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AwardYear: 1995-1996 EnterChapterNo: 8 EnterChapterTitle: Federal Supplemental Educational Opportunity Grant Program SectionNumber: SectionTitle: Introduction PageNumbers: 1-2 PROGRAM PURPOSE [[Purpose--for needy undergraduates]] The purpose of the Federal Supplemental Educational Opportunity Grant (FSEOG) Program is to provide grants to undergraduate students "with exceptional need" to help pay for their postsecondary education. This provision is in Section 413C(c)(2) of the Higher Education Act of 1965, as amended. When selecting FSEOG recipients, schools are required to use the selection criteria discussed in Section One of this chapter, giving priority to applicants with exceptional financial need. NEW REGULATORY PROVISIONS [[Final Rule 11-30-94]] The Final Rule published on November 30, 1994 includes several new provisions, effective July 1, 1995, that amend the FSEOG regulations and implement provisions of the Higher Education Amendments of 1992. - ED reallocates funds to schools in a manner that best carries out the purposes of the FSEOG Program (this provision is in Section 676.4 of the Final Rule published in the Federal Register on November 30, 1994). [[Penalty for returning over 10% of funds]] - If a school returns more than 10 percent of its FSEOG allocation for an award year, ED will reduce the institution's allocation for the second succeeding award year by the dollar amount returned (this provision is in Section 676.4(f) of the Final Rule and is discussed in the Introduction to Chapter Five). [[Payment to a student who drops out]] - Under certain conditions, a student who drops out before receiving his or her FSEOG can receive a payment (refer to Section 676.16(f) of the Final Rule). The conditions for making such a late payment are discussed in Section Two of this chapter. [[Less-than-full-time and independent students]] - If a school's FSEOG allocation is directly or indirectly based in part on the financial need of less-than-full-time or independent students and if the need of all of these students exceeds 5 percent of the total need of all students at the school, the school must OFFER those students at least 5 percent of its FSEOG allocation (see Section 676.10(b) of the Final Rule and Chapter Five, Section One). [[Definition of overpayment]] - If a student receives total resources that exceed the student's financial need for campus-based aid by MORE than $300, the amount over $300 is an overpayment. The overaward provisions are in Section 676.14 of the Final Rule and are discussed in Chapter Five, Section Three. [[Transfer of funds]] - The transfer of FSEOG Program funds to any other program has been prohibited since the beginning of the 1993-94 award year. However, under a provision of the November 30 Final Rule, a school that transfers funds to the FSEOG Program from the FWS Program during an award year must transfer any unexpended FWS funds BACK to the FWS Program at the end of the award year (refer to Section 676.18(c) of the Final Rule and Section Three of this chapter). [[Final Rule 12-1-94]] The General Provisions Final Rule published in the Federal Register on December 1, 1994, effective July 1, 1995, provides that the earliest a school may PAY DIRECTLY OR CREDIT THE ACCOUNT of an enrolled student is 10 DAYS before the first day of a payment period or period of enrollment; this provision is included in Section 668.165(c). A school may no longer credit the account of an enrolled student up to 3 weeks before the first day of classes. In addition, the Final Rule provides that a school may choose to pay a student by electronic funds transfer (EFT) to the bank account designated by the student or parent, as applicable; however, the school must obtain an authorization from the student or parent to disburse by EFT. |
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