[Code of Federal Regulations]

[Title 34, Volume 3]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 34CFR673.7]



[Page 559]

 

                           TITLE 34--EDUCATION

 

 CHAPTER VI--OFFICE OF POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION

 

PART 673_GENERAL PROVISIONS FOR THE FEDERAL PERKINS LOAN PROGRAM, FEDERAL 

 

  Subpart B_General Provisions for the Federal Perkins Loan, FWS, and 

                             FSEOG Programs

 

Sec. 673.7  Administrative cost allowance.



    (a) An institution participating in the Federal Perkins Loan, FWS, 

or FSEOG programs is entitled to an administrative cost allowance for an 

award year if it advances funds under the Federal Perkins Loan Program, 

provides FWS employment, or awards grants under the FSEOG Program to 

students in that year.

    (b) An institution may charge the administrative cost allowance 

calculated in accordance with paragraph (c) of this section for an award 

year against-(1) The Federal Perkins Loan Fund, if the institution 

advances funds under the Federal Perkins Loan Program to students in 

that award year;

    (2) The FWS allocation, if the institution provides FWS employment 

to students in that award year; and

    (3) The FSEOG allocation, if the institution awards grants to 

students under the FSEOG program in that award year.

    (c) For any award year, the amount of the administrative costs 

allowance equals--

    (1) Five percent of the first $2,750,000 of the institution's total 

expenditures to students in that award year under the FWS, FSEOG, and 

the Federal Perkins Loan programs; plus

    (2) Four percent of its expenditures to students that are greater 

than $2,750,000 but less than $5,500,000; plus

    (3) Three percent of its expenditures to students that are 

$5,500,000 or more.

    (d) The institution shall not include, when calculating the 

allowance in paragraph (c) of this section, the amount of loans made 

under the Federal Perkins Loan Program that it assigns during the award 

year to the Secretary under section 463(a)(6) of the HEA.

    (e) An institution shall use its administrative costs allowance to 

offset its cost of administering the Federal Pell Grant, FWS, FSEOG, and 

Federal Perkins Loan programs. Administrative costs also include the 

expenses incurred for carrying out the student consumer information 

services requirements of subpart D of the Student Assistance General 

Provisions regulations, 34 CFR part 668.

    (f) An institution may use up to 10 percent of the administrative 

costs allowance, as calculated under paragraph (c) of this section, that 

is attributable to the institution's expenditures under the FWS program 

to pay the administrative costs of conducting its program of community 

service. These costs may include the costs of--

    (1) Developing mechanisms to assure the academic quality of a 

student's experience;

    (2) Assuring student access to educational resources, expertise, and 

supervision necessary to achieve community service objectives; and

    (3) Collaborating with public and private nonprofit agencies and 

programs assisted under the National and Community Service Act of 1990 

in the planning, development, and administration of these programs.

    (g) If an institution charges any administrative cost allowance 

against its Federal Perkins Loan Fund, it must charge these costs during 

the same award year in which the expenditures for these costs were made.



(Authority: 20 U.S.C. 1070b-2, 1087cc, and 1096, 42 U.S.C. 2753)



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