The Federal Pell Grant regulations provide for an Administrative Cost Allowance (ACA) payment of $5.00 to each participating school for each student who receives a Pell Grant at that school for an award year. These funds may be used only to defray the costs of administering the Pell Grant, Federal Supplemental Educational Opportunity Grant (SEOG), Federal Work-Study, and Federal Perkins Loan programs.
ACA payment amounts are not included in a school’s Current Funding Level (CFL) but are direct payments made to a school based on its unduplicated student recipient information. A school’s total number of Pell Grant unduplicated recipients, used in the calculation of the ACA payment, includes students with at least one reported and accepted actual disbursement in the Common Origination and Disbursement (COD) System.
USDE began processing the second ACA payments for 2013-2014, as well as the third and final ACA payments for 2012-2013 on August 25, 2014. Using G5, the USDE forwards ACA payments electronically through the Federal Reserve Bank into schools’ bank accounts. Schools will begin to see these payments deposited directly into their bank accounts over the next few weeks.
For more information, including contact information for G5 and COD School Relations, see the following electronic announcements: