Perkins Loan Program Close-Out Guidance
Updated November 21, 2018
The Federal Perkins Loan Program expired on September 30, 2017 and no new disbursements were permitted after June 30, 2018. NACUBO has prepared an advisory report (available to members only) most recently updated in November 2018, to assist business officers with next steps.
Institutions must choose whether to assign Perkins Loans to the Department of Education or liquidate their revolving fund. However, when loans are assigned, ED keeps all monies collected and does not reimburse the institutional share. If an institution keeps operating the program and remits excess cash annually, on the other hand, the institution can keep its share and repurpose the funds.
Members Only
In NACUBO's advisory report (available to members only-login required), topics addressed include actions to take prior to submitting an intent to liquidate, the liquidation process, and the associated accounting entries. Additionally, an Excel workbook is available to quantify the costs and benefits of retaining an institution's Perkins portfolio.
