Publication Date: May 2, 2008
Subject: Use of State Scholarships and Grants as the Non-Federal Share of FSEOG Awards for the 2007-2008 Award Year
Summary: This letter discusses the use of State grant and scholarship awards for meeting the non-Federal share requirements for the Federal Supplemental Educational Opportunity Grant (FSEOG) Program for the 2007-2008 award year.
Posted on 05-02-2008
Reference: 2007-2008 Federal Student Aid Handbook, Volume 6
The Higher Education Act of 1965, as amended, provides that the Federal share of awards made to students under the Federal Supplemental Educational Opportunity Grant (FSEOG) Program may not exceed 75 percent. The 25 percent non-Federal share of FSEOG awards must come from an institution's own resources, including institutional scholarships and grants, tuition or fee waivers, State scholarships and grants, and foundation or other charitable organization funds. In response to inquiries concerning the use of State scholarships for FSEOG matching purposes, the Department has determined that all State scholarships and grants, except for Leveraging Educational Assistance Partnership (LEAP) and Special Leveraging Educational Assistance Partnership (SLEAP) awards, are eligible funds that may be used to meet the non-Federal share requirement for the FSEOG Program. LEAP and SLEAP awards, for this purpose, are defined as the LEAP and SLEAP Federal allocations plus the minimum required State-matching amounts. The balance of State grant amounts generally are considered non-LEAP and non-SLEAP awards and can be used to meet the FSEOG non-Federal share requirement.
We used the State grant agency reported expected expenditures for State scholarships and grants for the 2007-2008 award year, the 2007-2008 LEAP and SLEAP allocation amounts, and the required matching information to compute the percentages of State scholarships and grants that may be used to provide the non-Federal share of total FSEOG awards for the 2007-2008 award year. A chart showing these percentages is attached. You can apply the appropriate State percentage to the State scholarships and grants your eligible FSEOG recipients received to determine the total amount of State scholarships and grants that may be used to meet the FSEOG non-Federal share requirement. For example, a student recipient of FSEOG receives a grant of $800 from the State of Vermont . The Vermont percentage of 96.85 multiplied by the grant amount of $800 equals $775, which is the portion of the grant that may be used to meet the non-Federal share requirement for a $3,100 FSEOG award ($2,325 is the Federal share of the FSEOG award).
There are some circumstances when an institution may not use the percentages provided in the attached chart. The circumstances are as follows:
For additional information or if you have questions, please contact Greg Gerrans of our staff at 202-377-3304 or the Campus-Based Call Center at 877-801-7168. We trust that this information will be useful in your administration of the FSEOG Program.
Jeff Baker, Director