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Negotiators debate rule that could bar Pell when nonfederal grants equal a student's cost of attendance
Summary
Department staff proposed a regulatory construction of a statute that would make students ineligible for Pell during an award year if nonfederal grant aid equals or exceeds the student's exact award‑year cost of attendance; negotiators raised equity, carve‑out, and implementation concerns for veterans, foster youth, and short programs.
The Department of Education presented a proposed regulatory interpretation of statutory language that would render a student ineligible for Pell Grant funds for an award year if the student receives nonfederal grant assistance "in an amount that equals or exceeds the student's cost of attendance" for that award year. David Musser told negotiators the regulation would require institutions either to reduce the nonfederal assistance so it no longer meets the threshold or to return Pell funds paid for that award year.
Program attorney Jake Lalo justified why the draft uses mandatory language: "The reason why it has to be must is because the statute says that they're not eligible for a Pell grant if…
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