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
Institutions use funds to make loans to needy, eligible students for meeting educational expenses.
The maximum annual loan amount limit for an eligible student attending an institution is $6,000 for a graduate or professional student or $4,000 for undergraduates.
The maximum aggregate loan amount for an eligible student attending an institution is $40,000 for a graduate or professional student, including loans borrowed as an undergraduate student, or $20,000 for a student who has successfully completed 2 years of a program of undergraduate study and $8,000 for any other student.
For a program of study abroad that has reasonable costs in excess of the home costs, the annual and aggregate limits may be exceeded by 20 percent.
An institution is entitled to an administrative cost allowance for an award year if it advances funds to students in that year under the Federal Perkins Loans Program, in an amount equal to five percent of the first $2,750,000 in expenditures, plus 4 percent for expenditures greater than $2,750,000 but less than $5,500,000, plus 3 percent for expenditures in excess of $5,500,000.
Higher education institutions (public, private nonprofit, postsecondary vocational, and proprietary) meeting eligibility requirements.
Undergraduate, graduate, or professional students enrolled or accepted for enrollment as regular students in an eligible program, are maintaining satisfactory academic progress in accordance with the standards and practices of the institution, have financial need, do not owe a refund on a Title IV grant, are not in default on a Title IV loan, file a statement of educational purpose, file a statement of registration compliance (Selective Service) and meet citizen/resident requirements.
Institutions must document their eligibility and students must demonstrate financial need. This program is excluded from coverage under OMB Circular No. A-87.
Aplication and Award Process
Representatives of the appropriate ED Regional Office are available for consultation.
See listing of ED Regional Offices in Appendix IV.
Students should contact the institution(s) they attend or plan to attend.
This program is excluded from coverage under E.O.
This program is excluded from coverage under OMB Circular No.
Participating institutions submit a Fiscal Operations Report/Application to Participate in Federal Student Financial Aid Programs (ED Form 646-1) which is mailed to institutions of postsecondary education each summer by the Office Federal Student Aid. New institutions submit only the application form. This program is subject to the provisions of OMB Circular No. A- 110.
The Office Federal Student Aid determines final awards and notifies participating institutions.
Specified on the application (usually around October 1).
Higher Education Act of 1965, Title IV, Part E, as amended, Public Law 103-394, 20 U.S.C. 1087aa-1087hh.
Range of Approval/Disapproval Time
Notices of tentative awards sent by February 1 and final award notification sent by April 1.
Formula and Matching Requirements
Funds are allocated to institutions on the basis of the institution's guarantee allocations and demonstrated need for funding. Institutions award funds to students on the basis of financial need as determined by the Federal Needs Analysis Methodology specified in statute. The institutional capital contribution (ICC) for institutions is one-third of the FCC (or 25 percent of the combined FCC and ICC).
Length and Time Phasing of Assistance
Funds are awarded for use by participating institutions for one award year at a time following the year of application.
Post Assistance Requirements
A single combined Fiscal Operations Report/Application form for Federal Perkins Loans, FSEOG, and FWS (ED Form 646-1) is submitted by each institution at the close of each award year of operation (June 30).
Institutions must have a nonfederal audit done on at least an annual basis at its own expense. Audits may also be performed at Government expense by the Department of Education's Office of the Inspector General as often as its time schedule will allow or when deemed necessary by the Secretary.
Except for loan records and records of expenditures questioned in audits or Departmental program reviews, an institution must keep records for an award year for three years after submitting its Fiscal Operations Report for an award year, or until final resolution of an applicable audit or program review, whichever is later. An institution must keep loan repayment records for at least 3 years from the date of satisfaction of the loan or assignment of the loan to the United States, or it is canceled.
(Federal capital contribution) FY 07 $0; FY 08 est $0; and FY 09 $0.
Range and Average of Financial Assistance
Regulations, Guidelines, and Literature
34 CFR 674; Student Guide, no charge; Student Financial Aid Handbook, no charge; notification to Members of Congress, list of grantees published annually or as required, no charge; Federal Needs Analysis Methodology Booklet, no charge; Verification Handbook, no charge; training materials, no charge.
Regional or Local Office
Students should contact the educational institution(s) they attend or plan to attend. Educational institutions should contact the Regional Administrator for Student Financial Assistance in appropriate ED Regional Office. See Appendix IV of the Catalog.
Office Federal Student Aid, Department of Education, 400 Maryland Avenue, S.W., Washington, DC 20202-5446. Telephone: (800) 433-3243.
Criteria for Selecting Proposals
A recruiting trends report by Michigan State University’s (MSU) Collegiate Employment Research Institute discovers that the financial services sector is decreasing the hiring rate for Bachelor’s degrees from “double-digit expansion”.