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(CB-97-04) This letter provides information on the Application for Additional Allocation of Federal Work-Study Funds for Fiscal Year1997.

DCLPublicationDate: 5/1/97
DCLID: CB-97-4
AwardYear:
Summary: This letter provides information on the Application for Additional Allocation of Federal Work-Study Funds for Fiscal Year1997.


May 1997

CB-97-4(LD)


SUMMARY: This letter provides information on the Application for
Additional Allocation of Federal Work-Study Funds for Fiscal Year
1997.

REFERENCE: This letter supplements Chapter 7 of the Federal
Student Financial Aid Handbook.

Dear Financial Aid Administrator:

Due to the substantial increase in the appropriation for the Federal
Work-Study (FWS) Program for Fiscal Year 1997, the Department
of Education (ED) will award an additional allocation of FWS funds
for the 1997-98 award year to institutions where 50 percent or more
of the Pell Grant recipients have either graduated or transferred to a
four-year institution of higher education. This letter invites you to
apply for such an additional allocation of FWS funds.

Section 442(a)(4) of the Higher Education Act of 1965, as amended,
authorizes the Secretary to award up to 10 percent of the amount by
which the appropriation exceeds $700 million to institutions that
have graduated or transferred at least 50 percent of their Pell Grant
recipients. The FY 1997 appropriation of $830 million exceeds this
threshold by $130 million; therefore, ED has available 10 percent of
the $130 million or $13 million, for additional awards to institutions
that meet the statutory criterion. We anticipate that these awards will
range between a minimum of $15,000 and a maximum of $250,000
each and will be distributed by early July.

The Secretary invites you to apply for a portion of these funds by
providing information on your institution's 1990-91 Pell Grant
recipients. To be eligible, your institution needs to certify that at
least 50 percent of your 1990-91 Pell Grant recipients have
graduated or transferred to a four-year institution of higher education
by the date you submit the enclosed certification form. If your
institution can use additional 1997-98 FWS funds and believes that it
qualifies, please complete the enclosed application. The application
should have a postmark date of no later than June 6, 1997, and be
mailed to:

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

The Secretary strongly encourages institutions that request and
receive an additional allocation under this authority to use these
funds for community service activities, including employing FWS
students as reading tutors for children who are in preschool through
elementary school. The Secretary has been very pleased by your
response to our earlier requests to make this voluntary commitment.
It is our hope that this additional allocation will provide you with the
means to strengthen and expand still further your plans for
community service in 1997-98. Please note that you are required to
use at least 5 percent of any additional FWS allocation that you may
receive to pay students employed in community service activities.

Again, we encourage you to submit your application by the postmark
date, June 6, 1997. We are pleased that additional funds will be
available to support the FWS Program at your institution.


Sincerely yours,


Elizabeth M. Hicks
Deputy Assistant Secretary
for Student Financial Assistance

Enclosure


Disclosure of Estimated Burden

According to the Paperwork Reduction Act of 1995, no persons are
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information collection. If you have any comments concerning the
accuracy of the time estimate or suggestions for improving this form,
please write to: U. S. Department of Education, Washington, D. C.
20202-4651. If you have comments or concerns regarding the status
of your individual submission of this form, write directly to:
Institutional Financial Management Division, U. S. Department of
Education, P. O. Box 23781, Washington, D. C. 20202-0781.

OMB No. 1840-0073
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Attachment

Last Modified: 04/30/1997