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  ![](media/image1.png){width="0.78125in"   **UNITED STATES DEPARTMENT OF EDUCATION**\
  height="0.78125in"}                       WASHINGTON, DC 20202

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+----------------------------------+-----------------------------------+
|                                  | March 23, 2006                    |
+----------------------------------+-----------------------------------+
| Alter Ego University (00199201)\ |                                   |
| 4900 Main Street\                |                                   |
| Normal, MN  55762-1457           |                                   |
+----------------------------------+-----------------------------------+
|   --                             |                                   |
| -------- ----------------------- |                                   |
|   Su                             |                                   |
| bject:   2006-2007 Final Funding |                                   |
|                                  |                                   |
|           Authorizations for the |                                   |
|                                  |                                   |
|            Campus-Based Programs |                                   |
|                                  |                                   |
|                                  |                                   |
|                                  |                                   |
|                                  |                                   |
| Summary:   This letter announces |                                   |
|                                  |                                   |
|          the upcoming posting to |                                   |
|                                  |                                   |
|          our eCampus-Based (eCB) |                                   |
|                                  |                                   |
|             web site of schools' |                                   |
|                                  |                                   |
|          2006-2007 final funding |                                   |
|                                  |                                   |
|           authorizations for the |                                   |
|                                  |                                   |
|           campus-based programs. |                                   |
|   --                             |                                   |
| -------- ----------------------- |                                   |
|                                  |                                   |
| Dear Colleague:                  |                                   |
|                                  |                                   |
| Tentative 2006-2007 funding      |                                   |
| levels for the campus-based      |                                   |
| programs were announced on       |                                   |
| January 24, 2006 in Dear         |                                   |
| Colleague Letter CB-05-01. The   |                                   |
| notification of 2006-2007 final  |                                   |
| awards, final funding            |                                   |
| worksheets, and the 2006-2007    |                                   |
| Statement of Account for each    |                                   |
| program will be posted to the    |                                   |
| eCampus-Based (eCB) web site at  |                                   |
| [http://cbfisap                  |                                   |
| .ed.gov](http://cbfisap.ed.gov/) |                                   |
| by April 1, 2006.\               |                                   |
| \                                |                                   |
| As provided in the Consolidated  |                                   |
| Appropriations Act of 2006 (P.L. |                                   |
| 108-447), 2006-2007 Federal      |                                   |
| funds available for the Federal  |                                   |
| Work-Study (FWS), Federal        |                                   |
| Supplemental Educational         |                                   |
| Opportunity Grant (FSEOG), and   |                                   |
| Federal Perkins Loan (Perkins)   |                                   |
| programs are as follows:         |                                   |
|                                  |                                   |
|   --------------------           |                                   |
| ------- ------------------------ |                                   |
|   **[Program]{                   |                                   |
| .underline}**   **[Federal Funds |                                   |
|                                  |                                   |
|                Available for all |                                   |
|                                  |                                   |
|           Schools]{.underline}** |                                   |
|                                  |                                   |
|   FWS                            |                                   |
|                 \$990,257,056.00 |                                   |
|                                  |                                   |
|   FSEOG                          |                                   |
|                 \$778,720,000.00 |                                   |
|                                  |                                   |
|   Fe                             |                                   |
| deral Perkins Loan        \$0.00 |                                   |
|   --------------------           |                                   |
| ------- ------------------------ |                                   |
|                                  |                                   |
| The series of questions and      |                                   |
| answers that follows provides    |                                   |
| important information related to |                                   |
| the final funding                |                                   |
| authorizations.                  |                                   |
|                                  |                                   |
| **Questions & Answers**          |                                   |
|                                  |                                   |
| +---+--------------------------+ |                                   |
| | * | **How are the            | |                                   |
| | * | campus-based program     | |                                   |
| | Q | awards for a school      | |                                   |
| | 1 | determined?**            | |                                   |
| | . |                          | |                                   |
| | * |                          | |                                   |
| | * |                          | |                                   |
| +---+--------------------------+ |                                   |
| | A | A school's 2006-2007     | |                                   |
| | 1 | final funding levels for | |                                   |
| | . | each of the campus-based | |                                   |
| |   | programs are determined  | |                                   |
| |   | in accordance with       | |                                   |
| |   | provisions of the Higher | |                                   |
| |   | Education Act of 1965,   | |                                   |
| |   | as amended (HEA), and by | |                                   |
| |   | the implementing         | |                                   |
| |   | regulations at 34 CFR    | |                                   |
| |   | Part 673.                | |                                   |
| |   |                          | |                                   |
| |   | The final funding        | |                                   |
| |   | worksheets posted on the | |                                   |
| |   | eCB web site will show   | |                                   |
| |   | the specific steps used  | |                                   |
| |   | to calculate your        | |                                   |
| |   | school's 2006-2007       | |                                   |
| |   | campus-based             | |                                   |
| |   | allocations.             | |                                   |
| |   |                          | |                                   |
| |   | To access your school's  | |                                   |
| |   | final funding level      | |                                   |
| |   | worksheets and           | |                                   |
| |   | individual school        | |                                   |
| |   | awards, log in to the    | |                                   |
| |   | eCB web site, select the | |                                   |
| |   | "Self Service" link from | |                                   |
| |   | the top navigation bar,  | |                                   |
| |   | and scroll to the        | |                                   |
| |   | "Campus-Based            | |                                   |
| |   | Notification" section.   | |                                   |
| |   | Then, select "Final      | |                                   |
| |   | Awards" and "Statement   | |                                   |
| |   | of Account." For a       | |                                   |
| |   | line-by-line explanation | |                                   |
| |   | of the worksheets, refer | |                                   |
| |   | to Attachment A of the   | |                                   |
| |   | Tentative Awards Dear    | |                                   |
| |   | Colleague Letter         | |                                   |
| |   | (CB-05-01) posted on the | |                                   |
| |   | IFAP web site at         | |                                   |
| |   | [http://www.ifap.ed.gov/ | |                                   |
| |   | dpcletters/CB0501.html]( | |                                   |
| |   | http://www.ifap.ed.gov/d | |                                   |
| |   | pcletters/CB0501.html/). | |                                   |
| +---+--------------------------+ |                                   |
| |   |                          | |                                   |
| +---+--------------------------+ |                                   |
| | * | **If a school returned   | |                                   |
| | * | more than 10 percent of  | |                                   |
| | Q | its 2003-2004 allocation | |                                   |
| | 2 | for one of the           | |                                   |
| | . | campus-based programs,   | |                                   |
| | * | will it affect its       | |                                   |
| | * | 2006-2007 allocation?**  | |                                   |
| +---+--------------------------+ |                                   |
| | A | Yes, as required by the  | |                                   |
| | 2 | HEA, unless a waiver had | |                                   |
| | . | been granted, if a       | |                                   |
| |   | school returns more than | |                                   |
| |   | 10 percent of its        | |                                   |
| |   | Perkins, FWS, or FSEOG   | |                                   |
| |   | program allocation for   | |                                   |
| |   | an award year, the       | |                                   |
| |   | school\'s allocation for | |                                   |
| |   | that program in the      | |                                   |
| |   | second succeeding award  | |                                   |
| |   | year will be reduced by  | |                                   |
| |   | the amount returned.     | |                                   |
| |   |                          | |                                   |
| |   | We accepted waiver       | |                                   |
| |   | requests with the        | |                                   |
| |   | initial 2006-2007 FISAP  | |                                   |
| |   | submission, through the  | |                                   |
| |   | FISAP edit process, and  | |                                   |
| |   | after tentative awards   | |                                   |
| |   | were announced through   | |                                   |
| |   | the February 11, 2006    | |                                   |
| |   | deadline. We have        | |                                   |
| |   | reviewed all of the      | |                                   |
| |   | waiver requests we       | |                                   |
| |   | received and have posted | |                                   |
| |   | letters reflecting our   | |                                   |
| |   | decisions to the eCB web | |                                   |
| |   | site. Schools that       | |                                   |
| |   | requested the waivers    | |                                   |
| |   | can access these letters | |                                   |
| |   | by logging in to the eCB | |                                   |
| |   | web site and selecting   | |                                   |
| |   | the "Self Service" link  | |                                   |
| |   | from the top navigation  | |                                   |
| |   | bar. Any school that     | |                                   |
| |   | underutilized its        | |                                   |
| |   | 2004-2005 allocation by  | |                                   |
| |   | more than 10 percent and | |                                   |
| |   | did not receive approval | |                                   |
| |   | of a waiver request will | |                                   |
| |   | see an adjustment in the | |                                   |
| |   | applicable final funding | |                                   |
| |   | worksheet on the line    | |                                   |
| |   | labeled "Allocation      | |                                   |
| |   | Reduction."              | |                                   |
| +---+--------------------------+ |                                   |
| |   |                          | |                                   |
| +---+--------------------------+ |                                   |
| | * | **When will campus-based | |                                   |
| | * | funds become available   | |                                   |
| | Q | for use by a school?**   | |                                   |
| | 3 |                          | |                                   |
| | . |                          | |                                   |
| | * |                          | |                                   |
| | * |                          | |                                   |
| +---+--------------------------+ |                                   |
| | A | Federal funds for the    | |                                   |
| | 3 | campus-based programs    | |                                   |
| | . | will be posted to a      | |                                   |
| |   | school\'s grantee        | |                                   |
| |   | account in the           | |                                   |
| |   | Department\'s Grant      | |                                   |
| |   | Administration and       | |                                   |
| |   | Payment System (GAPS) by | |                                   |
| |   | July 1, 2006. Federal    | |                                   |
| |   | funds are to be          | |                                   |
| |   | withdrawn from your      | |                                   |
| |   | school's grantee account | |                                   |
| |   | according to the         | |                                   |
| |   | procedures specified in  | |                                   |
| |   | the GAPS *User's Guide*. | |                                   |
| +---+--------------------------+ |                                   |
| |   |                          | |                                   |
| +---+--------------------------+ |                                   |
| | * | **Will there be          | |                                   |
| | * | additional campus-based  | |                                   |
| | Q | funds available for the  | |                                   |
| | 4 | 2006-2007 award year?**  | |                                   |
| | . |                          | |                                   |
| | * |                          | |                                   |
| | * |                          | |                                   |
| +---+--------------------------+ |                                   |
| | A | All of the Federal       | |                                   |
| | 4 | campus-based funds       | |                                   |
| | . | available for the        | |                                   |
| |   | 2006-2007 FWS Program    | |                                   |
| |   | have been allocated in   | |                                   |
| |   | the final award process. | |                                   |
| |   | However, some schools    | |                                   |
| |   | may qualify for          | |                                   |
| |   | supplemental 2006-2007   | |                                   |
| |   | campus-based funds based | |                                   |
| |   | upon a reallocation of   | |                                   |
| |   | unexpended 2005-2007     | |                                   |
| |   | allocations. Specific    | |                                   |
| |   | information on the       | |                                   |
| |   | reallocation process,    | |                                   |
| |   | including an application | |                                   |
| |   | (Reallocation Form       | |                                   |
| |   | E40-4P) for requesting   | |                                   |
| |   | additional FWS funds,    | |                                   |
| |   | will be included with    | |                                   |
| |   | the eCB FISAP in July    | |                                   |
| |   | 2006.                    | |                                   |
| +---+--------------------------+ |                                   |
| |   |                          | |                                   |
| +---+--------------------------+ |                                   |
| | * | **What is the purpose of | |                                   |
| | * | the Perkins "Level of    | |                                   |
| | Q | Expenditure" shown on a  | |                                   |
| | 5 | school's final funding   | |                                   |
| | . | documentation?**         | |                                   |
| | * |                          | |                                   |
| | * |                          | |                                   |
| +---+--------------------------+ |                                   |
| | A | The level of expenditure | |                                   |
| | 5 | shown on your Statement  | |                                   |
| | . | of Account and Perkins   | |                                   |
| |   | final funding worksheet  | |                                   |
| |   | represents the maximum   | |                                   |
| |   | amount your school is    | |                                   |
| |   | authorized to expend     | |                                   |
| |   | from its Federal Perkins | |                                   |
| |   | Loan fund for the        | |                                   |
| |   | 2006-2007 award year. If | |                                   |
| |   | your school wants to     | |                                   |
| |   | request an increase in   | |                                   |
| |   | its level of             | |                                   |
| |   | expenditure, you must    | |                                   |
| |   | contact the School       | |                                   |
| |   | Participation Team at    | |                                   |
| |   | the Department's         | |                                   |
| |   | regional office that     | |                                   |
| |   | serves your state.       | |                                   |
| |   | Please note that an      | |                                   |
| |   | approved request to      | |                                   |
| |   | increase the level of    | |                                   |
| |   | expenditure will not     | |                                   |
| |   | result in any increase   | |                                   |
| |   | to the Federal Capital   | |                                   |
| |   | Contribution allocation. | |                                   |
| |   | It will only authorize   | |                                   |
| |   | your school to expend    | |                                   |
| |   | funds beyond the initial | |                                   |
| |   | level of expenditure     | |                                   |
| |   | established as part of   | |                                   |
| |   | this final allocation    | |                                   |
| |   | process.                 | |                                   |
| |   |                          | |                                   |
| |   | The School Participation | |                                   |
| |   | Team phone numbers are   | |                                   |
| |   | available at             | |                                   |
| |   | <http://fsa4schools.e    | |                                   |
| |   | d.gov/help/contacts.htm# | |                                   |
| |   | Case_Management_Teams/>. | |                                   |
| +---+--------------------------+ |                                   |
| |   |                          | |                                   |
| +---+--------------------------+ |                                   |
| |   | If you have any          | |                                   |
| |   | questions regarding your | |                                   |
| |   | school's 2006-2007 final | |                                   |
| |   | funding levels, contact  | |                                   |
| |   | our Campus-Based Call    | |                                   |
| |   | Center at 877-801-7168.  | |                                   |
| |   | Customer service         | |                                   |
| |   | representatives are      | |                                   |
| |   | available Monday through | |                                   |
| |   | Friday from 8:00 A.M.    | |                                   |
| |   | until 8:00 P.M. (ET).    | |                                   |
| +---+--------------------------+ |                                   |
+----------------------------------+-----------------------------------+
|                                  | Sincerely,\                       |
|                                  | \                                 |
|                                  | \                                 |
|                                  | Kathleen Wicks, Acting Director\  |
|                                  | Campus-Based Systems and          |
|                                  | Operations Division\              |
|                                  | Federal Student Aid               |
+----------------------------------+-----------------------------------+