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Pell Grant Eligibility Restoration

There is a cap on the total amount a student may receive over the course of their lifetime in Federal Pell Grant funds. The U.S. Department of Education refers to the portion of Pell Grant eligibility a student has received to date as their Pell Lifetime Eligibility Used (LEU).

Students who received Pell Grants at institutions that closed before they earned their credentials qualify for restoration of the Pell Grant lifetime eligibility that they used at closed institutions, provided they were enrolled during either the year in which the school closed or the award year immediately prior. For example:

  • If you were enrolled in the 2015-16 academic year (also known as the “award year”) at an institution that closed in the 2016-17 academic year or award year, then you would be eligible to have your Pell Grant eligibility reset.
  • If you were enrolled in the 2014-15 academic year or award year at an institution that closed in the 2016-17 academic year or award year, then you would not be eligible to have your Pell Grant eligibility reset.

It is important to note the following:

  • There is no action required on your part. If you are eligible, the U.S. Department of Education will notify you.
  • You may be ineligible to receive Pell Grant restoration if you don’t have an approved borrower defense application.
  • If you graduated from the program, you do not qualify to have your Pell Grant eligibility reset.
  • The Department of Education has started to modify its systems to implement the restoration of Pell Grant eligibility for students who received Pell Grant funds for attendance at a now-closed school. Your adjusted eligibility amount will be displayed in the National Student Loan Data System (NSLDS).
  • Processing times may vary.