Skip to content Menu

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 remove and "return" the institutional share of the revolving fund to the school. 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

Director, Student Financial Services and Educational Programs

202.861.2505


Related Content

Second Round of Emergency Grants to Students Will Require 1098-T Reporting

A recent IRS notice requires that certain student grant funds provided under the stimulus bill passed in late 2020 will need to be reported on Forms 1098-T.

ED’s FSA Partner Connect Sets March Debut Date

The portal, expected to be available on March 28, will provide easier access to more than 15 existing FSA websites currently used by partners, including higher education institutions, state agencies, third-party servicers, private collection agencies, and loan servicers. It also will replace the Information for Financial Aid Professionals (IFAP) website.

IRS Revises 1098-T Guidance on Emergency Grants to Students

Following advocacy from NACUBO, the IRS has clarified that colleges and universities will not need to separately track or note emergency grants to students for purposes of 2021 Form 1098-T reporting, nor should they issue Forms 1099-MISC.