Summary: This letter provides information regarding your institution's final authorization letter for funding under the campus-based programs for the 1995-96 award year.
SUMMARY: This letter provides information regarding your
institution's final authorization letter for funding under the
campus-based programs for the 1995-96 award year.
Dear Financial Aid Administrator:
Enclosed is your institution's final authorization letter for the
Federal Perkins Loan, Federal Work-Study (FWS) and/or Federal
Supplemental Educational Opportunity Grant (FSEOG) programs for
the award year July 1, 1995 through June 30, 1996.
The federal funds available for the 1995-96 award year are as
Federal Perkins Loan $158,000,000
Final 1995-96 funding levels have been determined in accordance
with procedures contained in the:
1. Higher Education Act of 1965, as amended (HEA);
2. Regulations for the campus-based programs (34 CFR Part
674, 34 CFR Part 675, and 34 CFR Part 676); and
3. Closing date notice, Federal Register, Vol. 60, No. 11,
dated January 18, 1995.
We have included the Chief Executive Officer and Chief Fiscal
Officer copies of the 1995-96 allocation document in this
envelope. We are asking that you disseminate these documents to
the appropriate offices.
We are also providing you with a copy of the final funding
worksheet for each program. The worksheet shows the specific
steps used to calculate the enclosed allocations. For a detailed
explanation of the procedures used to calculate your
institution's allocations, refer to the worksheet explanations
contained in the booklet which accompanied the tentative 1995-96
funding levels sent to you in January.
Allocation Reduction Due to Underutilization
The HEA requires that if an institution returned more than
10 percent of its 1993-94 allocation under the Federal
Perkins Loan, FWS, or FSEOG program (including funds
returned as unexpended during our mid-year reallocation
process and funds returned in the FISAP year-end expenditure
report), the institution's allocation for that program for
the 1995-96 award year will be reduced by the amount
The HEA authorized the Secretary to waive this reduction for
an institution if enforcing the reduction would be contrary
to the interest of the program. We advised all institutions
of the waiver procedures and February 21 submission deadline
in the Dear Financial Aid Administrator letter (CB-95-1)
that accompanied your institution's notification of 1995-96
tentative funding levels, and in the closing date notice
published in the Federal Register on January 18, 1995.
We have reviewed all waiver requests received and have
mailed a separate letter to those institutions showing the
Department's decision regarding their requests. Approved
waivers are reflected by an increased authorization for that
program in the enclosed funding worksheets and final
There is a line item on each funding worksheet to reflect
the increased authorizations for some institutions resulting
from our redistribution of the national total of
underutilization reductions for those institutions that
either did not submit a waiver request or received a waiver
Federal funds for these programs will be deposited into your
institution's grantee account in the Department's Payment
Management System (ED PMS) by July l, 1995. Payments are to be
withdrawn from your grantee account according to the procedures
specified in your ED PMS Recipient's Guide.
If your institution participates in the Federal Perkins Loan
Program, the level of expenditure shown in the enclosed letter
represents the maximum amount the institution is authorized to
expend from its loan fund for the 1995-96 award year. If, during
the 1995-96 award year, the institution wants to request an
increase in its approved level of expenditure because of
increased repayments from borrowers, or for other reasons, you
may request a higher authorized level of expenditure by writing
to the Institutional Review Branch Chief at the regional office
which serves your state. An action to increase the authorized
level of expenditure will not result in any increase to the
Federal capital contribution allocation.
FWS Community Service
Section 443 (b) (2) (A) of the HEA requires an institution
to use at least 5 percent of the sum of its initial and
supplemental FWS allocations for the 1995-96 award year as
the Federal share of earned compensation for students
employed in community service jobs. This requirement can be
waived by the Secretary if enforcing it would create a
hardship for students at the institution. Later this year,
we will provide all institutions that participate in the FWS
Program with procedures for requesting a waiver of this
requirement for the 1995-96 award period.
I strongly encourage you to use FWS federal funds to employ
students in community service work beyond the minimum
legislative requirement. This is an excellent opportunity
for your institution to increase its investment in the
community you serve.
If you have any questions regarding the enclosed 1995-96 funding
levels, please direct them to the appropriate Campus-Based
Programs State Representative identified in the attached listing.
William L. Moran
Director, Student Financial