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( ) This letter provides information on a preliminary estimate of your institution's 1997-98 Federal Work-Study funding. WE ARE SENDING YOU THIS LETTER ALONG WITH THE FISAP EDIT/VERIFICATION MATERIALS FOR 1997-98.

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Summary: This letter provides information on a preliminary estimate of your institution's 1997-98 Federal Work-Study funding. WE ARE SENDING YOU THIS LETTER ALONG WITH THE FISAP EDIT/VERIFICATION MATERIALS FOR 1997-98.


November 1996


CB-96-22


SUMMARY: This letter provides information on a preliminary
estimate of your institution's 1997-98 Federal
Work-Study funding. WE ARE SENDING YOU
THIS LETTER ALONG WITH THE FISAP
EDIT/VERIFICATION MATERIALS FOR 1997-98.

REFERENCE: This letter supplements Chapter 7 of the Federal
Student Financial Aid Handbook for 1996-97.

Dear Financial Aid Administrator:

On September 30, 1996, President Clinton signed the Omnibus
Consolidated Appropriations Act, 1997, (Public Law 104-208) that
increased the Fiscal Year 1997 appropriation to $830 million for the
Federal Work-Study (FWS) Program. This figure is an increase of
$213.5 million over the current funding level of $616.5 million, and
as a result your institution may receive a 1997-98 FWS award
significantly greater than your institution received in the past.

As you may be aware, the President also stated on October 26, 1996,
that at least half of all increases beyond the FY 1996 level (i.e., the
funds received for the 1996-97 award year) would be committed to
community service, with emphasis on providing 100,000 work-study
jobs for reading tutors to help all children read well by the end of the
third grade. To encourage this, the President plans to propose
legislation that would waive employer matching requirements for
FWS students who serve as reading tutors and that would require that
at least half of all increases be committed to community service.

The purpose of this letter is to provide your institution as much time
as possible to do the planning and development necessary to match
and spend any increased FWS allocation for the 1997-98 award year.
The Department also wants to strongly encourage your institution to
expand the FWS job opportunities for community service now,
particularly for reading tutors.

Therefore, in advance of the tentative 1997-98 funding levels notice
that will be issued by February 1, 1997, we have enclosed the results
of a computer-generated simulation of your institution's FWS
funding level for the 1997-98 award year. This estimate is based on
the increased FWS appropriation and the allocation formula in the
law. This preliminary estimate of 1997-98 FWS funding uses the
data that you provided in your Fiscal Operations Report for 1994-95
and Application to Participate for 1996-97 (FISAP) that was
submitted during the Fall 1995 as well as FISAP data provided by
other participating institutions. These FISAP data were the latest
complete information available when this preliminary estimate was
generated. WE DID NOT USE THE DATA ON THE DISKETTE
ENCLOSED IN THIS PACKAGE BECAUSE IT HAS NOT YET
GONE THROUGH THE EDIT PROCESS.

Under the FWS allocation formula, an institution will not receive
more funds than it requests. Since you did not know about the $830
million FWS appropriation when you requested 1997-98 FWS
funding with the submission of your FISAP, the Department
calculated this preliminary estimate to reflect your full potential
eligibility. The estimate is not limited by your actual request.
However, to be considered for your full potential eligibility when the
tentative FWS funding levels and final awards are determined, you
may wish to increase the requested FWS amount reported on your
FISAP (Part II, Section A, Line 4) for 1997-98 as you edit the data
on the diskette we have enclosed with this mailing.

PLEASE NOTE THAT THIS IS ONLY A PRELIMINARY
ESTIMATE OF YOUR FWS FUNDING LEVEL. Your actual
1997-98 funding will differ from this preliminary estimate and, in
some cases, differ significantly. This difference may occur because
the figures you reported in your 1996-97 FISAP, filed in the Fall
1995, and the figures recently submitted in your 1997-98 FISAP are
different, or because the standard expected family contribution
averages for 1996-97 and 1997-98 may differ. This difference may
also occur because of changes made by other institutions to their
data.

We look forward to working with you in the coming months as you
develop a program that expands to include more eligible students and
responds to the President's challenge to have more of them
participate in community service activities, especially as reading
tutors. This effort will support the President's "America Reads"
Challenge, which will mobilize resources to ensure that all children
can read independently by the end of the third grade. Please note
that you may be able to receive even more funding through the FWS
reallocation process if you use at least 10 percent of your total FWS
allocation for students performing community service jobs such as
reading tutors.

We appreciate your assistance and cooperation as we work to inform
FWS eligible students of the opportunities to perform community
service, especially to serve as reading tutors, and encourage FWS
recipients to participate in these activities. If you have questions
regarding your institution's preliminary estimate of 1997-98 FWS
funding, please call the appropriate Campus-Based Financial
Management Specialist identified on the enclosed listing.

Sincerely,



Elizabeth M. Hicks
Deputy Assistant Secretary
for Student Financial Assistance

Enclosure




Institutional Financial Management Division
Campus-Based Programs State Representatives

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

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

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

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
alternate - Rhonda Herbert WA,WV,WI, WY

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

Financial Management Specialist's 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.






















































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Last Modified: 02/23/1998