Maintained for Historical Purposes

This resource is being maintained for historical purposes only and is not currently applicable.

Student Financial Aid Programs

PublicationDate: 7/1/95
ChapterNumber: 1
ChapterTitle: Student Financial Aid Programs
SectionNumber: 3
SectionTitle: The Campus-Based Programs
PageNumbers: 9-10


1.3 The Campus-Based Programs

Three financial aid programs, the Federal Supplemental Educational
Opportunity Grant (FSEOG), Federal Work-Study (FWS), and
Federal Perkins Loan Programs, are referred to as campus-based
programs because ED allocates these funds to participating
institutions that then manage the programs and award funds to
students on behalf of ED. The funds are awarded to eligible students
by financial aid administrators in accordance with federal
regulations. Students must file a FAFSA each year to apply for these
funds. Each participating institution may claim an administrative
cost allowance for administering the programs. (See sections 3.3 and
6.2.6.2. of this book and Chapter 5 of The 1995-96 Federal Student
Financial Aid Handbook.)

1.3.1 Federal Supplemental Educational Opportunity Grant
(FSEOG) Program

FSEOGs do not have to be repaid. These funds are for
undergraduate students with financial need who have not yet
received a bachelor's degree or a first professional degree. When
selecting FSEOG recipients, a school must make awards first to
applicants with exceptional financial need and give a priority to
applicants who receive Federal Pell Grants. (See Chapter 6 of
The 1995-96 Federal Student Financial Aid Handbook and 34 CFR
Part 676.)

1.3.2 Federal Work-Study (FWS) Program

The FWS Program provides jobs for undergraduate and graduate
students. Jobs may be on campus or off campus. Beginning with the
1994-95 award year, a school must use at least 5 percent of its FWS
allocation for an award year to pay the federal share of wages to
students employed in community service jobs, unless ED approves a
waiver. Students must be paid at least the federal minimum wage,
and a portion of the wages is paid by the institution or off-campus
employer. (See Chapter 7 of The 1995-96 Federal Student Financial
Aid Handbook and 34 CFR Part 675.)

1.3.3 Federal Perkins Loan Program

Federal Perkins Loans are low-interest (5 percent) student loans
made to eligible undergraduate and graduate students by
participating schools. No interest accrues on a loan while a student is
enrolled in an eligible program at least half time. A student must
demonstrate exceptional financial need to qualify for a Federal
Perkins Loan. (See Chapter 8 of The 1995-96 Federal Student
Financial Aid Handbook and 34 CFR Part 674.)

Last Modified: 06/30/1995