The absence of a Federal appropriation has prevented the Department of Education (the Department) from reimbursing institutions for their share of Perkins Loan Service Cancellations. Recently, however, the Department determined that it has the authority to reimburse institutions the institutional share of Perkins Loan Service Cancellations from the Perkins Fund. As a result, later this year, the Department will be sending institutions participating in the Perkins Loan program a letter regarding the amount and deadlines by which the institution must return to the Department the Federal Share and remove and return to the institution the Institutional share of the Perkins Loan Revolving Fund (the Distribution of Assets). Institutions must return to the Department only the Federal share that has been requested.
The letter will also specify the amount of the institution’s reimbursement for Perkins Loan Service Cancellations. The amount an institution is reimbursed may be a partial reimbursement for the institutional share of Service Cancellations. The Department anticipates providing additional reimbursements in future years.
Institutions should not remove and return any funds to the Department or the institution until the institution has been notified to do so.
We appreciate your patience as we continue to work through operational details of implementing this plan.