(May 2008) In April, the Department of Education issued a Dear Colleague Letter providing information about the Fiscal Operations Report for 2007-08 and Application to Participate for 2009-2010 (FISAP) for the Federal Perkins Loan, Federal Supplemental Educational Opportunity Grant, and Federal Work Study programs.

The letter notes several changes to the FISAP from previous years. Changes included: minor edits for clarity and consistency; instructions that if a school intends to reclaim any additional Institutional Capital Contribution (ICC) that the school deposits into the Perkins Loan Fund during the 2007-2008 Award Year, the additional ICC must be entered as a short-term, no interest loan in its accounting records; and the definition of an Independent Student is revised in the FISAP Instruction Booklet to reflect changes made by the College Cost Reduction and Access Act (the CCRAA).

On a call this week between COHEAO and the Department of Education, Department officials explained that the requirement that an identified, short-term loan be repaid within that academic year has been deleted. ED stated that institutions will be able to reclaim their loans to the fund over a longer period of time as long as accurate accounting records are kept on file and it is specifically noted what the short-term loan to the fund is.

To view the technical changes visit: http://www.ifap.ed.gov/nsldsmaterials/attachments/TechnicalUpdatePK200802.pdf

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