Maintained for Historical Purposes

This resource is being maintained for historical purposes only and is not currently applicable.

Campus-Based Programs: Common Elements - Introduction

AwardYear: 1996-1997
EnterChapterNo: 5
EnterChapterTitle: Campus-Based Programs: Common Elements
SectionNumber:
SectionTitle: Introduction
PageNumbers: 1-5



The Federal Perkins Loan, Federal Supplemental Educational
Opportunity Grant (FSEOG), and Federal Work-Study (FWS)
programs are called 'campus-based" programs because each school
is responsible for administering them on its own campus. A school
applies for and receives program funds directly from the U.S.
Department of Education (ED) by submitting an application, the
Fiscal Operations Report and Application to Participate (FISAP),
each award year. (See page 5-3.) The school's financial aid
administrator is responsible for ensuring that eligible students at the
school receive program funds according to the provisions of the law,
the regulations, the Program Participation Agreement signed by both
the Secretary of Education and the school's chief administrative
officer, and other criteria ED may establish.

[[The illustration on page 5-1 is currently unavailable for viewing.
Please reference your paper handbook for additional information.]]

This chapter covers provisions common to the Federal Perkins Loan,
FSEOG, and FWS programs. Chapters 6, 7, and 8 discuss these
programs individually.

[[Work-college definition--34CFR 675.41]]
The Federal Perkins Loan Program provides low-interest, long-term
loans to help needy undergraduate and graduate students. The
FSEOG Program provides grants to undergraduates who demonstrate
exceptional financial need. The FWS Program gives undergraduate
and graduate students the chance to work part-time and encourages
community service employment. A school may use part of its FWS
funds for the Job Location and Development (JLD) Program to
locate and develop jobs, including community service jobs, for
students. JLD is discussed in Chapter 7, Section 6. An eligible school
that meets the regulatory definition of 'work-college" may also use
its FWS and/or Perkins Loan allocation to meet the cost of a Work-
Colleges Program, discussed in Chapter 7.

RECENT CHANGES TO THE CAMPUS-BASED PROGRAMS

[[NEW]]
The following changes to the campus-based programs become
effective July 1, 1996:

- The amount of time a school must retain federal student aid
records has been reduced from five years to three years. Generally,
a school must keep records pertaining to a specific award year for
three years after submitting the FISAP for that award year. There
are two exceptions: one for loan records and one for records of
expenditures questioned in audits or program reviews. Repayment
records for Federal Perkins Loans, National Direct Student Loans
(NDSLs), and Defense Loans (including cancellation and
deferment requests) must be kept for at least three years from the
date the loan is assigned to ED, canceled, or repaid. Records
questioned in an audit or program review must be kept until the
questions are resolved.

[[Maintaining records--34CFR 674.19, 675.19, and 676.19]]
- Prior to the 1996-97 award year, a school was allowed to keep the
required campus-based program records on microforms or in
computer format. Beginning with the 1996-97 award year, a
school may keep the records in one of those formats or on optical
disk or other comparable imaging technology. Also beginning
with the 1996-97 award year, if a school keeps its records in
computer format, the school must maintain the source documents
supporting the computer input in hard copy, microforms, optical
disk, or other comparable imaging technology.

[[Promissory note signature--34CFR 674.16]]
- For the Federal Perkins Loan Program, the promissory note
signature requirements were changed for the 1996-97 award year
and subsequent award years. A Perkins Loan or NDSL borrower
no longer is required to sign for each disbursement. Instead, he or
she can sign just once each award year for all of the expected
disbursements in that award year.

[[Shorter promissory notes]]
- ED has also developed new, shorter Perkins Loan/NDSL
promissory notes for the 1996-97 award year and subsequent
award years. The new notes incorporate the signature requirement
change. An example of these redesigned notes will be sent to
schools as part of a 'Dear Colleague" letter in the summer of 1996.

[[Definition of "making a loan"--34CFR 674.2]]
- The definition of 'making a loan" has been changed for the
Federal Perkins Loan Program. A Perkins Loan or NDSL is now
considered to be made when the borrower has signed the
promissory note for the award year and the school makes the first
disbursement of loan funds under that promissory note for that
award year. Previously, a loan was considered to be made when
the borrower signed for an advance of loan funds and those funds
were disbursed.

- Section 674.31 of the regulations was amended to clarify that a
school must use the Secretary's Perkins Loan/NDSL promissory
notes and that the school may make only nonsubstantive changes
to these notes.

[[34CFR 674.33]]
- A school may now combine the last scheduled Perkins Loan or
NDSL payment with the next-to-last payment if the last payment
is $25 or less.

[[34CFR 674.47]]
- A school may cease collection activity on certain defaulted
Perkins Loan or NDSL accounts and may write off accounts of
less than $5.

[[FWS Program Model Agreement]]
- The FWS Program Model Agreement was removed from
Appendix B of 34CFR 675 and is now included in Chapter 7 of
this handbook.

[[Reporting FWS community service expenditures]]
- FWS community service expenditures for the 1995-96 award year
will be reported on the FISAP instead of on the Campus-Based
Reallocation Form (Form E40-4P) as in previous award years.
This change will take effect on the FISAP schools receive in July
1996, as that FISAP is the one schools will use to report its
1995-96 fiscal operations.

PROGRAM PARTICIPATION AGREEMENT

A school that wants to participate in any SFA Program must sign a
Program Participation Agreement with the Secretary. The agreement
must be signed by the school official legally authorized to assume,
on the school's behalf, the agreement's obligations. (For more
information on this agreement, see Chapter 3, Section 2.)

The agreement provides that the school must use the funds it receives
for a program solely for the purposes specified in the regulations for
that program and that the school must administer each program in
accordance with the HEA, as amended, and the General Provisions
regulations (34CFR 668). See Chapter 3 of this handbook for
information on the General Provisions. Each of the campus-based
programs has additional requirements that are part of the Program
Participation Agreement and that are specific to the individual
program; these requirements are found in 34CFR 674.8, 675.8, and
676.8 and in the HEA. Each program's specific requirements are
discussed in the chapter for that program.

APPLICATION FOR FUNDS

[[Electronic FISAP requirement]]
To receive funds from ED for one or more of the campus-based
programs, a school must submit a FISAP each award year. All
schools are required to file the FISAP data through the electronic
FISAP process (by mailing diskettes, transmitting data by modem, or
mailing a magnetic tape). ED no longer provides or accepts paper
FISAP forms. Thus, a school must use the electronic FISAP process
to be eligible to participate (request/receive a funding allocation) in
the campus-based programs.

[[Deadline for returning FISAP]]
Each July, ED distributes the electronic FISAP packages and
instructions for schools to use in applying for funds for the
subsequent award year. The information reported must be accurate
and verifiable. ED will distribute the materials essential for the
preparation and submission of the 1995-96 Fiscal Operations Report
and 1997-98 Application to Participate to schools in a 'Dear
Colleague" letter in July 1996. The deadline for submitting (mailing
or transmitting) the completed FISAP to ED by means of one of the
electronic procedures listed above is October 1, 1996.

[[Requesting funds for school with pending application to
participate]]
A school that has applied to participate in the campus-based
programs for the first time should submit a FISAP by the deadline
even if the school has not been certified to participate in the
programs. ED will calculate a funding level for the school and put
the funding on 'hold" status until the school has been approved to
participate.

[[FISAP Questions]]
See page 5-18 for information on whom to contact if you have
questions about the FISAP.

ALLOCATION OF FUNDS

ED allocates funds directly to schools according to the statutory
formulas. The allocation (or authorization) for each program is the
amount of funding the school is authorized to receive from ED for an
award year. This amount is based on the allocation formulas in the
law as well as on the funds appropriated by Congress for the
program. A school will not, however, receive an allocation that is in
excess of its request.

[[Notification of allocation]]
ED notifies schools of their final allocation for each campus-based
program in late March each year by sending The Official Notice of
Funding. Later in the year, schools must release any unexpended
funds. (In the summer of 1996, a 'Dear Colleague" letter will be
issued about the release of unexpended 1995-96 allocations.)

[[Reduction in allocation for returning funds]]
If a school returns more than 10% of its allocated funds for a given
award year under any one of the three campus-based programs, ED
will reduce the school's allocation for the second succeeding award
year by the dollar amount returned unless this provision is waived by
ED. For example, if the school returned more than 10% of its 1994-
95 allocation, its 1996-97 allocation was reduced by the dollar
amount returned for 1994-95.

[[Waiver of reduction in allocation]]
ED may waive this provision for a specific school if it finds that
enforcement would be contrary to the interests of the program. ED
considers enforcement to be contrary to the interest of the program
only if the school returned more than 10% of its allocation due to
circumstances that are beyond the school's control and are not
expected to recur. To request a waiver, a school must submit a
written explanation of the circumstances along with supporting
documentation. The request for a waiver for the 1996-97 award year
had to be postmarked by March 4, 1996. (See 'Dear Colleague"
Letter CB-96-3, dated February 1996.) By February 1997, ED will
issue a 'Dear Colleague" letter explaining the process a school must
use to request a waiver for the 1997-98 award year.

[[Supplemental allocation]]
After schools release their unexpended allocations, ED reallocates
the funds to schools that have met the criteria for receiving a
supplemental allocation. Criteria for distributing these funds for each
program are established in accordance with the HEA and the
campus-based program regulations.

CERTIFICATIONS A SCHOOL MUST SUBMIT TO ED

Included in the FISAP package ED distributes to schools annually is
ED Form 80-0013, Certifications Regarding Lobbying; Debarment,
Suspension, and Other Responsibility Matters; and Drug-Free
Workplace Requirements and Standard Form LLL, Disclosure of
Lobbying Activities. To participate in the campus-based programs
each award year, a school's chief executive officer, or another person
who has the authority to sign on behalf of the entire school, is
required to complete, sign, date, and submit (mail or transmit) to ED
the above certification forms with the school's completed FISAP by
the established deadline.

A detailed discussion of the certification requirements is in
Chapter 3, Section 2 of this handbook.