Maintained for Historical Purposes

This resource is being maintained for historical purposes only and is not currently applicable.

(CB-97-02) Information regarding your institution's final authorization letter for funding under the campus-based programs for the 1997-98 award year.

DCLPublicationDate: 3/1/97
DCLID: CB-97-2
AwardYear:
Summary: Information regarding your institution's final authorization letter for funding under the campus-based programs for the 1997-98 award year.


MARCH 1997
CB-97-2


SUMMARY: Information regarding your institution's final
authorization letter for funding under the campus-based
programs for the 1997-98 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, 1997 through June 30, 1998. 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 1997-98 award year are as
follows:

Program
Amount

FWS
$ 830,000,000

FSEOG
$ 583,407,000

Federal Perkins Loan
$ 158,000,000

Final 1997-98 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 of the
procedures used, refer to the worksheet explanations
booklet which accompanied the tentative 1997-98 funding levels
sent to you in February.


Allocation Reduction Due to Underutilization

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 February 14 submission deadline
in the Dear Financial Aid Administrator letter (SYS-97-1)
that accompanied your institution's notification of 1997-98
tentative funding levels, and in the closing date notice
published in the Federal Register on January 13, 1997.

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 posted into your
institution's grantee account in the Department's Payment
Management System (ED PMS) by July 1, 1997. Payments are to be
withdrawn from your grantee account according to the procedures
specified in your ED PMS Recipient's Guide.

Of the $830,000,000 appropriated for the 1997-98 Federal Work-
Study Program, $1,500,000 has been earmarked for Work College
participation. An additional $13,000,000 will be allocated to
institutions that graduate or transfer 50% or more of their Pell
Grant recipients, as provided for in Section 442(a)(4) of the
Higher Education Act of 1965, as amended. More information about
this supplemental FWS allocation will be forwarded to
institutions in the near future. Please note that $815,500,000
of the 1997-98 FWS appropriation has been allocated according to
the standard procedure outlined in the final funding worksheet.

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 1997-98 award year. If your
institution wants to request an increase in its approved level of
expenditure for the 1997-98 award year, you may request a higher
authorized level of expenditure by writing to the Area Case
Director 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 1997-98 funding
levels, please direct them to the appropriate Campus-Based
Programs Financial Management Specialist identified in the
attached listing.

Sincerely,


Michele Selvage, Director
Institutional Financial Management Division


Enclosures

INSTITUTIONAL FINANCIAL MANAGEMENT DIVISION
CAMPUS-BASED PROGRAMS
FINANCIAL MANAGEMENT SPECIALISTS



Mrs. C. Franklin-Jones (202) 708-9183
AL, AK, AZ, CO, CT, DE, GA KY, RI, VT
alternate - Carolyn Short

Mrs. Rhonda Herbert (202) 708-9191
AR, DC, HI, TN, TX, VA, PI, GU
alternate - Jim Porter

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, WA, WV, WI, WY
alternate - Rhonda Herbert

Ms. Vicki Roberson (202) 708-7747
LA, ME, MD, MA, MI, MN, MT
alternate - Dinah Nelson

Ms. Carolyn Short (202) 708-9184
NE, NV, NH, NJ, NM, NY, PR, UT, VI
alternate - C. Franklin-Jones

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: 02/28/1997