Great Lakes

In Case You Missed It: Perkins Loan Extension Act of 2015

October 12, 2017

Part of our commitment to keeping you informed is calling your attention to changes in the industry. In case you missed it, the U.S. Department of Education (ED) recently reminded financial aid professionals that authority for the Perkins Loan Program ended September 30, 2017.

In DCL GEN-17-10, ED provided information on the wind-down of the Federal Perkins Loan Program. Here are a few key points from this announcement.

  • It's still possible for Congress to further extend the Perkins Loan Program as it did three months into the new fiscal year in 2015, but ED is proceeding as if the program is ending.

  • No Perkins Loan disbursements are permitted after June 30, 2018.

  • Schools were reminded that the federal share of their Perkins Loan revolving funds must be returned to ED, and that ED will begin collecting it following submission of the 2019-2020 Fiscal Operations and Application to Participate (FISAP), which is due October 1, 2018. More information will be provided on the distribution of assets of institutions' Perkins Loan Revolving Funds, including deadlines, prior to the October 1, 2018 FISAP deadline.

  • Schools aren't required to assign Perkins Loans to ED or liquidate their Perkins Loan revolving funds due to the wind-down of the Perkins Loan Program, but they may choose to liquidate at any time in the future. This announcement describes what schools wanting to liquidate should do.

We hope that this is helpful and appreciate all you do to assist your borrowers. If you have additional questions about the information in this letter, please contact Brian Smith at brian.smith@ed.gov or Tamy Garofano at tamy.garofano@ed.gov. For other campus-based questions, call the Campus-Based Call Center at (877) 801-7168 or email CBFOB@ed.gov.

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