| DCLPublicationDate: 8/1/95 DCLID: CB-95-20 AwardYear: Summary: Use of State scholarships and grants as the non-Federal share of Federal Supplemental Educational Opportunity Grant awards. August 1995 CB-95-20 SUBJECT: Use of State scholarships and grants as the non-Federal share of Federal Supplemental Educational Opportunity Grant awards. REFERENCE: This letter supplements Chapter 8, Section 3 of the Federal Student Financial Aid Handbook. Dear Colleague: The Higher Education Act of 1965, as amended, provides that the Federal share of awards under the Federal Supplemental Educational Opportunity Grant (FSEOG) Program may not exceed 75 percent of such awards. The non-Federal share of FSEOG awards shall be made from an institution's own resources, including institutional scholarships and grants, tuition or fee waivers, State scholarships and grants, and foundation or other charitable organization funds. In response to inquiries concerning the use of State scholarships for this purpose, the Department has determined that all State scholarships and grants, except for State Student Incentive Grants (SSIGs), are eligible funds that may be used to meet the non-Federal share requirement. SSIG awards, for this purpose, are defined as the Federal SSIG allocation plus the minimum required State matching amount. The remaining State grant amounts are considered non-SSIGs and therefore can be used to meet the non-Federal share requirement. On the basis of information furnished by the respective States concerning expected expenditures for State scholarships and grants for the 1995-96 award year and using the 1995-96 SSIG allocation data and required matching information, the Department has computed the percentages of State scholarships and grants which may be used by institutions to provide the non-Federal share of total FSEOG awards for the 1995-96 award year. A chart showing these percentages is enclosed. Each institution can apply the appropriate State percentage to the State scholarships and grants its students receive to determine the total amount of State scholarships and grants that may be used to meet the FSEOG non-Federal share requirement. For example, a student receives a grant of $575 from the State of Arkansas. The Arkansas percentage of 95.65 Page 2 - Dear Colleague multiplied by the grant equals $550, which is the portion of the grant that may be used to meet the non-Federal share requirement for a $2,200 FSEOG award ($1,650 is the Federal share of the FSEOG award). As a variance from use of the indicated percentages, if an institution has specific knowledge that a State scholarship or grant - irrespective of its name - is considered to be the required State matching portion of an SSIG, that scholarship or grant may not be used to meet the FSEOG non-Federal share. Also, if an institution has documented knowledge that a State scholarship or grant is not comprised of SSIG monies (Federal or State), 100 percent of the scholarship or grant may be used as the FSEOG non-Federal share. For additional information or if you have questions, please contact Nancy Adams in our Policy Development Division, on (202) 708-4690. We trust that this information will be useful in your administration of the FSEOG Program. Sincerely, Elizabeth M. Hicks Deputy Assistant Secretary for Student Financial Assistance Enclosure PERCENTAGES OF STATE SCHOLARSHIPS AND GRANTS THAT MAY BE USED AS THE NON-FEDERAL SHARE OF FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT AWARDS FOR THE 1995-96 AWARD YEAR ALABAMA 80.55 NEVADA 96.64 ALASKA 90.76 NEW HAMPSHIRE 61.78 ARIZONA 6.20 NEW JERSEY 97.14 ARKANSAS 95.65 NEW MEXICO 97.44 CALIFORNIA 92.11 NEW YORK 98.15 COLORADO 96.45 NORTH CAROLINA 96.55 CONNECTICUT 92.20 NORTH DAKOTA 83.99 DELAWARE 76.84 OHIO 96.25 D.C. 8.41 OKLAHOMA 92.25 FLORIDA 95.38 OREGON 88.01 GEORGIA 98.21 PENNSYLVANIA 97.79 HAWAII 93.38 RHODE ISLAND 92.27 IDAHO 80.26 SOUTH CAROLINA 92.49 ILLINOIS 97.62 SOUTH DAKOTA 41.29 INDIANA 96.37 TENNESSEE 88.07 IOWA 96.57 TEXAS 75.89 KANSAS 88.86 UTAH 94.58 KENTUCKY 94.48 VERMONT 97.34 LOUISIANA 90.91 VIRGINIA 97.00 MAINE 90.88 WASHINGTON 96.03 MARYLAND 94.18 WEST VIRGINIA 88.89 MASSACHUSETTS 92.76 WISCONSIN 95.06 MICHIGAN 95.39 WYOMING 2.87 MINNESOTA 97.77 GUAM 100.00 MISSISSIPPI 98.57 NORTHERN MARIANAS 100.00 MISSOURI 89.43 PUERTO RICO 94.20 MONTANA 60.96 AMERICAN SAMOA * NEBRASKA 65.84 TRUST TERRITORY 100.00 VIRGIN ISLANDS 100.00 * As of 7/31/95, we do not have an approved 1995-96 SSIG Application from American Samoa. |