Department of Education Provides Resources to Help with Perkins Loan Wind-Down

Recently, the Department of Education published a Questions and Answers document concerning the wind-down of the Federal Perkins Loan program.

The document offers guidance on a wide range of issues, including clarification on the grandfathering provisions for current Perkins Loan recipients, disbursement of new loans, and allowances for drawing down Perkins cash-on-hand reserves. Notably, the Department will begin estimating the amount of each institution’s “excess cash” based on reported expenditures on a school’s Fiscal Operations Report (part of the FISAP) and an estimate of funding needs for the following year(s) to continue funding Perkins Loans for current recipients.

Although NAICU continues to advocate for the reauthorization of the Perkins Loan program, institutions should continue to monitor guidance issued by the Department of Education on their responsibilities should the program terminate on September 1, 2015.

These questions and answers, as well as additional Campus-Based Program information, are available on the Campus-Based Processing Information page on the IFAP Web site.

For more information, please contact:
Tim Powers