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(CB-98-04) (CB-98-04) This letter provides information on the Application for Additional Allocation of Federal Work-Study Funds for Fiscal Year 1998.

DCLPublicationDate: 2/1/98
DCLID: CB-98-4
AwardYear:
Summary: This letter provides information on the Application for Additional
Allocation of Federal Work-Study Funds for Fiscal Year 1998.


CB-98-4

February 1998


Summary: This letter provides information on the Application for Additional
Allocation of Federal Work-Study Funds for Fiscal Year 1998.

REFERENCE: This letter supplements Chapter 7 of the Federal
Student Financial Aid Handbook.

Dear Financial Aid Administrator:

We are pleased to announce that the Department of Education (ED)
will again award an additional allocation of Federal Work Study
(FWS) funds for the 1998-99 award year to institutions where
50.0 percent or more of the Pell Grant recipients have either
graduated or transferred to a four-year institution of higher
education. This letter invites you to apply for an additional
allocation of FWS funds.

Section 442(a)(4) of the Higher Education Act of 1965, as amended,
authorizes the Secretary to award up to 10 percent of the amount by
which the appropriation exceeds $700 million to institutions that
have graduated or transferred at least 50.0 percent of their Pell Grant
recipients. The FY 1998 appropriation of $830 million exceeds this
threshold by $130 million; therefore, ED has available 10 percent of
the $130 million or $13 million, for additional awards to institutions
that meet the statutory criterion. We anticipate that these 1998-99
awards will be distributed by mid May.

The Secretary invites you to apply for a portion of these funds by
providing information on your institution's 1991-92 Pell Grant
recipients. To be eligible, your institution needs to certify that at
least 50.0 percent of your 1991-92 Pell Grant recipients have
graduated or transferred to a four-year institution of higher education
by the date you submit the enclosed certification form. If you need
assistance identifying the students at your institution who received
1991-92 Pell Grants, please FAX a request with your telephone
number and Pell ID, to Milton L. Thomas, Jr. at (202) 401-0387,
by March 20, 1998.

If your institution can use the additional 1998-99 FWS funds and
believes that it qualifies, please complete the enclosed application.
The application should have a postmark date of NO LATER THAN
APRIL 3, 1998, and be mailed to:

Milton L. Thomas, Jr.
Institutional Financial Management Division
U.S. Department of Education
P.O. Box 23781
Washington, D.C. 20026-0781

The Secretary strongly encourages institutions that request and
receive the additional allocation under this authority to use these
funds for community service activities, including employing
FWS students as reading tutors for children who are in preschool
through elementary school and their families. The Secretary is
gratified by your response to our earlier requests to make this
voluntary commitment. It is our hope that this additional allocation
will provide you with the means to strengthen and further expand
your plans for community service in the 1998-99 award year. You
should note that you are required to use at least 5 percent of any
additional FWS allocation that you may receive to pay students
employed in community service activities.

Again, we encourage you to submit your application by the postmark
date, APRIL 3, 1998. We are pleased that additional funds will be
available to support the FWS Program at your institution.


Sincerely yours,



Michele Selvage
Director
Institutional Financial Management Division

Enclosure*


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Last Modified: 08/10/1998