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University of Phoenix and Federal Pell Grants

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Danielles19

Junior Member
What is the name of your state (only U.S. law)? Indiana

Hello,

I am currently attending the Axia College which is University of Phoenix's online school. I think a problem may be developing and I want to make sure I am aware of the options I have. Let me explain.

In April 2010, I completed the last correction on my FAFSA to update my tax information.

I worked with an adviser at UoP to complete my application and enroll. I completed the verification process for financial aid by faxing in my 2009-2010 signed tax returns to UoP. I qualified for the maximum amount of the Federal Pell Grant (5350.00) and also elected loans(5500.00 & 3500.00). I was approved for all funding and received an award letter from UoP on 5/21/10. I enrolled in UoP on May 24, 2010 for my first block of classes.

I received my loans which half was disbursed on 5/31/10 and the other half on 9/29/10. My Pell grant, half the amount, also disbursed on 5/31/10.

To date, I have only received one Pell grant disbursement in the amount of $2675.00.

I am still enrolled in UoP classes and I am a straight 'A' student there. I am taking 2 classes right now. I completed a total of six classes thus far totaling 18 credit hours.

I have contacted the Financial Aid office, my financial Adviser, the Department of Education, and the FAFSA office about the delay in disbursement.

UoP's reps told me that some recent Congressional law changes have delayed the processing of financial aid awards. They informed me that it was not the school but the Dept of Ed that was causing the delay.

When I spoke with the Dept of Ed, they had never heard of this. They stated no changes have been made that they are aware of. They connected me with the FAFSA dept. They confirmed my FAFSA was received in April 2010 and everything on their end was golden for both the 2009-2010 and the 2010- 2011 academic year. They advised me that the delay is by the school if they need to process verification.

After reading UoP catalog and referencing the Federal regulations regarding disbursement, I am concerned that because of this processing delay there will be a problem posting the full amount of my Pell grant.

From my previous attendance at a traditional university, normally the Pell grant is released in two disbursements, one for the Fall semester and one for the Spring Semester. My adviser confirmed my first disbursement was for the 09-10 year and the next disbursement would be for the 10-11 year.

UoP does not have a traditional calendar year, according to their catalog:

'Students qualifying for financial aid may receive a new award each academic year. An academic year is defined as the period of time in which a student completes at least 24 credit hours and 30 weeks of instructional time. Therefore, students may have their eligibility assessed for grants and/or loans several times during their program of study. The average processing time for financial aid is 90 days. Students should reapply for financial aid prior to the start of each new academic year.'

- In my case, the academic year is identified on my UoP paperwork as 5/24/10 - 2/1/11.

According to the Department of Education's website regarding Pell Grants:

'Federal Pell Grants are direct grants awarded through participating institutions to students with financial need who have not received their first bachelor's degree or who are enrolled in certain postbaccalaureate programs that lead to teacher certification or licensure. Participating institutions either credit the Federal Pell Grant funds to the student's school account, pay the student directly (usually by check) or combine these methods. Students must be paid at least once per term (semester, trimester, or quarter); schools that do not use formally defined terms must pay the student at least twice per academic year (http://www2.ed.gov/programs/fpg/index.html)'.

I reviewed Federal regulations (34 CFR 668.164) regarding fund disbursements but I am not sure I completely understand it.

My question: If UoP does not disburse my funds before I end my academic year, does this mean that I would not be entitled to that Pell grant or would UoP have to disburse according to the Pell guidelines (twice per academic year)?

Any help understanding this matter would be appreciated. After reviewing all the negative media regarding UoP practices recently, I'm concerned. Thanks!
 


Humusluvr

Senior Member
From my reading of your final statement, they should disburse the funding twice per year. I attended the UoP for part of my Master's, and if I remember correctly, they had one month and 6-week classes. Since this is not semester, trimester, or quarterly classes, the twice-per-year disbursement should be how this goes.

'Federal Pell Grants are direct grants awarded through participating institutions to students with financial need who have not received their first bachelor's degree or who are enrolled in certain postbaccalaureate programs that lead to teacher certification or licensure. Participating institutions either credit the Federal Pell Grant funds to the student's school account, pay the student directly (usually by check) or combine these methods. Students must be paid at least once per term (semester, trimester, or quarter); schools that do not use formally defined terms must pay the student at least twice per academic year (Federal Pell Grant Program)'.
 

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