| DCLPublicationDate: 3/1/95 DCLID: CB-95-4 AwardYear: 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. March 1995 CB-95-4 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 follows: Program Amount FWS $615,008,000 FSEOG $583,407,000 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 unexpended. 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 authorization letter. 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 denial. 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. Sincerely, William L. Moran Director, Student Financial Assistance Programs Enclosures |