[Federal Register Volume 59, Number 167 (Tuesday, August 30, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21307]


[[Page Unknown]]

[Federal Register: August 30, 1994]


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DEPARTMENT OF EDUCATION

 

Office of Postsecondary Education; Federal Perkins Loan Program 
Expanded Lending Option

AGENCY: Department of Education.

ACTION: Notice of deadline for submission of institutional agreement 
for participation.

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SUMMARY: This notice establishes the deadline for submission of the 
``Institutional Agreement For Participation In the Federal Perkins Loan 
Program Expanded Lending Option (ELO)'' (ELO Participation Agreement) 
by those eligible institutions that elect to participate in the Federal 
Perkins Loan Program ELO in the 1994-95 award year (the period from 
July 1, 1994 through June 30, 1995).

SUPPLEMENTARY INFORMATION: The Federal Perkins Loan Program provides 
low-interest loans to financially needy students attending institutions 
of higher education to help them pay their educational costs. The ELO 
is available for the 1994-95 award year for institutions of higher 
education that participate in the Federal Perkins Loan Program.
    To be eligible to participate in the Federal Perkins Loan Program 
ELO for 1994-95, an institution must have a Federal Perkins Loan cohort 
default rate of 15 percent or less as of June 30, 1993, and must have 
participated in the Federal Perkins Loan Program for the two previous 
award years (1992-93 and 1993-94). In addition, an institution must 
enter into a special ELO participation agreement with the Secretary. An 
institution that elects to participate in the ELO must complete, sign, 
date and submit the ELO Participation Agreement by the closing date to 
obtain approval.
    Institutions that become Federal Perkins Loan Program ELO 
participants will be required to increase the Institutional Capital 
Contribution (ICC) to at least a dollar-for-dollar match with any 
portion of the 1994-95 award year Federal Capital Contribution (FCC) 
received. Only new FCC received on or after July 1, 1994, would be 
matched at the increased rate. Institutions would not match funds 
received prior to July 1, 1994, at the higher rate. Institutions 
receiving no new FCC for the 1994-95 award year may still elect to 
participate in the Federal Perkins Loan Program ELO.
    Institutions that become Federal Perkins Loan Program ELO 
participants may make loans to eligible students at higher maximum 
annual and aggregate limits than is the case with nonparticipating 
institutions. ELO participating institutions that do not ultimately 
make any loans at the higher ELO levels for the 1994-95 award year must 
still honor the ELO Participation Agreement to deposit in the Federal 
Perkins Loan Program Fund an ICC at least equal to the 1994-95 award 
year FCC deposited into the Fund. All other administrative procedures 
would remain the same as for institutions not participating in the 
Federal Perkins Loan Program ELO.

    Closing Date for Transmittal of ELO Participation Agreement: To 
ensure participation in the Federal Perkins Loan Program ELO in the 
1994-95 award year, an eligible institution that elects to participate, 
must submit its ELO Participation Agreement by September 29, 1994.
    ELO Participation Agreement Delivered By Mail: An ELO Participation 
Agreement delivered by mail must be addressed to the U.S. Department of 
Education, Office of Student Financial Assistance, Campus-Based 
Programs, Financial Management Division, 400 Maryland Avenue, S.W., 
Room 4621, Regional Office Building 3, Washington, D.C. 20202-5452.
    An institution must show proof of mailing its ELO Participation 
Agreement by the closing date. Proof of mailing consists of one of the 
following: (1) A legible mail receipt with the date of mailing stamped 
by the U.S. Postal Service, (2) a legibly dated U.S. Postal Service 
postmark, (3) a dated shipping label, invoice, or receipt from a 
commercial carrier, or (4) any other proof of mailing acceptable to the 
U.S. Secretary of Education.
    If an ELO Participation Agreement is sent through the U.S. Postal 
Service, the Secretary does not accept either of the following as proof 
of mailing: (1) A private metered postmark, or (2) a mail receipt that 
is not dated by the U.S. Postal Service. An institution should note 
that the U.S. Postal Service does not uniformly provide a dated 
postmark. Before relying on this method, an institution should check 
with its local post office. An institution is encouraged to use 
certified or at least first-class mail.
    ELO Participation Agreement Delivered by Hand and Commercial 
Delivery Services: An ELO Participation Agreement delivered by hand 
must be delivered to the U.S. Department of Education, Office of 
Student Financial Assistance, Campus-Based Programs, Financial 
Management Division, 7th and D Streets, S.W., Room 4621, Regional 
Office Building 3, Washington, D.C.
    Hand-delivered ELO Participation Agreements will be accepted 
between 8 a.m. and 4:30 p.m. daily (Eastern Daylight Time), except 
Saturdays, Sundays, and Federal holidays. An ELO Participation 
Agreement that is hand-delivered will not be accepted after 4:30 p.m. 
on the closing date.
    Applicable Regulations: The following regulations apply to this 
program:

Student Assistance General Provisions, 34 CFR Part 668.
Federal Perkins Loan Program, 34 CFR Part 674.
Federal Work-Study Program, 34 CFR Part 675.
Federal Supplemental Educational Opportunity Grant Program, 34 CFR Part 
676.
Institutional Eligibility Under the Higher Education Act of 1965, as 
amended, 34 CFR part 600.
Federal Family Educational Loan Program, 34 CFR 682.
New Restrictions on Lobbying, 34 CFR part 82.
Governmentwide Debarment and Suspension (Nonprocurement) and 
Governmentwide Requirements for Drug-Free Workplace (Grants), 34 CFR 
part 85.

For Further Information Contact: For information concerning ELO 
Participation Agreement submissions, contact Robert Coates, Director 
Campus-Based Programs, Financial Management Division, Office of 
Postsecondary Education, 400 Maryland Avenue, S.W., (Room 4621, ROB-3), 
Washington, D.C. 20202-5452. Telephone: 202-708-4664.
    For technical assistance concerning the Federal Perkins Loan 
Program ELO, contact Susan Morgan, Chief, Campus-Based Loan Programs 
Section, Division of Policy Development, Student Financial Assistance 
Programs, Office of Postsecondary Education, U.S. Department of 
Education, Telephone: 202-708-8242 or Sylvia R. Ross, Program 
Specialist, Telephone: 202-708-8242. Individuals who use a 
telecommunications device for the deaf (TDD) may call the Federal 
Information Relay Service (FIRS) at 1-800-877-8339 between 8 a.m. and 8 
p.m., Eastern time, Monday through Friday.

    Dated: August 24, 1994.
David A. Longanecker,
Assistant Secretary for Postsecondary Education.
(Catalog of Federal Domestic Assistance Numbers: 84.038, Federal 
Perkins Loan Program)
[FR Doc. 94-21307 Filed 8-29-94; 8:45 am]
BILLING CODE 4000-01-P