Is the School Required To Charge Books, Course Materials, Equipment, and Supplies For PEPs Participants?

No. However, to avoid situations where allowable costs are not included in the cost of the attendance (COA), schools must include books, course materials, equipment, and supplies as part of institutional charges and either provide those materials directly to the individual or include the costs of books and supplies in the individual’s tuition and fees. If for some reason a credit balance is created, the school must return the Federal Pell Grant funds associated with the credit balance to the U.S. Department of Education (ED), and it will be credited to the student's remaining Pell eligibility.

Schools that include the cost of books and supplies in the individual’s tuition and fees, must comply with the requirements under 34 CFR 668.164(c)(2) and maintain an arrangement with a book publisher or other entity that enables it to make those books or supplies available to students below competitive market rates and ensure that you provide a way for students to obtain those books and supplies by the seventh day of a payment period.

Reference PEP-Q9/A9 in ED's Prison Education Programs Questions and Answers.