The school has a student who was enrolled in module 1 in the last term of their program. The student was awarded the less-than-half time Federal Pell Grant amount, and was not eligible for Direct Loan due to less-than-half time status. The student received an “F” grade in module 1 and needed to retake the course. The student repeats the course in module 2 of the same term. The student was awarded a second disbursement of Pell. Can the student also receive a Direct Loan?
Yes. Nothing in the regulations would prevent repeated coursework rules from being applied within a semester, as opposed to across semesters.
Also, per ED's Program Integrity Q&A, Retaking Coursework, RC-A1, "You may include any repetition of the program in a student’s enrollment status for a term as long as the student has never passed the course. If the student passes the course, you may include one repetition after passing the course. Any second or subsequent repetition of the passed course may not be included in the student’s enrollment status for purposes of the title IV, HEA, programs. [Guidance issued 8/26/2011] "
Since the student failed the course in the first module, it counts toward the student's enrollment status when they enroll in the next module.
For additional information, try the Student Aid Reference Desk. It is a central hub of all the important financial aid resources you need with direct links to legislation, regulation, Dear Colleague Letters, and other ED and NASFAA references. It is updated on a rolling basis with the latest news and changes. Search Student Eligibility.
Publication Date: 3/29/2021