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.) |