enrollment	intensity	changes	before	the	disbursement	is	made.	If	the	student	withdraws	from	all	classes	(or	doesn9t	begin
attending	any	classes),	you	must	follow	the	procedures	discussed	in	Volume	5.
Pell	Recalculation	Due	to	Change	in	COA
When	a	student9s	COA	changes	during	the	award	year,	and	their	enrollment	intensity	remains	the	same,	you	may	(but	are
not	required	to)	establish	a	policy	under	which	you	recalculate	the	student9s	Pell	Grant	award.	Once	established,	you	must
consistently	apply	such	a	recalculation	policy	to	all	students	in	the	program.
Tuition	and	Fee	Charges	and	Recalculation
If	your	school	recalculates	a	student9s	Pell	Grant	due	to	a	change	in	enrollment	intensity	but	continues	to	charge	tuition
and	fees	for	credit	hours	that	are	no	longer	included	in	the	student9s	enrollment	intensity	for	Pell	Grant	purposes,	this
does	not	affect	the	requirement	to	recalculate	the	student9s	Pell	Grant	award.
For	example,	if	a	student	enrolls	as	a	full-time	student	with	12	credits,	but	never	starts	attendance	in	a	3-credit	class	that
starts	after	the	school9s	<add/drop=	date,	the	student9s	award	must	be	recalculated	based	on	9	credits	or	75%	enrollment
intensity.	This	is	true,	even	though	the	school	charges	tuition	for	any	classes	dropped	after	the	<add/	drop=	date,	and
therefore	continues	to	charge	the	student	for	12	credits.
Recalculation	of	Pell	Grant	Awards	for	Students	Who	Graduate	Early	From	a	Clock-Hour	Program
Under	the	regulations	that	govern	the	treatment	of	
Title	IV	funds	when	a	student	withdraws,	a	student	who	completes	all
the	requirements	for	graduation	from	a	program	before	completing	the	days	or	hours	they	were	scheduled	to	complete	is
not	considered	to	have	withdrawn,	and	no	return	of	Title	IV	funds	calculation	is	required	(see	Volume	5	for	more	detail).
However,	a	school	may	be	required	to	return	a	portion	of	the	Pell	Grant	funds	that	were	awarded	to	a	student	who
successfully	completes	the	requirements	for	graduation	from	a	clock-hour	program	before	completing	the	number	of	clock
hours	that	they	were	scheduled	to	complete.	Note	that	successfully	completed	clock	hours	may	include	a	limited	number
of	clock	hours	for	which	the	student	was	granted	an	excused	absence	if	your	school	has	an	excused	absence	policy	that
meets	the	requirements	described	in	34	CFR	668.4(e).	For	more	information,	see	the	discussion	of	"Excused	absences	in
clock-hour	programs"	in	Volume	3,	Chapter	1.
A	student's	eligibility	to	receive	Title	IV	aid	for	a	clock-hour	program	is	based,	in	part,	on	the	total	number	of	clock	hours
in	the	program.	If	a	school	allows	a	student	to	graduate	from	a	clock-hour	program	without	completing	all	the	originally
established	hours	for	the	program,	the	school	has	effectively	shortened	the	program	length	and	reduced	a	student's	Title
IV	aid	eligibility	for	the	program.	In	this	circumstance,	the	school	must	recalculate	the	student's	Pell	Grant	award	based	on
the	number	of	hours	the	student	completed.	The	school	must	return	to	the	Department	the	difference	between	the
recalculated	award	amount	and	the	Pell	Grant	amount	that	the	student	originally	received.	(For	a	student	who	received	a
Direct	Loan,	the	school	must	also	prorate	the	student's	annual	loan	limit	in	this	situation,	or,	if	the	loan	limit	was	originally
subject	to	proration,	recalculate	the	original	prorated	loan	limit.	See	Volume	8	for	more	information.)
Volume	7,	Chapter	7,	Example	5:	Pell	Recalculation	for	Early	Graduation	From	a	Clock-Hour	Program
Consider	a	student	who	enrolls	in	a	900	clock-hour	program,	with	the	academic	year	defined	as	900	clock	hours
and	26	weeks	of	instructional	time.	The	school	assumes	that	the	student	will	complete	900	clock	hours,	and	the
student9s	Scheduled	Award	is	$7,500,	paid	in	disbursements	of	$3,750	in	each	payment	period	(see	Chapter	1	of
Volume	3	for	guidance	on	determining	payment	periods).
The	school	considers	the	student	to	have	met	the	requirements	for	graduation	from	the	program	after	the	student
has	completed	only	750	of	the	originally	scheduled	900	clock	hours.	As	soon	as	practicable	after	determining	that
the	student	will	meet	the	graduation	requirements,	the	school	must	recalculate	the	student's	Pell	Grant	award	as
if	the	student	had	been	enrolled	in	a	750	clock-hour	program.	Although	the	school	will	recalculate	the	student's
award	using	Formula	4	(as	described	in	Chapter	4),	in	this	circumstance	only	the	number	of	clock	hours	in	the
payment	periods	are	considered.	There	is	no	comparison	of	hours	and	weeks	fractions,	as	is	normally	required
with	Formula	4.
The	school	determines	the	recalculated	award	amount	for	each	payment	period	by	multiplying	the	student's
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