Posted Date: March 31, 2009
Author: William Leith, Service Director, Program Management, Federal Student Aid
Subject: 2009-2010 Final Funding Authorizations for the Campus-Based Programs
The posting of tentative 2009-2010 funding levels for the Campus-Based programs was announced on January 23, 2009 in an Electronic Announcement dated 01/23/2009. Final funding worksheets and the 2009-2010 Statement of Account for each of the Campus-Based programs will be posted to the eCampus-Based (eCB) Web site no later than April 1, 2009.
The final funding authorization for each Campus-Based program is the amount of funding the school is authorized to receive from the Department for the 2009-2010 Award Year. A school's 2009-2010 final funding authorization for each Campus-Based program is based on the applicable statutory formula and on the amount of funds appropriated by Congress for that program. A school will not receive a 2009-2010 final funding authorization for a Campus-Based program that is in excess of its request for funds made on the Fiscal Operations Report for 2007-2008 and Application to Participate for 2009-2010 (FISAP) that the school previously submitted to the Department.
The Omnibus Appropriations Act, 2009 (P.L. 111-8) appropriated funds for the Federal Work-Study (FWS) and Federal Supplemental Educational Opportunity Grant (FSEOG) programs to be allocated to schools for the 2009-2010 Award Year. Also, in response to the major economic crisis facing this country, the President and Congress included an additional $200 million for the FWS Program in the recently enacted American Recovery and Reinvestment Act of 2009 (P.L. 111-5). The additional FWS funds are one part of the effort to increase the affordability of postsecondary education by increasing the number of FWS jobs or allowing students to work more hours in existing jobs.
Note that there will be several transactions on a school's 2009-2010 Statement of Account for FWS, the total of which will be the school's final FWS award. The purpose of these transactions is to identify the portion of the school's 2009-2010 FWS award associated with the American Recovery and Reinvestment Act. The total final award amount will be reflected in the school's G5 account for drawdown purposes.
2009-2010 FWS and FSEOG awards will be available for drawdown in G5 beginning on July 1, 2009.
The total 2009-2010 Federal funds available for allocation to schools under the FWS, FSEOG, and Federal Perkins Loan (Perkins Loan) programs are as follows:
|Program||Total Federal Funds Available for Allocations to Schools|
|FWS||$1,180,492,000 (Includes the extra $200 million from P.L. 111-5)|
|Perkins Loan||$ 0|
The questions and answers that follow provide important information related to the final funding authorizations.
QUESTIONS AND ANSWERS
Q1: How are the Campus-Based awards for a school determined?
A1: A school's final funding levels for each of the Campus-Based programs are determined in accordance with provisions of the Higher Education Act of 1965, as amended (HEA), and by the implementing regulations at 34 CFR Part 673. The final funding worksheets posted on the eCB Web site will show the derived figures used in calculating the school's 2009-2010 Campus-Based allocations. See Q&A #4 that explains how to access 2009-2010 Campus-Based allocations information posted on the eCB Web site.
Q2: If a school returned more than 10 percent of its 2007-2008 allocation for one of the Campus-Based programs, will it affect the school's 2009-2010 allocation?
A2: As required by the HEA, unless a waiver had been granted, if a school returns more than 10 percent of its Perkins Loan, FWS, or FSEOG program allocation for an award year, the school's allocation for that program in the second succeeding award year will be reduced by the amount returned. Thus, underutilization of 2007-2008 funds could impact a school's allocation of 2009-2010 funds.
We accepted requests for a waiver of any 2009-2010 Award Year penalty for the underuse of 2007-2008 Award Year funds with the initial submission of the Fiscal Operations Report for 2007-2008 and Application to Participate for 2009-2010 (FISAP) or with any FISAP edit submissions received through the February 13, 2009 waiver request deadline. We have reviewed all of the waiver requests we received, notified the Financial Aid Administrators at the requesting schools of our decisions, and posted the decision letters to the eCB Web site. Any school that underutilized its 2007-2008 allocation by more than 10 percent and did not receive approval of a waiver request will see an adjustment in the applicable final funding worksheet on the line labeled "Allocation Reduction."
Q3: Will there be additional Campus-Based funds available for the 2009-2010 Award Year?
A3: All of the Federal Campus-Based funds available for the 2009-2010 Award Year have been allocated in the final award process. However, a school that is located in a county that was impacted by a major 2008 natural disaster as declared by the President, may qualify for supplemental 2009-2010 Campus-Based funds that may be available from funds not spent by institutions from 2008-2009 allocations. Specific information on the reallocation process will be provided in subsequent communications.
Q4: How will a school be notified of 2009-2010 Campus-Based allocations?
A4: We will notify a school by e-mail after its 2009-2010 Campus-Based allocation information has been posted to the eCB Web site. We will send this e-mail to the school's Financial Aid Administrator, as provided in the school's most recently submitted FISAP or as updated via the "Contact Info" page on the eCB Web site. Following receipt of this e-mail, the school can access its 2009-2010 Campus-Based allocation information as follows:
- Awards for each Campus-Based program in which the school participates will be reflected in the school's 2009-2010 Statement of Account on the eCB Web site. To access the Statement of Account, log in to the eCB Web site, select the "Self-Service" link from the top navigation bar, and scroll to the "Campus-Based Notifications for All Available Award Years" section. Then, scroll to the "Statement of Account" bullet and select the "2009-2010" link next to it.
- Final funding worksheets for each Campus-Based program in which the school participates will be posted on the eCB Web site. To access the final funding worksheets, log in to the eCB Web site, select the "Self-Service" link from the top navigation bar, and scroll to the "Campus-Based Notifications for All Available Award Years" section. Then, scroll to the "Final Awards" bullet and select the "2009-2010" link next to it.
Note: For a line-by-line explanation of the worksheets, refer to the "Explanation of Worksheets" attachment to Electronic Announcement dated 01/23/2009.
Q5: When will 2009-2010 Campus-Based funds be available to a school?
A5: 2009-2010 funds for the Campus-Based programs will be posted to a school's grantee account in G5 (formerly GAPS) by July 1, 2009.
Q6: What is the purpose of the "Total Authorized Level of Expenditure" or "LOE" for the Federal Perkins Loan Program as shown on the final funding documentation?
A6: The level of expenditure shown on a school's Statement of Account and Perkins Loan final funding worksheet represents the maximum amount the school is authorized to expend from its Perkins Loan fund for the 2009-2010 Award Year. If the school wants to request an increase in its level of expenditure, it must contact the School Participation Team at the Department of Education's regional office that serves the state in which the school is located. School Participation Team contact information is available at http://ifap.ed.gov/ifap/helpContactInformationDetailedList.jsp?contactname=School%20Participation%20Teams.
For additional information about 2009-2010 Campus-Based allocations, contact the Campus-Based Call Center at 877/801-7168. Customer service representatives are available Monday through Friday from 8:00 A.M. until 8:00 P.M. (ET). You may also e-mail CBFOB@ed.gov.