Friday, September 25, 2015

Title IV Pell Grant Eligibility for Private Post-Secondary Institution

In order to maintain Title IV eligibility, an institution needs to be nationally accredited, though it is better to be regionally accredited, and maintain a 10% revenue from non-federal sources. In California, such institution needs to maintain 15% revenue from non-government sources. Therefore, the tuition has a minimum level determined by the threshold of federal loans, Pell Grant, and Cal Grant.

Minimum Tuition in California to Maintain Title IV eligibility = ((Maximum Loan Limit + Pell Grant + Cal Grant) / 0.85) * Proportion of Title IV students + (Maximum Loan / 0.85) * Proportion of Non Title IV Student.

As the proportion of Title IV students (those eligible for Pell Grant) increase, so does the minimum tuition rates to maintain Title IV eligibility.

To ensure Title IV eligibility with a stable price:
Title IV Eligibility Tuition = (Maximum Loan Limit + Pell Grant + Cal Grant) / 0.85.

Maximum Non Profit Tuition in California = (Maximum Loan Limit + Pell Grant + Cal Grant) / 0.85 + Non-Profit Activities.

For upper division students, it is approximately ($7,500 + $6,000 + $9,000) / 0.85 = $26,470.59 + Non-Profit Activities.

Everyone should know that Non-Profit Activities create lots of profit.

Changes to include GI Bill.

For upper division students, it is approximately  ($7,500 + $6,000 + $9,000 + $21,084.89 (GI Bill)) / 0.85 = $51,276.34 + Non-Profit Activities.

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