Methodology for Calculating Allocations, American Rescue Plan Act, Section 314(a)(4) (May 11, 2021)

Summary

U.S. Department of Education methodology, published May 11, 2021, for allocating 1% ($395,845,700) of Higher Education Emergency Relief Fund money under the American Rescue Plan Act to proprietary institutions of higher education, using the formula in section 314(a)(4) of the Coronavirus Response and Relief Supplemental Appropriations Act, 2021. It sets three factors: 75% of the funds by each institution's share of Federal Pell Grant recipients not enrolled exclusively in distance education, 23% by its share of other students not enrolled exclusively in distance education, and 2% by its share of Pell recipients enrolled exclusively in distance education, each split evenly between headcount and full-time equivalent enrollment. It explains how the Department approximated the factors from IPEDS and Pell Grant data, and says schools ineligible as of April 7, 2021 are excluded.

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Issuer: Congressional materials
Document type: Department Of Education Methodology For Calculating Allocations Www Ed Gov Be18D477A1
Case: Department Of Education Methodology For Calculating Allocations Www Ed Gov Be18D477A1

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“Methodology for Calculating Allocations, American Rescue Plan Act, Section 314(a)(4) (May 11, 2021).” Original at www.ed.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/department-of-education-methodology-for-calculating-allocations-www-ed-gov-be18d477a1/, SHA-256 c91e9cf536985ba3184829cf4bf748123906b9b0e752fda7c3c08b285e8ad55f.

Full text

  Methodology for Calculating Allocations Under the American Rescue
   Plan Act of 2021 pursuant to Section 314(a)(4) of the Coronavirus
     Response and Relief Supplemental Appropriations Act, 2021

                                        Published May 11, 2021

Of the funds available for the Higher Education Emergency Relief Fund (HEERF) under the American
Rescue Plan Act (Pub. L. 117-2) (ARP), 1% ($395,845,700) will be awarded to proprietary institutions of
higher education (IHEs), as defined in sections 102(b) of the Higher Education Act of 1965, as amended
(HEA), using the formula established in section 314(a)(4) the Coronavirus Response and Relief
Supplemental Appropriations Act, 2021 (CRRSAA).

The allocations are based on three formula factors:

        (1) 75% of the funds will be awarded to IHEs based on each IHE’s relative share of enrollment of
        Federal Pell Grant recipients who were not enrolled exclusively in distance education courses
        prior to the coronavirus emergency, split evenly between total (i.e., headcount) enrollment and
        full time equivalent (FTE) enrollment;

        (2) 23% of the funds will be awarded to IHEs based on each IHE’s relative share of enrollment of
        students who were not Federal Pell Grant recipients and who were not enrolled exclusively in
        distance education courses prior to the coronavirus emergency, split evenly between total
        enrollment and FTE enrollment; and

        (3) 2% of the funds will be awarded to IHEs based on each IHE’s relative share of enrollment of
        Federal Pell Grant recipients who were enrolled exclusively in distance education courses prior to
        the coronavirus emergency, split evenly between total enrollment and FTE enrollment.

The first and third factors primarily allocate funds based on undergraduate enrollment since Federal Pell
Grant eligibility is limited to undergraduate students who have not earned a baccalaureate degree or a first
professional degree, as well as students in certain postbaccalaureate teacher education programs. The first
factor only includes enrollment of students NOT exclusively enrolled in distance education courses prior
to the qualifying emergency while the third factor ONLY includes enrollment of students exclusively
enrolled in distance education courses prior to the qualifying emergency. The second factor allocates
funds based on undergraduate and graduate enrollment, excluding any students enrolled exclusively in
distance education courses prior to the qualifying emergency.

Because of the limitations of available data preclude calculating precise amounts for the factors listed
above, the U.S. Department of Education (the Department) approximated the factors using the best
available data from ED’s Integrated Postsecondary Education Data System (IPEDS) and Pell Grant
Volume data provided by the Office of Federal Student Aid (FSA).

The first factor was determined as follows: The relative share of undergraduate students awarded Federal
Pell Grants was calculated based on the institution’s share of total Federal Pell Grant recipients as
reported by FSA for the 2018/19 award year. The FTE enrollment of these Federal Pell Grant recipients
was approximated by looking at the ratio in IPEDS between 2018/19 FTE undergraduate enrollment and
2018/19 undergraduate total enrollment. To approximate total and FTE enrollment of Federal Pell Grant
recipients who were not enrolled exclusively in distance education, the estimated total and FTE



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enrollment of Federal Pell Grant recipients was multiplied by the percentage of fall 2019 undergraduate
degree/certificate-seeking students not enrolled exclusively in distance education as reported in IPEDS.
The first factor was weighted evenly between total enrollment and FTE enrollment

The second factor was determined by subtracting the approximated total and FTE enrollment of Federal
Pell Grant recipients (if any) from the total 2018/19 total and FTE enrollment of students as reported in
IPEDS and then multiplying the difference by the percentage of fall 2019 undergraduate, graduate, and
professional students not enrolled exclusively in distance education as reported in IPEDS. Each
institution’s relative share of the resulting enrollment was used to calculate their share of the second
factor. The second factor was weighted evenly between total enrollment and FTE enrollment.

The third factor was determined as follows: The relative share of undergraduate students awarded
Federal Pell Grants was calculated based on the institution’s share of total Federal Pell Grant recipients as
reported by FSA for the 2018/19 award year. The FTE enrollment of these Federal Pell Grant recipients
was approximated by looking at the ratio in IPEDS between 2018/19 FTE undergraduate enrollment and
2018/19 undergraduate total enrollment. To approximate total and FTE enrollment of Federal Pell Grant
recipients who were enrolled exclusively in distance education, the estimated total and FTE enrollment of
Federal Pell Grant recipients was multiplied by the percentage of fall 2019 undergraduate
degree/certificate-seeking students enrolled exclusively in distance education as reported in IPEDS. The
third factor was weighted evenly between total enrollment and FTE enrollment.

Some additional points to note:

    •   The data used to determine distance education participation are based on a fall unduplicated
        enrollment which is different from FTE enrollment and, in the case of the total FTE enrollment,
        also different from FTE enrollment for a 12-month period. The unduplicated enrollment is a
        simple headcount of students enrolled in classes; whereas the FTE enrollment counts part-time
        students in accordance with their enrollment rate.
    •   Allocation amounts were calculated at the 6-digit OPEID.
    •   Some data was adjusted based on available information regarding change of ownership or
        affiliation.
    •   For some IHEs, the approximated FTE enrollment of Federal Pell Grant recipients exceeded the
        total FTE enrollment. For these IHEs, the total non-Pell FTE enrollment was set to 0, making the
        IHE ineligible for the second factor.
    •   The ratio of FTE undergraduate enrollment to undergraduate headcount enrollment was capped at
        100 percent.
    •   Schools that are currently ineligible per the PEPS weekly data extract as of April 7, 2021, or for
        whom IPEDS data was unavailable, are excluded from the allocation table.




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