Posted Date:March 30, 2016
| Author: | Sue O'Flaherty, Service Director, Program Management, Federal Student Aid |
Subject: Federal Perkins Loan Assignment and Liquidation Guide Available on the IFAP Web Site
We are pleased to announce the posting of a combined Federal Perkins Loan Assignment and Liquidation Guide. The Assignment and Liquidation Guide is now available on the Campus-Based Processing Information Page on the Information for Financial Aid Professionals (IFAP) Web site. From the IFAP Web site’s home page, click on the Processing Resources box, and then click on the Campus-Based Processing Information link. Perkins Liquidation and Assignment information is highlighted in an orange box on the right side of the page. Note: We encourage schools to bookmark the Campus-Based Processing Information Page for easy reference.
The Assignment and Liquidation Guide has been restructured. It now includes information about the assignment process as well as detailed information about the required processes for the liquidation of a school's Federal Perkins Loan (Perkins Loan) portfolio and Perkins Loan Revolving Fund (Fund) when a school decides to end its participation in the Perkins Loan Program. In addition, we have included information about two key processing changes:
Perkins Loan Assignment System (PLAS) – As explained in a September 21, 2015 Electronic Announcement, PLAS allows schools to submit Perkins Loan assignments electronically. The system is found at https://efpls.com.
Online Perkins Liquidation Module in the eCampus-Based (eCB) System – We have implemented changes to streamline the Perkins Loan liquidation process for schools and to provide an accessible tracking system for both schools and the Department of Education (the Department) to view and follow through the eventual closeout of a school’s Perkins Loan Program. Using this new functionality, schools will be guided through the liquidation and closeout process.
Schools are now required to utilize the eCB System to notify the Department of their intent to liquidate and begin the liquidation process. To get started, a school would log in to the eCB System and select “Perkins Liquidation” from the menu choices on the left. Click on “Intent and Close-out Form” and follow the on-screen instructions.
Other key features of the Perkins Liquidation Module include:
The determination of the Federal and Institutional shares of the remaining cash in the Fund is now calculated as part of the Perkins Liquidation Module. Schools are given the opportunity to update the cash on hand amount prior to the calculation. The calculation may include a liability for any amount of loans a school must purchase.
The eCB System will post the Federal share amount owed to a school’s self-service page in the eCB System with instructions for remitting payment to the Department.
Once the Federal share amount has been received by the Department, schools will submit final FISAP data for the Perkins Loan Program in the new module.
More information on the new processes can be found in the Assignment and Liquidation Guide.
If you have questions regarding the Perkins Assignment and Liquidation Guide, contact the 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). You may also e-mail CBFOB@ed.gov.