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On September 10, 2019, the Department of Education announced its intention to reimburse colleges and universities for the institutional share of Perkins Loan Service Cancellations. The announcement comes amid the wind-down process many institutions are already engaged in following the expiration of the Perkins Loan Program in September of 2017.

ED stated that it will send schools a letter by the end of 2019 with information regarding the amount of reimbursement for cancellations. In addition, this letter will outline the amount and deadline by which institutions must return the federal share. It will also notify schools about the amount and deadline by which to will remove and "return" the institutional share of the revolving fund to the share. ED noted that schools should not remove and return any funds until it directs them to do so.

This is a significant development. ED has not reimbursed institutions for cancelled Perkins Loans since FY10, often citing a lack of appropriations. However, per the notice, ED now has determined that it has the authority to reimburse schools even without federal appropriations. Some schools might only receive a partial reimbursement this year, but ED said it anticipates making additional reimbursements in the future.

Contact

Bryan Dickson

Assistant Director, Advocacy and Student Financial Services

202.861.2505


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