The Department of Education’s (ED) Office of Federal Student Aid (FSA) is providing operational guidance for schools that may receive transfer students from an institution owned by the Dream Center Education Holdings — Argosy University and The Art Institutes. The most current information about this developing situation for students is available on FSA’s website.
Specifically, ED is providing information about reporting award and disbursement information for the Federal Pell Grant Program. At this time, FSA has no separate guidance for reporting award and disbursement exceptions for the Direct Loan Program. However, FSA does expect that Direct Loan awards and disbursements made by these schools for the payment period beginning on or after Jan. 1, 2019 will be cancelled.
Some students may have had 2018-19 Pell Grant funds disbursed to them for attendance at one of these schools that may close, but want to enroll at other schools (receiving schools) and, consistent with ED’s guidance, receive federal student aid at the receiving school. In many cases, these students already will have received 100 percent of their Pell Grant Scheduled Award, even though they had their attendance interrupted due to the potential closure.
A student cannot ultimately receive more than the statutorily set annual limits for Pell Grant funds. However, in cases where it appears a student has received 2018-19 Pell Grant funds at Argosy University or The Art Institutes, the receiving school may submit the Pell Grant award and disbursement information to COD with an Additional Eligibility Indicator (AEI) tag with a value of “True.” The AEI tag will allow the award and/or disbursement record to process for the current payment period in 2018-19, assuming the record passes all other system edits.
Note: Receiving schools may still encounter existing COD System edits related to Lifetime Eligibility Used (LEU) calculations or Potential Overaward Process (POP) situations through the course of submitting the AEI-tagged Pell Grant awards and disbursements.
If you have any questions about the information in this announcement, contact the COD School Relations Center at 1-800-848-0978. You may also email CODSupport@ed.gov.
Publication Date: 3/12/2019