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(CB-95-20) Use of State scholarships and grants as the non-Federal share of Federal Supplemental Educational Opportunity Grant awards.

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.

Last Modified: 07/31/1995