Summary: Information regarding your institution's final authorization letter for funding under the campus-based programs for the 1996-97 award year.
SUMMARY: Information regarding your institution's final
authorization letter for funding under the campus-
based programs for the 1996-97 award year.
REFERENCE: The Student Financial Aid Handbook, Chapters 5, 6,
7, and 8.
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, 1996 through June 30, 1997. We have also included the Chief Executive Officer and Chief Fiscal Officer copies and ask that you disseminate these documents to the appropriate offices.
The federal funds available for the 1996-97 award year are as follows:
FWS $ 615,008,000
FSEOG $ 583,407,000
Federal Perkins Loan $ 93,297,000
Final 1996-97 funding levels have been determined in accordance
with procedures contained in the:
1. Higher Education Act of 1965, as amended (HEA); and
2. Regulations for the campus-based programs (34 CFR Part
674, 34 CFR Part 675, and 34 CFR Part 676).
A copy of the final funding worksheet is provided for each program
which shows the specific steps used to calculate the enclosed
allocations. For a more detailed explanation
Page 2 - Dear Financial Aid Administrator
of the procedures used, refer to the worksheet explanations booklet
which accompanied the tentative 1996-97 funding levels sent to you
- ALLOCATION REDUCTION DUE TO
- The HEA requires that if an institution returned more than 10
percent of its Federal Perkins Loan, FWS, or FSEOG program
allocation for an award year (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 will be reduced in the
succeeding award year 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 March 4 submission deadline in the Dear
Financial Aid Administrator letter (CB-96-3) that accompanied
your institution's notification of 1996-97 tentative funding
levels, and in the closing date notice published in the Federal
Register on February 2, 1996.
- 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 acount in the Department's Payment
Management System (ED PMS) by July 1, 1996. 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 1996-97 award year. If your
Page 3 - Dear Financial Aid Administrator
institution wants to request an increase in its approved level of
expenditure for the 1996-97 award year, 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.
If you have any questions regarding the enclosed 1996-97 funding
levels, please direct them to the appropriate Campus-Based Programs
Financial Management Specialist identified in the attached listing.
Michele Selvage, Director
Institutional Financial Management Division
INSTITUTIONAL FINANCIAL MANAGEMENT DIVISION
FINANCIAL MANAGEMENT SPECIALISTS
Ms. Carolyn Short (202) 708-9184 NE, NV, NH, NJ, NM,
alternate - C. Franklin-Jones NY, PR, UT VI
Mrs. C. Franklin-Jones (202) 708-9183 AL, AK, AZ, CO, CT,
Alternate - Carolyn Short DE, GA, KY, RI, VT
Mrs. Rhonda Herbert (202) 708-9191 AR, CD, HI, TN, TX,
alternate - Jim Porter VA, PI, GU
Mr. Joseph Morris (202) 708-8745 ID, IL, IN, IA, KS, MO
alternate - Alice Payne
Ms. Dinah Nelson (202) 708-8759 FL, MS, OH, PA
alternate - Vicki Roberson
Mrs. Alice Payne (202) 708-9754 CA, SC
alternate - Joseph Morris
Mr. Jim Porter (202) 708-7752 NC, ND, OK, OR, SD,
alternate - Rhonda Herbert WA, WV, WI, WY
Ms. Vicki Roberson (202) 708-7747 LA, ME, MD. MA,
alternate - Dinah Nelson MI, MN, MT
State Representative's Fax (202) 260-0522
If ultimately you are unable to reach your Financial Management
Specialist at the above telephone number, you may call the alternate
identified below the name of your Financial Management Specialist
or call (202) 708-7741.
24 - HOUR COMMUNICATIONS: TO ACCESS OUR 24 -HOUR
INFORMATION SERVICE, CALL (202) 205-0045.