Summary: This letter provides information regarding supplemental funding under the Campus-Based Programs for the 1997-98 award year.
SUBJECT: This letter provides information regarding supplemental 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:
This past July institutions were asked to release any unexpended 1996-97 award year funds for the Federal Perkins Loan, Federal Supplemental Educational Opportunity Grant (FSEOG), and/or Federal Work-Study (FWS) programs to be used for reallocation as 1997-98 award year supplemental allocations.
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). 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 conditions below, and you are not receiving a supplemental allocation for that program, the calculated amount was less than $1,000 for your institution.
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 1997-98 award year;
b) advanced funds to students in the 1985-86 award year;
c) did not receive a 1997-98 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 1997-98 award year;
b) have a cohort default rate below 30%.
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An institution qualifies to receive these reallocated funds if its fair share is greater than its allocation (FSEOG 1997-98 Final Funding Worksheet line 28 greater than line 40).
All of the funds available for distribution for FWS are being reallocated only to institutions that meet the following criteria:
1) indicated that they have spent at least 10% of their total 1996-97 allocations to compensate students employed in community service jobs on line 4 of the
Campus-Based Reallocation Form (E40-4P);
2) requested a supplemental 1997-98 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 1997-98.
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 1996-97 allocation to compensate students employed in community service jobs when we receive your fiscal operations report on or about October 1, 1997.
We do not anticipate that additional funds will become available for 1997-98, 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 any questions regarding these procedures, please contact the appropriate Campus-Based Financial Management Specialist for your state.
Michele L. Selvage, Director
Institutional Financial Management Division
Accounting and Financial Management Service