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Additional 1997/98 Federal Workstudy Allocations

PublicationDate: 5/2/97
Summary: Additional 1997/98 Federal Workstudy Allocations
Author: OPE - Office of the Assistant Secretary for OPE


To: Financial Aid Administrators

From: Betsy Hicks
Deputy Assistant Secretary
Student Financial Assistance Programs

Subject: Additional 1997/98 Federal Work-Study Allocations

Attached to this message is a "Dear Colleague" letter regarding additional Federal
Work-Study (FWS) allocations for 1997/98. We will mail this letter to you this
weekend. The letter includes a one-page application that you must complete and return
if you wish to request additional 1997/98 Federal Work-Study Funds.

Please note that ED has $13 million in additional FWS funds to allocate. In accordance
with Section 442(a)(4) of the Higher Education Act of 1965, as amended, your
institution is eligible for an additional allocation only if 50% or more of its Pell Grant
recipients have either graduated or transferred to a four-year institution of higher
education.

To receive an additional allocation, you will need to give us information about your
Pell Grant recipients for 1990/91. We selected award year 1990/91 as it allows ample
time for students to graduate at institutions of all types. If you need assistance
determining the students at your institution who received Pell Grants in 1990/91,
please FAX a request to Vince Huntley at 202/401-0387. Please include your
telephone number and Pell ID in the FAX that you send.

We wanted to post the letter on our BBS and on FINAID-L in order to provide you with
as much time as possible to gather the information that you need. Please note that we
have requested that you return the letter to us no later than June 6, 1997 so that we can
make these allocations as shortly thereafter as possible.

I trust this information is helpful to you. Please see the letter below for complete
information about allocation procedures.

*************************************************
May 1997

CB-97-4(LD)


SUMMARY: This letter provides information on the Application for
Additional Allocation of Federal Work-Study Funds for Fiscal Year
1997.

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

Dear Financial Aid Administrator:

Due to the substantial increase in the appropriation for the Federal
Work-Study (FWS) Program for Fiscal Year 1997, the Department
of Education (ED) will award an additional allocation of FWS funds
for the 1997-98 award year to institutions where 50 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 such 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 percent of their Pell Grant
recipients. The FY 1997 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 awards will
range between a minimum of $15,000 and a maximum of $250,000
each and will be distributed by early July.

The Secretary invites you to apply for a portion of these funds by
providing information on your institution's 1990-91 Pell Grant
recipients. To be eligible, your institution needs to certify that at
least 50 percent of your 1990-91 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 your
institution can use additional 1997-98 FWS funds and believes that it
qualifies, please complete the enclosed application. The application
should have a postmark date of no later than June 6, 1997, and be
mailed to:

Vince Huntley
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 an 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. The Secretary has been very pleased 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 expand still further your plans for
community service in 1997-98. Please 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, June 6, 1997. We are pleased that additional funds will be
available to support the FWS Program at your institution.


Sincerely yours,


Elizabeth M. Hicks
Deputy Assistant Secretary
for Student Financial Assistance

Enclosure


Disclosure of Estimated Burden

According to the Paperwork Reduction Act of 1995, no persons are
required to respond to a collection of information unless it displays a
valid OMB control number. The valid OMB control number for this
information collection is 1840-0073. The time required to complete
this information collection is estimated to average .19 hours per
response, including the time to review instructions, search existing
data resources, gather the data needed, and complete and review the
information collection. If you have any comments concerning the
accuracy of the time estimate or suggestions for improving this form,
please write to: U. S. Department of Education, Washington, D. C.
20202-4651. If you have comments or concerns regarding the status
of your individual submission of this form, write directly to:
Institutional Financial Management Division, U. S. Department of
Education, P. O. Box 23781, Washington, D. C. 20202-0781.

OMB No. 1840-0073
Expires 04/30/2000

*********************************************
APPLICATION FOR ADDITIONAL ALLOCATION OF FEDERAL
WORK-STUDY FUNDS FOR FISCAL YEAR 1997 UNDER
SECTION 442 (a)(4) OF THE HIGHER EDUCATION ACT OF
1965, AS AMENDED

Your institution may be eligible to receive an
additional allocation under the Federal Work-Study
Program for fiscal year 1997 (award year July 1,
1997 through June 30, 1998) if:

(1) 50% of the Pell Grant recipients attending
your institution in award year 1990/91 have
graduated, or
(2) a total of 50% of the Pell Grant recipients at
your institution have either graduated or
transferred to a four-year institution of higher
education.

If you wish to apply for an additional allocation,
please provide the data that we request below,
have the authorized official at your institution
sign the document, and return it by June 6, 1997
to:

Vince Huntley, Institutional Financial Management
Division
U.S. Department of Education, P.O. Box 23781,
Washington D.C. 20026-0781

Additional FWS allocation that you wish to
request: $__________

1. Number of Pell Grant recipients enrolled at
your institution in 1990/91: __________

2. Number and percentage of these students who
have graduated: # __________ % _________

Note: If this number represents 50% or more of
the students in step 1, you should not complete
step 3.

3. Number and percentage of these students who
have transferred to a four-year institution.
Do not report any students already reported in 2.

#__________ % _________

Please note: The Secretary encourages recipients of these funds to use
any additional FWS allocation to increase the number of FWS
students who are employed in community service positions,
particularly as reading tutors.

CERTIFICATION: I certify that the information the institution has
provided in this application for an additional Federal Work-Study
allocation under Section 442 (a) (4) of the Higher Education Act of
1965, as amended, is true and accurate to the best of my
knowledge. I understand that this information is subject to
audit and program review by representatives of the Secretary of Education.
Signature: ____________________________________
Date: __________________________
Title: ________________________________________
Campus-Based Serial #: ___________
Name of institution: ________________________________________
Address: _________________________________________________
________________________________________________________
________________________________________________________
OMB No 1840-0073 Expires 04/30/2000

Last Modified: 08/16/1999