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(SYS-97-01) (SYS-97-01) This letter provides information on Tentative1997-98 Funding Levels for the Campus-Based Programs

DCLPublicationDate: 1/1/97
DCLID: SYS-97-1
AwardYear:
Summary: This letter provides information on Tentative1997-98 Funding Levels for the Campus-Based Programs


SYS-97-1
(CB list only)

JANUARY 1997


SUMMARY: This letter provides information on Tentative
1997-98 Funding Levels for the Campus-Based
Programs.

REFERENCE: Chapters 5,6,7 and 8 of the Federal Student
Financial Aid Handbook for 1996-97

Dear Financial Aid Administrator:

Enclosed is a notice of your institution's tentative funding
levels for the Federal Perkins Loan, Federal Work-Study (FWS),
and/or Federal Supplemental Educational Opportunity Grant
(FSEOG) programs for the award period July 1, 1997 through
June 30, 1998. These tentative funding levels were determined in
accordance with 1) the Higher Education Act (HEA) of 1965, as
amended; and 2) campus-based program regulations.

PLEASE NOTE THAT THESE ARE TENTATIVE FUNDING
LEVELS ONLY.
We have enclosed computer-generated worksheets that show the
step-by-step calculation of each tentative funding level. Please
review the worksheets carefully. If your institution submitted
FISAP corrections that are not included on the worksheets, please
notify your Campus-Based Financial Management Specialist. Also,
if your institution's base guarantee for any program is too high
(due to disallowed expenditures resulting from an audit, program
review, etc.), you must advise us immediately of the adjusted
expenditures. BE SURE TO RETAIN THE ENCLOSED
EXPLANATION OF THE WORKSHEET BECAUSE WE WILL
NOT PROVIDE ANOTHER COPY WHEN YOUR FINAL
ALLOCATION WORKSHEETS ARE ISSUED IN LATE
MARCH 1997.

REDUCED ALLOCATIONS

In accordance with the HEA sections 413D(e)(2), 442(e)(2), and
462(j)(4), if an institution returns more than 10 percent of its
Federal Perkins Loan, FWS, or FSEOG allocation for an award year,
the allocation for the next fiscal year for that program will be
reduced by the dollar amount returned. The law also provides
that the Secretary may waive this requirement if its enforcement
would be contrary to the interest of the affected campus-based
program.

The enclosed worksheets show whether your institution's
allocation for a program was reduced by the amount of 1995-96
underutilized funds. If one or more of your program allocations
were reduced and you believe that there were extenuating
circumstances unique to 1995-96 that prevented your institution
from spending these funds, you may request a waiver of the
reduction.

To request a waiver, please submit a written explanation of the
circumstances along with supporting documentation. The waiver
request must be signed by an appropriate institutional official
and above the signature the official must include the statement:
"I certify that the information the institution provided in this
waiver request is true and accurate to the best of my knowledge.
I understand that the information is subject to audit and program
review by representatives of the Secretary of Education." The
request must be postmarked by February 14, 1997 and sent to:

[[Please note that the date, February 14, 1997, was corrected in
an errata sheet mailed with the original "Dear Colleague Letter.]]

Sandra K. Donelson
Institutional Financial Management Division
U.S. Department of Education
P.O. Box 23781
Washington, D.C. 20026-0781

We will notify you of our decision by letter prior to your
receipt of final allocations. Approved waivers will be reflected
in the final allocations which will be mailed in late March.

ADDITIONAL LOCATIONS

An institution was permitted to include data in its 1997-98
Campus-Based Programs application for students enrolled in
additional locations that had not yet received an eligibility
determination by the date the FISAP was submitted to us last
fall. If the institution has not received an eligibility letter
and program participation agreement from the Department prior to
March 3, 1997 that includes eligibility for one or more of these
locations, the institution must submit revised application data
on a diskette or by modem, postmarked no later than
March 10, 1997. The institution must delete all data pertaining
to students enrolled at the ineligible location. The revised
diskette or data must be accompanied by a cover letter informing
your Financial Management Specialist which locations are
ineligible, and must be sent to the following address:

Universal Automation Labs
8300 Colesville Road, Suite 500
Silver Spring, Maryland 20910


ELIGIBILITY AND FINAL ALLOCATION DATA

All applicant institutions are receiving this notice of tentative
1997-98 funding levels. However, to receive a final 1997-98
allocation by April 1, 1997, an institution must be certified to
participate in the Campus-Based Programs. Questions regarding
your institution's eligibility and certification should be
referred to the Initial Participation Branch, telephone
(202) 708-4906.

If you have questions regarding your institution's 1997-98
tentative funding levels, please call the appropriate Campus-Based
Financial Management Specialist identified on the enclosed listing.

Sincerely,



Michele Selvage, Director
Institutional Financial
Management Division


Enclosures:

1. Tentative Funding Level Worksheets
2. Explanation of Worksheets
3. Expected Family Contribution (EFC) Averages
4. Listing of Financial Management Specialists
for the Campus-Based Programs

Attachment A
Attachment B
Attachment C
Attachment D

Last Modified: 12/31/1996