Summary: Information regarding your institution's final authorization letter for funding under the campus- based programs for the 1998-99 award year.
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:
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
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
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
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.
Michele Selvage, Director
Institutional Financial Management Division