NASFAA Reauthorization Task Force Preliminary Recommendations

Federal Supplemental Educational Opportunity Grant (FSEOG) Program—Part A, Subpart 3; and LEAP/SLEAP

Issue 1: Authorization for FSEOG [Section 413A]  

Recommendation: Increase authorization levels for FSEOG.

Rationale: The FSEOG Program allows participating institutions the flexibility of offering grants to needy students to meet their educational needs.  Annually the need for funds exceeds the allocation.

Issue 2: Priority of FSEOG Awards [Section 413C(c)(2)]

Recommendation: Eliminate the lowest EFC order for awarding. Retain the preference that FSEOG recipients also be Pell Grant recipients but permit schools to direct a minimal percentage (to be specified) of FSEOG funds to non-Pell recipients.

Rationale: This flexibility would allow financial aid administrators to target funds to the neediest students.

Issue 3: Allocation of Funds [Section 413D(a)(4)(A)-(B)]  

Recommendation: Delete these two provisions.  

Rationale: Conforming amendment to enable implementation of Issue 3. Eliminating these two provisions in the allocation formula allows new money to go to schools with the highest number of Pell eligible students, rather than basing the allocation on graduation or transfer rates.

Leveraging Educational Assistance Partnership (LEAP) and Special Leveraging Educational Assistance Partnership Program (SLEAP)—Part A, Subpart 4

Issue 1: Purpose and Appropriations Authorized [Section 415A]

Recommendation: LEAP funding should be continued and increased to prevent the elimination or severe reduction of some state need based grant programs.  

Rationale: The purpose of the LEAP program is to encourage the development of state need based financial aid initiatives that provide student access to higher education. States should be encouraged to continue these types of programs.  

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Posted October 11, 2002 on www.NASFAA.org, the Web Site of the
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