ED Revises Perkins Loan Assignment Process

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August 14, 2003

The Department of Education issued a Dear Colleague Letter recently announcing changes to the process for the assignment of defaulted Federal Perkins Loans, National Direct Student Loans (NDSLs) and National Defense Student Loans (Defense) to ED for collection. This process is also used by colleges and universities to close out of the Federal Perkins Loan Program. Institutions wishing to terminate their participation are required to liquidate their Perkins Loan portfolios by assigning all outstanding loans—both defaulted and nondefaulted—to ED.

Institutions are advised to review the August 2003 Dear Colleague Letter (CB-03-12) and attachments. While institutions are not compensated for any loans assigned to ED, the procedures have been streamlined to facilitate loan assignment.

For more information, contact Laurie Quarles, senior policy analyst, at (202) 861-2543 or laurie.quarles@nacubo.org.