The Department of Education ensures equal access to education and promotes educational excellence through coordination, management and accountability in Federal education programs. The Department works to supplement and complement educational efforts on all levels, encouraging increased involvement by the public, parents and students.
Uses and Use Restrictions
To make grants of up to $5,000 for full-time (reduced for less than full-time) attendance to students with substantial financial need who are enrolled at postsecondary institutions.
This program is subject to non-supplanting requirements and must use a restricted indirect cost rate that is referenced under 34 CFR 76.564-76.569.
For assistance call the Office of the Chief Financial Officer/Indirect Cost Group at 202-708-7770.
The agency responsible for administering each State's need-based scholarship/grant program.
Territories are also eligible to apply.
Postsecondary education students with substantial financial need will benefit.
A State application reviewed and approved annually by the Secretary of Education qualifies the State for student award funds. States pay administrative costs. This program is excluded from coverage under OMB Circular No. A-87.
Aplication and Award Process
For technical assistance for States regarding the State application, refer to ED Form 1288.
This program is excluded from coverage under OMB Circular No.
This program is excluded from coverage under E.O.
The designated State student scholarship or grant assistance agency in each State annually applies for State allotments/reallotments of funds; refer to ED Form 1288. Eligible students annually apply to their State of residence for a grant under this program, if the State has received an allotment. Student applicants must follow the application procedures as directed by each State and must demonstrate substantial financial need to receive a grant. This program is excluded from coverage under OMB Circular No. A-110.
The Federal Student Aid office awards grants to State student scholarship or grant assistance agencies for making grants or providing work-study financial assistance to students.
Application forms are mailed annually to eligible State agencies at least a month before the closing date which is published annually in the Federal Register. Students must submit an application according to deadlines established by the participating States.
Higher Education Act of 1965, Title IV, Part A, Subpart 4, as amended, 20 U.S.C. 1070c-1070c-4.
Range of Approval/Disapproval Time
From 30 to 45 days.
Appeals of final disapprovals can be made to the Secretary and may be subject to judicial review.
New State applications are required annually.
Formula and Matching Requirements
Each State receives an allotment and possibly a reallotment of funds based upon the number of students it deems eligible to participate in the program relative to the total number of such students in all States; no State receives less than its fiscal year 1979 allotment (Section 415B(a)(1), HEA). Maintenance of effort (MOE) requirements provide that annual State-appropriated expenditures in the program must not be less than the average for the previous three fiscal years (Section 415C(b)(8), HEA). States match Federal funds on at least their MOE level, but not less than a one-to-one basis, out of resources appropriated by the State which represent additional State grant expenditures over an established base year, defined as the second year before the State entered the LEAP Program (Section 415C(b)(6), HEA).
Length and Time Phasing of Assistance
Funds are awarded for use by participating States for one award year at a time following the year of application.
Post Assistance Requirements
Annual fiscal performance report (ED Form 1288-1) and other reports as required by the Secretary.
Records are examined by State or Federal auditors.
States must maintain records sufficient to identify student grants awarded in compliance with the program statute and requirements concerning the expenditure of Federal funds and matching State appropriated funds. Records must be retained for three years or until completion of Department audit, whichever is later.
(Grants) FY 07 $64,987,000; FY 08 est $63,852,000; and FY 09 est $0.
Range and Average of Financial Assistance
Maximum grant is $5,000; average grant is $1,000.
Regulations, Guidelines, and Literature
34 CFR 692 (Program Regulations) reissued July 14, 1981, amended December 1, 1986, November 27, 1987, and January 28, 1994. Directory of State Agency Official Contacts (current).
Regional or Local Office
Program description and a List of State student scholarship or assistance agencies available in the Education Department regional offices. Program is administered from the Department's headquarters.
Office Federal Student Aid, Department of Education, 400 Maryland Ave., S.W., Washington, DC 20202-5447. Telephone: (800) 433-3243.
Criteria for Selecting Proposals