A number of schools have asked whether the decreases in their campus-based allocations might be in error. The Department of Education has not found any glitches in the allocation process, but encourages schools to check that the data submitted by the school on its FISAP was correct.

A number of factors can result in lower allocations. The formula first protects a school's allocation up to the amount it received in 1999 (the school's guarantee). The remainder of the allocation is based on an institution's "fair share," which is determined relative to the fair share of all institutions applying for funds. A school can use the worksheets that accompany its awards to compare its fair share for 2010-11 to its fair share for 2009-10 to whether it has decreased (look at the fair share figure, not the fair share increase). It can then explore the reasons for changes by looking at the need figures.

For example, the FSEOG allocation is impacted by the amount of Pell Grant received by the institution's students. As that Pell Grant amount goes up, the institution's "need" for FSEOG goes down.

FSEOG and FWS allocations are also affected by the average cost of attendance across a school's total student population; the average tuition and fees for this figure are computed by dividing the institution's total revenue from tuition and fees by its head count. If the institution has experienced an increase in part-time students, the average tuition and fees would decrease, causing a lower need for that institution. If the institution's tuition and fee charges have not increased to the same extent as other schools, that institution's need would be less, relative to total need, than other schools, all of whom are competing for a limited amount of funding, which did not increase from last year's appropriations.

The distribution of aid applicants in the income grid on the FISAP can also cause a school's need to increase or decrease. Underuse of last year's allocation may also cause a decrease in an institution's allocation. And, of course, the $200,000 added to last year's FWS appropriation by ARRA has not been renewed, so the amount available overall this year is less than last year.

The Perkins Level of Expenditure (LOE) takes into account expected collections of outstanding loans. If an institution believes it will do better on collections, it can request an increase in its LOE.

Posted 02/05/10 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web site questions or comments to Web@NASFAA.org.