Skip to content Menu

The expiration of the Perkins Loan Program will impact financial accounting and reporting at higher education institutions, whether they follow Financial Accounting Standards Board (FASB) or Governmental Accounting Standards Board (GASB) standards. Consequently, NACUBO’s Advisory 18-03, Perkins Loan Program Close-Out, has been updated to address FASB and GASB matters.

Originally released in July, NACUBO’s advisory report includes considerations for deciding whether to continue to service Perkins Loans or transfer them to the federal government and the steps required to execute either option. It now also includes information on circumstances that impact financial reporting. The updated report contains a dedicated appendix for independent and public institutions.

For institutions that follow FASB, financial reporting will depend on whether an operating measure is displayed on the Statement of Activities. For institutions that follow GASB, financial reporting depends on a combination of the following: whether the Federal Capital Contribution is considered a liability or part of net position, the requirements in Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions, and materiality.

An Excel workbook is also available to quantify the costs and benefits of retaining an institution's Perkins portfolio.

Contact

Sue Menditto

Senior Director, Accounting Policy

202.861.2542


Related Content

FASB Issues Proposed Guidance on Crypto Assets

FASB recently issued a proposed Accounting Standards Update addressing the accounting for and disclosure of crypto assets.

Department of Education Seeks No-Cost Extension for HEERF Funds

The Department of Education will make a no-cost extension form available to grantees needing up to an additional 12 months to spend remaining HEERF balances.

NACUBO Student Financial Services Policies and Procedures Report Released

The new report, supported by TouchNet, provides insight on SFS operations during FY22 at 341 colleges and universities, including services offered, tuition and fee structures, and collections and write-off policies. It also includes new information on using HEERF allocations to forgive debt associated with registration and transcript holds.