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. |