12-21: FY 2017 Sequester-Required Changes to the Iraq and Afghanistan Service Grant Program

Posted Date: December 21, 2016

Author:  Jeff Baker, Director, Policy Liaison and Implementation, Federal Student Aid

Subject: FY 2017 Sequester-Required Changes to the Iraq and Afghanistan Service Grant Program

In Dear Colleague Letter GEN-16-11 published on May 31, 2016, we provided information about federal fiscal years 2016 (FY 2016) and 2017 (FY 2017) sequester-required reductions to certain Title IV federal student aid programs. One of those programs is the Iraq and Afghanistan Service Grant Program.  The amount of a student’s Iraq and Afghanistan Service Grant is based on the maximum Federal Pell Grant for the relevant award year.  As a result of President Obama’s Early FAFSA Initiative we announced in October, as part of the release of the 2017-2018 Federal Pell Grant Payment and Disbursement Schedules, that the maximum Federal Pell Grant for the 2017-2018 award year will be $5,920. Thus, all 2017-2018 Iraq and Afghanistan Service Grant awards will be based on $5,920, adjusted for sequestration as follows:

  First Disbursement Prior to October 1, 2017

    Scheduled Award:  $5,920
    Sequestration Reduction Percent: 6.90%
    Sequestration Reduction Amount: $408.48
    Adjusted Scheduled Award: $5,511.52

As a reminder, the amount of the grant is determined by the date of the first disbursement. Any subsequent disbursements, even if made on or after October 1, have the same sequestration adjustment that applied to the first disbursement of the grant.

  First Disbursement On or After October 1, 2017

  We are not able to provide amounts for Iraq and Afghanistan Service Grants where the first disbursement will be on or after October 1, 2017 since those sequester-related reductions have not yet been determined. We expect to have that information in the Spring of 2017.

Contact Information

For questions about the Iraq and Afghanistan Service Grant Program or sequester-required changes, contact Rene Tiongquico at 202/377-4270 or by e-mail to Rene.Tiongquico@ed.gov.

 

Publication Date: 12/21/2016


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