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(CB-97-14) (CB-97-14) Use of State scholarships and grants as the non-Federal share of Federal Supplemental Educational Opportunity Grant awards.

DCLPublicationDate: 8/1/97
DCLID: CB-97-14
AwardYear:
Summary: Use of State scholarships and grants as the non-Federal share of Federal Supplemental Educational Opportunity Grant awards.


August 1997

CB-97-14


SUBJECT: Use of State scholarships and grants as the non-Federal share of Federal Supplemental Educational Opportunity Grant awards.

REFERENCE: This letter supplements Chapter 8, Section 3 of the Federal Student Financial Aid Handbook.

Dear Colleague:

The Higher Education Act of 1965, as amended, provides that the Federal share of awards under the Federal Supplemental Educational Opportunity Grant (FSEOG) Program may not exceed 75 percent of such awards. The non-Federal share of FSEOG awards shall be made from an institution's own resources, including institutional scholarships and grants, tuition or fee waivers, State scholarships and grants, and foundation or other charitable organization funds. In response to inquiries concerning the use of State scholarships for this purpose, the Department has determined that all State scholarships and grants, except for State Student Incentive Grants (SSIGs), are eligible funds that may be used to meet the non-Federal share requirement. SSIG awards, for this purpose, are defined as the Federal SSIG allocation plus the minimum required State matching amount. The remaining State grant amounts are considered non-SSIGs and therefore can be used to meet the non-Federal share requirement.

On the basis of information furnished by the respective States concerning expected expenditures for State scholarships and grants for the 1997-98 award year and using the 1997-98 SSIG allocation data and required matching information, the Department has computed the percentages of State scholarships and grants that may be used by institutions to provide the non-Federal share of total FSEOG awards for the 1997-98 award year. A chart showing these percentages is enclosed. Each institution can apply the appropriate State
percentage to the State scholarships and grants its students receive to determine the total amount of State scholarships and grants that may be used to meet the
FSEOG non-Federal share requirement. For example, a student receives a grant





Page 2 - Dear Colleague


of $ 600 from the State of Wisconsin. The Wisconsin percentage of 95.80 multiplied by the grant equals $ 575, which is the portion of the grant that may be used to meet the non-Federal share requirement for a $ 2,300 FSEOG award ($ 1,725 is the Federal share of the FSEOG award).

As a variance from use of the indicated percentages, if an institution has specific knowledge that a State scholarship or grant - irrespective of its name - is considered to be the required State matching portion of an SSIG, that scholarship or grant may not be used to meet the FSEOG non-Federal share. Also, if an institution has documented knowledge that a State scholarship or grant is not comprised of SSIG monies (Federal or State), 100 percent of the scholarship or grant may be used as the FSEOG non-Federal share.

For additional information or if you have questions, please contact Nancy Adams in our Policy Development Division on (202) 708-8242. We trust that this information will be useful in your administration of the FSEOG Program.


Sincerely,



Elizabeth M. Hicks
Deputy Assistant Secretary
Student Financial Assistance Programs

Enclosure
PERCENTAGES OF STATE SCHOLARSHIPS AND GRANTS THAT MAY BE USED AS THE NON-FEDERAL SHARE OF FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT AWARDS FOR THE 1997-98 AWARD YEAR




ALABAMA 86.23 NEVADA 97.17
ALASKA 89.60 NEW HAMPSHIRE 65.88
ARIZONA 13.19 NEW JERSEY 97.98
ARKANSAS 96.01 NEW MEXICO 97.79
CALIFORNIA 94.23 NEW YORK 98.00
COLORADO 97.42 NORTH CAROLINA 97.98
CONNECTICUT 93.70 NORTH DAKOTA 89.29
DELAWARE 80.00 OHIO 97.10
D.C 17.99 OKLAHOMA 94.34
FLORIDA 96.68 OREGON 91.05
GEORGIA 100 * PENNSYLVANIA 98.19
HAWAII 93.67 RHODE ISLAND 93.83
IDAHO 83.10 SOUTH CAROLINA 94.71
ILLINOIS 98.16 SOUTH DAKOTA 100 *
INDIANA 97.77 TENNESSEE 89.26
IOWA 97.65 TEXAS 85.40
KANSAS 90.33 UTAH 96.18
KENTUCKY 95.56 VERMONT 97.88
LOUISIANA 92.61 VIRGINIA 97.56
MAINE 93.26 WASHINGTON 97.22
MARYLAND 95.77 WEST VIRGINIA 93.08
MASSACHUSETTS 94.01 WISCONSIN 95.80
MICHIGAN 96.21 WYOMING 11.35
MINNESOTA 98.11 AMERICAN SAMOA **
MISSISSIPPI 98.78 GUAM 99.10
MISSOURI 92.49 NORTHERN MARIANAS 99.67
MONTANA 68.69 PUERTO RICO 96.56
NEBRASKA 77.96 VIRGIN ISLANDS 98.72


* Georgia and South Dakota are not participating in the 1997-98 SSIG Program, therefore 100% of their State scholarships and grants can be used as a match.
** As of 8/25/97, American Somoa has not submitted a 1997-98 application to participate in the SSIG Program.

Last Modified: 07/31/1997