Which of the following is not a valid Administrative Cost Allowance (ACA) amount per Pell recipient?

• A. $5
• B. 5%
• C. $10
• D. $15

Answer: (D)

Administrative Cost Allowance is the amount a school can deduct from Pell funds to cover administrative costs of administering the program. The ACA can be a fixed dollar amount per Pell recipient (commonly $5 or $10) or a percentage of the Pell funds disbursed (for example 5%). A per-recipient amount of $15 isn’t permitted under these rules, so it’s not a valid ACA amount. The other options fit because they align with the allowed forms: $5 and $10 are valid fixed-dollar amounts, and 5% is a valid percentage-based ACA.