The Campus-Based Financial Aid Programs: Background and Issues (CRS Report for Congress)
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| Release Date |
Revised Nov. 21, 2017 |
| Report Number |
R45024 |
| Report Type |
Report |
| Authors |
Fountain, Joselynn H. |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
Three need-based student financial aid programs authorized under Title IV of the Higher
Education Act of 1965 (HEA)—Federal Supplemental Educational Opportunity Grant (FSEOG)
program, the Federal Work-Study (FWS) program, and the Federal Perkins Loan program—are
collectively referred to as the “campus-based” programs. These programs are considered campusbased
because federal funds are awarded directly to institutions of higher education (IHEs) that
administer the programs and provide institutional funds to match the federal funds they receive
for them.
The campus-based programs are among the oldest of the federal student financial aid programs.
As federal aid has largely transitioned to a system that allows for “portability” in receipt of
student aid, meaning that most forms of aid are made available to students at whichever
participating institution a student chooses to attend, the campus-based programs have come to
play a relatively smaller role in the federal student aid effort.
The campus-based programs’ authorizations of appropriations, along with many other provisions
under the HEA, were set to expire at the end of FY2014, and were automatically extended
through FY2015 under Section 422 of the General Education Provisions Act (GEPA). The
FSEOG and FWS programs have continued to be funded through annual appropriation bills, most
recently through the Continuing Appropriations Act 2018 (P.L. 115-56), which extended the
programs through December 8, 2017. The Perkins Loan program was amended and extended
through FY2017 under the Federal Perkins Loan Program Extension Act of 2015 (Extension Act;
P.L. 114-105). The Extension Act prohibits future appropriations for the Perkins Loan program
and prohibits an automatic extension of it under GEPA.
During consideration of reauthorization of the HEA, several issues related to the campus-based
programs may be considered. These include the extent to which the campus-based programs
provide types of aid to students that are not provided via other postsecondary aid programs,
whether the current formula for allocating funds to institutions is optimal, and the potential role of
the campus-based aid programs in a redesigned federal aid system. Provisions specific to each
program, such as requirements for community service under FWS and terms and conditions of
Perkins Loans, are also likely to be considered.
