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(CB-96-19) This letter provides information regarding supplemental funding under the campus-based programs for the 1996-97 award year.

DCLPublicationDate: 9/1/96
DCLID: CB-96-19
AwardYear:
Summary: This letter provides information regarding supplemental funding under the campus-based programs for the 1996-97 award year.


September, 1996
CB-96-19

SUBJECT: This letter provides information regarding supplemental
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:

This past June institutions were asked to release any unexpended
1995-96 award year funds for the Federal Perkins Loan, Federal
Work-Study (FWS), and/or Federal Supplemental Educational
Opportunity Grant (FSEOG) programs to be used for reallocation as
1996-97 award year supplemental allocations. If your institution
qualifies to receive a supplemental allocation under one or more of
the criteria listed below, a supplemental allocation letter is enclosed.

Criteria for the distribution of these funds have been established in
accordance with the authority contained in the Higher Education Act
of 1965, as amended, Sections 462(j), 442(e), and 413D(e).

FEDERAL PERKINS LOAN

We are distributing the Federal Perkins Loan reallocation funds to
institutions in the following manner:

(1) Reallocate 80% of funds available to eligible
institutions with a 1985-86 base year guarantee. In
order to qualify to receive these reallocated funds an
institution must meet the following criteria:

a) requested a Federal Perkins Loan Program FCC for
the 1996-97 award year;
b) advanced funds to students in the 1985-86 award year;
c) did not receive a 1996-97 award allocation; and
d) have a cohort default rate below 30%.

(2) Reallocate 20% of funds available to all institutions
with a fair share shortfall that meet the following criteria:

a) requested a Federal Perkins Loan Program FCC for
the 1996-97 award year; and
b) have a cohort default rate below 30%.

FEDERAL WORK-STUDY (FWS)

All of the funds available for distribution for FWS are being
reallocated only to institutions that meet the following criteria:

1) have indicated that they have spent at least 10% of
their total 1995-96 allocation to compensate students
employed in community service jobs on line 4 of the
E40-4P form;

2) have requested a supplemental 1996-97 FWS allocation on
line 5 of the E40-4P form to compensate students employed
in community service jobs; and

3) have a remaining fair share shortfall for 1996-97.

If your institution has received additional FWS funds based on the
above criteria and your institution is not entitled to these additional
funds, they will be deobligated by the Department. The Department
of Education will verify that your institution did spend at least 10%
of your total 1995-96 allocation to compensate students employed in
community service jobs when we receive your fiscal operations
report on or about October 1, 1996.

FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY
GRANT (FSEOG)

An institution qualifies to receive these reallocated funds if its fair share
is greater than its allocation (FSEOG 1996-97 Final Funding Worksheet
line 28 greater than line 40).

MINIMUM ALLOCATION

A minimum supplemental allocation of $1,000 has been set for each
program; therefore, if you find that your institution meets one or
more of the above conditions, and you are not receiving a
supplemental allocation for that program, the calculated amount was
less than $1,000 for your institution.

We do not anticipate that additional funds will become available for
1996-97, so we ask that you do not submit any requests for
additional supplemental funds.

Thank you for your continued participation in our Campus-Based
programs. If you have questions regarding these procedures,
please contact the appropriate Campus-Based Financial Management
Specialist for your state.

Sincerely,


Michele L. Selvage
Director, Institutional Financial
Management Division
Accounting and Financial Management Service

Enclosure(s)

INSTITUTIONAL FINANCIAL MANAGEMENT DIVISION
CAMPUS-BASED PROGRAM
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, DC, 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

Financial Management Specialist FAX (202) 260-0522
(202) 401-0387

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.

Last Modified: 08/31/1996