Crunch Time for Perkins Loan Program

"As the expiration date for the Perkins Loan program approaches this week, it's unclear whether the program will survive to the next financial aid cycle -- despite bipartisan support for legislation in both chambers of Congress that would extend the program to 2019," Inside Higher Ed reports.

"On Wednesday, a coalition of higher ed groups called on Congressional leaders to hold a floor vote on legislation for a Perkins extension this week.

If an extension does happen at all, it's likely to drag into later this fall -- congressional Republicans just announced a new tax reform push and will have priorities to tackle in the coming weeks, including confirmation hearings. That will create added headaches for financial aid offices on campuses as they sort out what award packages they can offer students for the next academic year. But a final expiration of the program would create additional uncertainties for colleges and the Department of Education. In a June letter to the department, Justin Draeger, president and CEO of the National Association of Student Financial Aid Administrators, spelled out the questions that would arise.

'While it is our strong preference that the program continue until Congress can conduct a comprehensive review of the Title IV aid programs during reauthorization of the Higher Education Act, we must take steps now to ensure a smooth and equitable close-out process in the event that the program ends,' Draeger wrote.

NASFAA's concerns include potential costs involved in close-out audits of college lending programs and whether institutions would assign existing loans to the government or keep servicing responsibilities for those loans."

NASFAA's "Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

 

Publication Date: 9/28/2017

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