[Federal Register Volume 61, Number 136 (Monday, July 15, 1996)]
[Notices]
[Pages 36862-36863]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17871]


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DEPARTMENT OF EDUCATION

Office of Postsecondary Education; Federal Perkins Program 
Expanded Lending Option

AGENCY: Education.

ACTION: Notice of deadline of submission of institutional agreement for 
participation in the Federal Perkins Program Expanded Lending Option.

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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 1996-97 award year (the period from 
July 1, 1996 through June 30, 1997).

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 1996-97 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 1996-97, an institution must have had a Federal Perkins Loan 
cohort rate of 15 percent or less as of June 30, 1995, and must have 
participated in the Federal Perkins Loan Program for the two previous 
award years (1994-95 and 1995-96). 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 deadline 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 1996-97 award year Federal Capital Contribution (FCC) 
received. Only new FCC received on or after July 1, 1996, would be 
matched at the increased rate. Institutions would not match funds 
received prior to July 1, 1996, at the higher rate.
    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 1996-97 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 1996-97 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.
DATES: Closing Date for Transmittal of ELO Participation Agreement: To 
ensure participation in the Federal Perkins Loan Program ELO in the 
1996-97 award year, an eligible institution that elects to participate 
must submit its ELO Participation Agreement by August 1, 1996.
    ELO Participation Agreement Delivered By Mail: An ELO Participation 
Agreement delivered by mail must be addressed to the U.S. Department of 
Education, Student Financial Assistance Programs, Institutional 
Financial Management Division, Campus-Based Financial Operations 
Branch, 600 Independence Avenue, SW., Room 4714 Regional Office 
Building 3, Washington, DC 20202-5458.
    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.

[[Page 36863]]

    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, Student 
Financial Assistance Programs, Institutional Financial Management 
Division, Campus-Based Financial Operations Branch, 7th and D Streets, 
SW., Room 4714 Regional Office Building 3, Washington DC. 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 August 1, 1996.
    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.
    Government-wide Debarment and Suspension (Non-procurement) and 
Government-wide Requirements for Drug-Free Workplace (Grants), 34 CFR 
part 85.

FOR FURTHER INFORMATION CONTACT: For information concerning ELO 
Participation Agreement submissions, contact Sandra Donelson, Financial 
Management Specialist, Campus-Based Financial Operations Branch, 
Institutional Financial Management Division, Office of Postsecondary 
Education, 600 Independence Avenue, SW. (Room 4714, ROB-3), Washington, 
DC 20202-5452. Telephone: 202-708-9751.
    For technical assistance concerning the Federal Perkins Loan 
Program ELO, contact Susan Morgan, Chief, Campus-Based Loan Programs 
Section, or Sylvia R. Ross, Program Specialist, Policy Development 
Division, Student Financial Assistance Programs, Office of 
Postsecondary Education, U.S. Department of Education, 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.

(Catalog of Federal Domestic Assistance Numbers: 84.038, Federal 
Perkins Loan Program)

    Dated: July 8, 1996.
David A. Longanecker,
Assistant Secretary for Postsecondary Education.
[FR Doc. 96-17871 Filed 7-12-96; 8:45 am]
BILLING CODE 4000-01-P