regardless of their Federal Pell Grant 
authorization level.

             Table III.--Closing Dates for Reporting Periods            
------------------------------------------------------------------------
           Reporting periods                 Closing date for receipt   
------------------------------------------------------------------------
July 1, 1995 through Oct. 15, 1995.....  Oct. 15, 1995.                 
Oct. 16, 1995 through Dec. 15, 1995....  Dec. 15, 1995.                 
Dec. 16, 1995 through Feb. 15, 1996....  Feb. 15, 1996.                 
Feb. 16, 1996 through Apr. 15, 1996....  Apr. 15, 1996.                 
Apr. 16, 1996 through June 15, 1996....  June 15, 1996.                 
June 16, 1996 through Aug. 15, 1996....  Aug. 15, 1996.                 
------------------------------------------------------------------------

    If any closing date for receipt falls on a Saturday, Sunday, or 
Federal holiday, submissions received on the next Federal business day 
will be considered as received on time.

    Note: Institutions will not be penalized for not meeting the 
reporting periods before the publication of this notice.

D. Reporting Downward Adjustments of Previously Submitted Student 
Payment Information

    This notice contains a new reporting requirement relating to 
downward adjustments of previously submitted student payment 
information. Under this new requirement, an institution must submit 
revised payment data to the Department for a student within 30 calendar 
days of becoming aware that the previously reported payments or 
expected payments for that student exceed the amount that the student 
is actually receiving at the institution for the 1995-96 award year. 
These submissions of downward adjustments may be combined on a single 
IPS and Payment Voucher data submission with other data submissions.
    For example, a student initially enrolls for the winter quarter at 
an institution and indicates that he or she will be attending the 
institution in the spring quarter. The institution submits its IPS and 
the student's Payment Voucher data reporting a winter payment of one-
third the student's Scheduled Award and an expected spring payment of 
another one-third of the student's Scheduled Award. The student does 
not enroll for the spring quarter. The institution, therefore, must 
submit the student's Payment Voucher data reducing the expected spring 
payment to zero dollars within 30 calendar days of becoming aware of 
the student's failure to enroll for the spring quarter.
    An institution must ensure that the IPS and accompanying Payment 
Voucher data are received by the Department no later than the 30-
calendar-day deadline in accordance with the same procedures in Part 
V.C. of this notice for meeting the deadlines for IPS submissions in 
Table III, including being able to show proof of mailing or meeting the 
deadline for transmission, if data are submitted electronically.

    Note: The first time an institution is required to report such a 
downward adjustment is not earlier than 30 days after the 
publication of this notice.

E. Certification of Accuracy

    Institutions participating in the Federal Pell Grant Program must 
certify the accuracy of the data with each data submission. An 
institution submitting a paper IPS certifies the accuracy of the data 
by including on the form an original signature by the official of the 
institution accountable for the accuracy of the data submitted. In the 
case of an institution submitting data by magnetic tape, the 
institution signs the tape transmittal form assuring the accuracy of 
the data. An institution submitting an IPS by floppy disk or electronic 
transmission certifies the accuracy of the data by including in that 
submission a code or signature flag prescribed by the Department for 
that certification. By including the prescribed code or signature flag, 
an institution certifies that the submitted data have been provided 
from a file or record to which only officials with appropriate security 
clearance have access and that the data contained in the submission are 
accurate.

VI. Annual Deadline for Submission of Payment Voucher Data and 
Requests for Adjustments of Federal Pell Grant Accounts

    An institution obtains an adjustment to its Federal Pell Grant 
account, and the amount of Federal Pell Grant funds for which it is 
accountable, by submitting supporting Payment Voucher data under the 
procedures described in this notice and the reporting system described 
in the regulations. An institution is required by 34 CFR 690.83(a) to 
submit all Payment Voucher data for an award year by a specified date 
following that award year; for the 1995-96 award year, that date is 
September 30, 1996. An institution, therefore, must submit any Payment 
Voucher data not previously submitted during the required reporting 
periods established in this notice by September 30, 1996, to receive an 
adjustment to its Federal Pell Grant account on the basis of these 
Payment Voucher data.
    Except as provided in Part VI.B. of this notice, after September 
30, 1996, the Secretary closes the institution's Federal Pell Grant 
account for the 1995-96 award year. The institution's account is closed 
on the basis of the information reported by the institution in its 
accepted IPS and Payment Voucher data submissions through September 30, 
1996, and the data reported on the Federal Cash Transaction Report (ED/
PMS 272A). The final IPS and Payment Voucher data submitted by the 
institution must accurately report the institution's total payments to 
all Federal Pell Grant recipients for the 1995-96 award year.

A. Timely Delivery for Final Submissions of Payment Voucher Data and 
Requests for Adjustments of Federal Pell Grant Accounts: Proof of 
Delivery

    The Department may require an institution to prove that it mailed 
or otherwise submitted its IPS and Payment Voucher data by the 
September 30, 1996 deadline date. The Department accepts as proof, if 
the documents were submitted by mail or by non-U.S. Postal Service 
courier, one of the following:
    (1) A legible mail receipt with the date of mailing stamped by the 
U.S. Postal Service.
    (2) A legibly-dated U.S. Postal Service postmark.
    [Note: The U.S. Postal Service does not uniformly provide a dated 
postmark.

[[Page 16830]]

Before relying on this method of proof of mailing, an institution 
should check with the post office at which it mails its submission. An 
institution is strongly encouraged to use First Class Mail.]
    (3) A dated shipping label, invoice, or receipt from a commercial 
courier.
    (4) Other proof of mailing or delivery acceptable to the Secretary.
    The Department accepts hand deliveries at the address stated in 
Part IV.B. between 8 a.m. and 4:30 p.m. Eastern Time on days other than 
Saturday, Sunday, or Federal holidays.
    An institution that transmits its IPS and Payment Voucher data 
information via the EDE Electronic Payments service must ensure that 
its transmission is completed before midnight (local time at the 
institution's EDE destination point) on September 30, 1996.

B. Postdeadline Adjustments to Federal Pell Grant Accounts

    In accordance with Sec. 690.83(a), Sec. 690.83(c), and 
Sec. 690.83(e), the Secretary permits a post-September 30, 1996 
adjustment to the Federal Pell Grant account of an institution for the 
1995-96 award year under the following circumstances:
    (1) Underpayment of previously reported awards An institution may 
receive a payment or credit for the full amount of an award made to a 
student if--
    (i) The institution submitted in a timely manner Payment Voucher 
data for a student in accordance with the requirements of this notice 
and Sec. 690.83(a);
    (ii) The institution did not submit in a timely manner or in an 
acceptable form Payment Voucher data necessary to document the full 
amount of the award for which that student was eligible;
    (iii) The underpayment for that award is or would be at least $100; 
and
    (iv) A program review or an audit report produced in accordance 
with the standards prescribed in 34 CFR 668.23(c) demonstrates to the 
satisfaction of the Secretary that the student was eligible to receive 
an amount greater than that reported in the Payment Voucher data 
submitted in a timely fashion to, and accepted by, the Department.
    (2) Decreasing previously reported awards An institution must 
report a reduction in a student's Federal Pell Grant award--
    (i) If the institution determines that the student's Federal Pell 
Grant award amount, as reported on either the Student Payment Summary 
that the Department provides to the institution or any subsequent 
adjustment to the student's award amount on file with the Department, 
is greater than the amount the student actually received; or
    (ii) If the institution determines that a student was not qualified 
for the amount reported on either the Student Payment Summary or any 
subsequent adjustment to the student's award amount on file with the 
Department. The institution should make such a report, however, for an 
overaward for which it is not liable under Sec. 690.79(a) only if the 
student received zero funds or has repaid all or a portion of the 
overaward. If a student is repaying an overaward for which the 
institution is not liable on an installment plan, the institution must 
report periodically the amount repaid.
    (3) If the institution demonstrates to the Secretary's satisfaction 
that its failure to submit Payment Voucher data on a timely basis and 
have them accepted by the Department was caused by a processing or 
administrative error made by the Department or one of its contractors, 
or was due to unusual circumstances beyond the control of the 
institution, the institution may receive payment for the grants 
associated with that data.
    (4) If an institution demonstrates to the satisfaction of the 
Secretary that the institution has provided Federal Pell Grants but has 
not received credit or payment for those grants, the institution may 
receive payment or a reduction in accountability for those grants if, 
in accordance with Sec. 690.83(e), the institution demonstrates that it 
qualifies for a credit or payment by means of a finding contained in an 
audit submitted in accordance with 34 CFR part 668.23(c).
    The Secretary adjusts an institution's Federal Pell Grant account 
for an award year on the basis of student award data submissions made 
after September 30 following that award year only in these specified 
circumstances. Thus, if an institution submits Payment Voucher data for 
the 1995-96 award year to the Department after the September 30, 1996 
deadline, the institution does not receive additional Federal Pell 
Grant funds from the Department unless the institution can demonstrate 
to the satisfaction of the Secretary that one of the prescribed 
conditions exists. The institution also is liable for Federal Pell 
Grant funds that are used to pay grants that are not reported in a 
timely manner.
    If an institution makes Federal Pell Grant overpayments for which 
it is liable under Sec. 690.79(a) of the Federal Pell Grant program 
regulations, the Secretary subtracts from any funds the institution may 
be entitled to receive under Part VI.B. of this notice the amount of 
the institution's unpaid liability. If an institution believes that an 
adjustment is warranted on the basis of the above-described conditions, 
it should contact the Institutional Financial Management Division at 
(202) 708-9807.
    If the institution seeks administrative relief on the basis of an 
administrative error by the Department or its contractors, the 
institution's request must provide a complete description of all 
relevant facts, including each student's identifying data and full 
Federal Pell Grant payment history. The request must be received by the 
Department no later than January 31, 1997. The request must be 
delivered to: U.S. Department of Education, Institutional Financial 
Management Division, AFMS, P.O. Box 23791, Washington, DC 20026-0791.

C. Request for Duplicate Payment Vouchers or Related Information

    To request a duplicate Payment Voucher, Processed Payment Voucher, 
or processed payment data, an institution must contact the Federal Pell 
Grant Program by fax at (202) 401-0387 or by mail to: U.S. Department 
of Education, Institutional Financial Management Division, AFMS, P.O. 
Box 23791, Washington, DC 20026-0791.
    To receive a duplicate Payment Voucher, an institution must include 
with its request a photocopy of either Part 1 or Part 2 of a student's 
SAR or a photocopy of that student's ISIR. All requests must be 
received no later than August 31, 1996. Requests after that date will 
be honored, but untimely receipt of duplicate data may not be used as a 
basis for requesting upward adjustments under Part IV.B. of this 
notice.
Applicable Regulations
    The regulations applicable to this program are the Federal Pell 
Grant Program regulations in 34 CFR part 690 and the Student Assistance 
General Provisions regulations in 34 CFR part 668.

(Authority: 20 U.S.C. 1070a)

    Dated: April 9, 1996.
David A. Longanecker,
Assistant Secretary for Postsecondary Education.
(Catalog of Federal Domestic Assistance No. 84.063, Federal Pell 
Grant Program)

[FR Doc. 96-9375 Filed 4-16-96; 8:45 am]
BILLING CODE 4000-01-P