Changes	in	LEU
A	student9s	LEU	changes	whenever	they	receive	a	Pell	Grant	disbursement	and	may	change	any	time	a	student9s
Scheduled	Award	is	adjusted	(up	or	down).	It	may	also	change	through	an	LEU	adjustment	based	on	an	LEU	Dispute,
Closed	School	Restoration,	Restoration	for	Eligible	Loan	Discharge,	or	other	adjustment	type	deemed	necessary	by	the
Department.
A	student9s	Pell	Grant	LEU	can	limit	the	student9s	Pell	Grant	eligibility	for	an	award	year.	For	example,	since	the	maximum
LEU	is	600%,	if	a	student9s	Pell	Grant	award	originally	was	calculated	based	on	an	LEU	of	550%,	then	that	student9s	award
would	be	limited	to	50%	of	the	Scheduled	Award.	A	change	to	a	disbursement	in	the	current	or	previous	award	year	may
alter	a	student9s	LEU.	For	details	on	LEU	limitations,	see	the	Pell	Grant	Lifetime	Eligibility	Used	guidance	earlier	in	this
chapter.
When	a	school	becomes	aware	that	a	student9s	LEU	has	changed,	it	should	determine	whether	the	adjustment	affects	the
student9s	eligibility	for	a	Pell	Grant	in	the	current	or	most	recently	completed	award	year.
If	the	student	becomes	eligible	for	additional	Pell	Grant	funds	due	to	a	change	to	the	student9s	LEU,	the	school	must	make
a	correction	to	the	student9s	award	and	make	any	disbursements	of	Pell	Grant	funds	for	which	the	student	is	now	eligible
and	that	the	school	is	permitted	to	make	under	the	late	and	retroactive	disbursement	requirements	(for	more	detail	on
disbursement	requirements	and	timing,	see	
Volume	4,	Chapter	2).
Minimum	Pell	Grant	and	LEU
Under	HEA	section	401(a)(2)(F),	the	minimum	award	is	set	at	10%	of	the	maximum	award	appropriated	each	year,
rounded	to	the	nearest	$5.	There	is,	however,	no	de	minimis	award	amount	for	purposes	of	determining	a	student9s	award
because	of	the	600%	LEU	limitation.	Therefore,	an	otherwise	eligible	student	with	even	a	very	small	remaining	LEU	is
eligible	to	receive	the	calculated	amount	of	the	Pell	Grant,	up	to	the	LEU.
Pell	LEU	Restoration
In	2017,	following	several	cases	of	closed	schools,	the	Department	began	restoring	Federal	Pell	Grant	eligibility	for	Pell
Grant	recipients	who	were	unable	to	complete	their	course	of	study	due	to	the	closing	of	a	school.	This	process	is	known
as	<Pell	LEU	Restoration	for	Closed	Schools=.
Dear	Colleague	Letter	GEN-14-07
Dear	Colleague	Letter	GEN-14-17
Volume	7,	Chapter	8,	Example	1:	Minimum	Pell	Grant	and	LEU
A	full-time	student	with	a	Scheduled	Award	equal	to	$7,500	with	a	LEU	of	599.500%	would	be	eligible	for	the
remaining	0.500%	which	is	$37.50	(if	your	school	only	disburses	in	whole	dollars,	this	amount	must	be	truncated
to	$37,	because	$38	would	exceed	the	student9s	LEU).
Pell	LEU	Restoration	for	Closed	Schools
Electronic	Announcements	posted:
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