Department of Education Dear Partner Letter

CB-04-04: 2004-05 Final Funding Authorization Letters for the Campus-Based Programs

March 2004

CB-04-04

Subject: 2004-05 Final Funding Authorization Letters for the Campus-Based Programs

Summary: This letter informs schools of the availability of their 2004-2005 final funding authorizations for the campus-based programs.

Dear Partner:

The federal funds available for the 2004-2005 award year for the Federal Perkins Loan (Perkins), Federal Work-Study (FWS), and Federal Supplemental Educational Opportunity Grant (FSEOG) programs are as follows:

Questions & Answers

Q1. When and how will I be informed of my school's 2004-2005 final funding authorizations for the campus-based programs?

A1. On March 23, 2004 we posted 2004-2005 authorization letters and final funding worksheet(s) on the eCampus-Based (eCB) web site at http://cbfisap.ed.gov.

Q2. How were the campus-based awards for my school determined?

A2. Your school's final 2004-2005 funding levels have been determined in accordance with procedures contained in the:

1. Higher Education Act of 1965 (HEA), as amended; and
2. Section 34 CFR Part 673 of the Campus-Based Program Regulations.

The final funding worksheet(s) will show the specific steps used to calculate your awards. Selecting the eCB "Self Service" link from the top navigation bar will give you direct access to your final funding level worksheet(s). For a line-by-line explanation of the worksheets, refer to Dear Partner Letter CB-04-01 posted on the IFAP website at http://ifap.ed.gov/dpcletters/CB0401.

Q3. If my school returned more than 10 percent of its 2002-2003 allocation how will it affect my school's 2004-2005 allocation?

A3. The HEA requires that if a school returns more than 10 percent of its Federal Perkins Loan, FWS, or FSEOG program allocation for an award year, the school's allocation for that program will be reduced in the second succeeding award year by the amount unexpended.

Schools had two opportunities to request an underuse of funds waiver before the February 13, 2004 deadline. We accepted waiver requests with the initial 2004-2005 FISAP submission and through the FISAP edit process. We have reviewed all the waiver requests we received and have posted letters showing the Department's decisions to the eCB web site under the "Self Service" link for the schools that requested the waivers. Any school that underutilized its 2002-2003 allocation by more than 10% and did not receive approval of a waiver request will see an adjustment in the final funding worksheets on the line labeled "Allocation Reduction."

Q4. When will campus-based funds become available to my school?

A4. Federal funds for the campus-based programs will be posted into your school's grantee account in the Department's Grant Administration and Payment Systems (GAPS) by July 1, 2004. Payments are to be withdrawn from your grantee account according to the procedures specified in the Department of Education Payee's Guide.

Q5. Will there be additional FWS funds for the 2004-2005 Award Year?

A5. All of the $998,501,875 appropriated for the 2004-2005 FWS Program has been distributed in the final award process. However, some schools may also qualify for supplemental 2004-2005 FWS funds based upon a reallocation of unexpended 2003-2004 FWS allocations. An application with specific qualifications for requesting supplemental funds (Reallocation Form E40-4P) will be included in your eCB FISAP in July 2004.

Q6. What is the purpose of the Federal Perkins Loan "Level of Expenditure"?

A6. If your school participates in the Federal Perkins Loan Program, the level of expenditure shown on your authorization letter and Perkins final funding worksheet represents the maximum amount your school is authorized to expend from its Perkins loan fund for the 2004-2005 award year. If your school wants to request an increase in its level of expenditure, you may write to the Case Management Team at the regional office that serves your state.

Our schools portal web site www.ed.gov/offices/OSFAP/PEPS/casecontacts.html lists the Case Management Contact for your state. A request to increase the level of expenditure will not result in any increase to the Federal Capital Contribution allocation.

If you have any questions regarding your 2004-2005 funding levels, please call our Campus-Based Call Center at 877-801-7168 for assistance.

Sincerely,

Richard P. Coppage, Director
Campus-Based Operations Branch
Federal Student Aid

Posted March 24, 2004 on www.NASFAA.org, Web Site of the
National Association of Student Financial Aid Administrators
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