In	2021,	the	FAFSA	Simplification	Act	codified	Pell	LEU	Restoration	for	Closed	Schools	into	law	and	expanded	the
restoration	of	Pell	Grant	eligibility	to	include	students	who	received	a	closed	school,	false	certification,	identity	theft,	or
borrower	defense	loan	discharge.	This	expanded	authority	is	known	as	<Pell	LEU	Restoration	for	Eligible	Loan	Discharge=.
The	Department	implemented	changes	in	the	COD	System	to	accommodate	this	new	authority	on	July	30,	2023.
A	closed	school	may	be	considered	for	the	Pell	LEU	Restoration	for	Closed	Schools	process	if	all	the	following	are	true:
The	school's	main	location	is	officially	closed	with	the	Department;
The	school	closed	after	1994	(i.e.,	1995	to	present);
All	final	disbursements	have	been	submitted	to	the	COD	system	and	accepted	by	the	Department;
All	final	enrollment	data	has	been	submitted	to	NSLDS	so	that	the	Department	may	determine	if	students	are	eligible
for	restoration;	and
The	school	has	completed	the	close-out	process	with	the	Department.
A	student	may	be	eligible	for	restoration	under	the	Pell	LEU	Restoration	for	Closed	Schools	process	if	all	the	following	are
true:
The	student	received	a	Pell	Grant	disbursement	at	an	eligible	closed	school	(see	criteria	for	an	eligible	closed	school
above);
The	student	did	not	complete	their	program	at	the	closed	school;	and
The	student	had	a	valid	enrollment	status	at	the	closed	school	within	two	years	of	the	school9s	closure.
A	student	may	be	eligible	for	restoration	under	the	Pell	LEU	Restoration	for	Eligible	Loan	Discharge	process	if	the	following
are	true:
The	student	received	an	eligible	loan	discharge	on	or	after	July	1,	2017;	and
The	student	received	Pell	Grant	disbursement	for	the	same	OPEID	and	award	year	as	the	discharged	loan.
School	Impact	Due	to	Pell	LEU	Restorations
Schools	do	not	have	to	take	any	action	related	to	either	the	Pell	LEU	Restoration	for	Closed	Schools	or	the	Pell	LEU
Restoration	for	Loan	Discharge	processing.	The	Department	has	modified	the	COD	system	to	restore	Pell	Grant	eligibility
for	affected	students.
However,	if	a	student9s	eligibility	for	Pell	in	the	current	award	year	is	affected	by	an	LEU	adjustment,	the	school	will	be
notified.	Notifications	of	Pell	eligibility	restoration	adjustments	for	students	associated	with	their	school	are	sent	through
multiple	sources:
December	21,	2016
April	3,	2017
October	4,	2017
Pell	LEU	Restoration	for	Eligible	Loan	Discharge
Electronic	Announcement	posted	July	20,	2023
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