| DCLPublicationDate: 3/1/98 DCLID: CB-98-3 AwardYear: Summary: Information regarding your institution's final authorization letter for funding under the campus- based programs for the 1998-99 award year. March 1998 CB-98-3 SUMMARY: Information regarding your institution's final authorization letter for funding under the campus-based programs for the 1998-99 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, 1998 through June 30, 1999. We have also included the Chief Fiscal Officer copy and ask that you disseminate this document to the appropriate office. The federal funds available for the 1998-99 award year are as follows: PROGRAM AMOUNT FWS $ 830,000,000 FSEOG $ 614,000,000 Federal Perkins Loan $ 135,000,000 Final 1998-99 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 1998-99 funding levels sent to you in February. ALLOCATION REDUCTION DUE TO UNDER USE OF FUNDS 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 13 submission deadline in the Dear Financial Aid Administrator letter (CB-98-1) that accompanied your institution's notification of 1998-99 tentative funding levels, and in the closing date notice published in the Federal Register on December 2, 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 under use of fund 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 new EDCAPS Grant Administration and Payment Systems (GAPS) by July 1, 1998. Payments are to be withdrawn from your grantee account according to the procedures specified in the new Department of Education Payee's Guide. Of the $830,000,000 appropriated for the 1998-99 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 1998-99 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 1998-99 award year. If your institution wants to request an increase in its approved level of expenditure for the 1998-99 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. SPECIAL NOTICE: Beginning with the 1999-2000 Award Year, institutions will be required to submit their FISAP to the Campus- Based contractor via the Department of Education's Title IV Wide Area Network (TIVWAN). The Department will only issue 1999- 2000 Campus-Based authorizations to institutions that apply for participation through TIVWAN. Institutions will use the Edconnect software to send their FISAP information through TIVWAN to the Campus-Based contractor. The data will be processed and returned to the schools' electronic mailbox. You must submit your FISAP via the Title IV WAN in order to place your files in the Campus-Based contractor's electronic mailbox. To participate in TIVWAN you must file a Letter of Application and a Participation Agreement by writing to: Title IV WAN Network Operations Center P.O. Box 30 Iowa City, IA 52244 Telephone: 1-800-615-1189 If you have any questions regarding the enclosed 1998-99 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 Attachment |