2000-2001 Federal Student Aid Handbook in PDF Format

1) On p. 1-2, under the Referral of Fraud Cases paragraph, in the last sentence, remove the phrase "...or to local law enforcement officials".

2) On page 1-9, under Deadlines, second paragraph, the dates in the last two sentences for the latest reception by ED of a FAFSA should be July 2, 2001 and not June 30, 2001.

Volume 1: Student Eligibility

1) In the Introduction, description of a student has been clarified from "a student" to "a full-time student."

2) In chapter 2, on pages 3-46 and 3-47, the formulas under the heading "Nonterm correspondence program-Formula 5A have been revised for clarification. The first formula was changed to reflect proper description of a student and the credit hours they are taking, as well as adding the word "definition" to the program's academic year. In the second formula, the term description has been fixed to reflect eligible correspondence terms, and the word "definition" was also added to the program's academic year.

3) In chapter 2, on pages 3-48, in summarizing formula 5a, references to "clock/credit hours" have been replaced by "credit hours".

4) In chapter, on page 3-50, the existing figures in the example are changed to be the following:

28 weeks instructional time in

$3,050 X combined semesters = $2,846.66

30 weeks instructional time in academic year definition

Ivers would.......$2,846.66 / 2 = $1,423.33

Kevin would receive $1,423 for each of the...

He'd receive an additional $203.34 payment...

Under this calculation, Kevin would receive a total of $3,050 for the award year.

Volume 3: Pell Grants

Under the new campus-based regulations 34 CFR 673.5(c)(4), you may, as an option when packaging aid…

Volume 4: Campus Based Common Provisions

Chapter 2, pg. 4-9

Change sentence: A school must use a promissory note that the Department has approved. In Dear Colleague Letter CB-96-8, dated May 1996, and Dear Colleague Letter CB-93-9, dated July 1993, the Department issued both open-ended and closed-ended approved promissory notes for NDSLs and Perkins Loans.

Add sentences after first paragraph under "Approved Promissory Notes:" If a school uses the July 1993 promissory notes, the school must obtain the borrower's signature for each advance (disbursement) of the loan. If a school uses the May 1996 promissory notes, the school must obtain the borrower's signature only once each award year.

Delete paragraph: If a school uses multiple disbursements on a closed promissory note, the borrower must sign for each advance. If there will be only one disbursement, the borrower's signature at the end of the note is sufficient.

Add sentence: The borrower signs next to the specified amount of the approved loan each time the school awards a new loan. (For July 1993 promissory notes, the borrower must sign the "Schedule of Advances" each time she receives a disbursement.)

Volume 5: Perkins Loans

Ch. 3, pg. 18

Change heading: "Changes in Loan Amount - May 1996 Notes"

Ch. 3, pg. 19

Students studying abroad should sign the disbursement check and mail it back to the institution.

Chapter 3, pg. 5-21

(derived from Income Protection Allowances published in the June 1, 1999 Federal Register)

Chapter 4, pg. 5-31 Graphic

Loans disbursed before July 1, 1993 are eligible for an additional type of hardship deferment, which is separate and different from an economic hardship deferment.

Chapter 5, pg. 5-43

special-education teacher, including teachers of infants, toddlers, children, or youth with disabilities; or (remove asterisk)

Chapter 6, pg. 5-52

Collection costs resulting from rehabilitation. Collection costs charged to the borrower on a rehabilitated loan may not exceed 24% of the unpaid principal and accrued interest as of the date following application of the twelfth payment. Until July 1, 2002, if the actual collection costs exceed 24% of the unpaid principal and accrued interest, the school may charge the fund the remaining costs.

Chapter 7, pg. 5-76

For example, a school is authorized to carry back any portion of its funds allocated for the 2000-2001 award year to pay FWS wages for summer employment between May 1, 2000 and June 30, 2000 (including both those dates).

Volume 6: Federal Work Study

Chapter 4, pg 6-25

This changes Department policy.

Students may also be compensated for a reasonable amount of time to perform ongoing activities (i.e., preparation and evaluation time) necessary to accomplish their jobs.

Chapter 5, pg. 6-31

each student's total FSEOG would consist of 25 percent nonfederal resources and 75 percent federal dollars for the 2001-2002 award year.

When a school calculates its administrative cost allowance for the 2001-2002 award year,

Volume 7: Federal Supplemental Educational Opportunity Grant

Chapter 1, pg. 7-5:

Delete FROM FSEOG PROHIBITED in subheading

Chapter 1, pg. 7-6:

The provisions are discussed in volume 2.

Chapter 1, pg. 7-3: