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DCLPublicationDate: 3/1/99 DCLID: CB-99-6 AwardYear: Summary: Information regarding your institution's final funding authorization under the Campus-Based Programs for the 1999-2000 award year. MARCH 1999 CB-99-6 SUMMARY: Information regarding your institution's final funding authorization under the Campus-Based Programs for the 1999-2000 award year. REFERENCE: The Student Financial Aid Handbook, Chapters 5, 6, 7, and 8. Dear Financial Aid Administrator: The federal funds available for the 1999-2000 award year for the Federal Perkins Loan, Federal Work-Study (FWS), and/or Federal Supplemental Educational Opportunity Grant (FSEOG) programs are as follows: Program Amount FWS $ 870,000,000 FSEOG $ 619,000,000 Federal Perkins Loan $ 100,000,000 Final 1999-2000 funding levels have been determined in accordance with procedures contained in the: 1. Higher Education Act of 1965 (HEA), as amended; and 2. Regulations for the Campus-Based Programs (34 CFR Part 673, 34 CFR Part 674, 34 CFR Part 675, and 34 CFR Part 676). A copy of the final funding worksheet is provided for each program which shows the specific steps used to calculate the enclosed allocations. For a more detailed explanation of the procedures used, refer to Dear Colleague CB-99-4 (January) posted on ED’s website (ifap.ed.gov.). Allocation Reduction Due to Under Use of Funds The HEA requires that if an institution returned more than 10 percent of its Federal Perkins Loan, FWS, or FSEOG program allocation for an award year (including funds returned as unexpended during our mid-year reallocation process and funds returned in the FISAP year-end expenditure report), the institution's allocation for that program will be reduced in the succeeding award year by the amount unexpended. The HEA authorized the Secretary to waive this reduction for an institution if enforcing the reduction would be contrary to the interest of the program. All institutions had an opportunity to request a waiver of the under use of funds reduction with their 1999-2000 FISAP. We also provided a second opportunity to request a waiver of the reduction for institutions which had under used funds because of the important change in the base guarantee year to 1999-2000. We have reviewed all waiver requests received and have mailed a separate letter to those institutions showing the Department's decision regarding their requests. Approved waivers are reflected by an increased authorization for that program in the enclosed funding worksheets and final authorization letter. There is a line item on each funding worksheet to reflect the increased authorizations for some institutions resulting from our redistribution of the national total of under use of fund reductions for those institutions that either did not submit a waiver request or received a waiver denial. Federal funds for these programs will be posted into your institution's grantee account in the Department's new EDCAPS Grant Administration and Payment Systems (GAPS) by July 1, 1999. Payments are to be withdrawn from your grantee account according to the procedures specified in the new Department of Education Payee’s Guide. Of the $870,000,000 appropriated for the 1999-2000 Federal Work-Study Program, $2,000,000 has been earmarked for Work-Colleges participation. An additional $17,000,000 will be allocated to institutions that graduate or transfer 50% or more of their Pell Grant recipients, as provided for in Section 442(a)(4) of the HEA. More information about this supplemental FWS allocation will be forwarded to institutions in the near future. Please note that $851,000,000 of the 1999-2000 FWS appropriation has been allocated according to the standard procedure outlined in the final funding worksheet. If your institution participates in the Federal Perkins Loan Program, the level of expenditure shown in the enclosed letter represents the maximum amount the institution is authorized to expend from its loan fund for the 1999-2000 award year. If your institution wants to request an increase in its approved level of expenditure for the 1999-2000 award year, you may request a higher authorized level of expenditure by writing to the Area Case Director at the regional office which serves your state. A request to increase the authorized level of expenditure will not result in any increase to the Federal Capital Contribution allocation. If you have any questions regarding the enclosed 1999-2000 funding levels, please direct them to the appropriate Campus-Based Programs Financial Management Specialist identified in the enclosed listing. Sincerely, Michele Selvage, Director Institutional Financial Management Division Attachment

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