NASFAA Mention: Education Department Does the Right Thing in Reimbursing Colleges for Canceled Perkins Loans

"It was a long-running federal public policy question that could have ended badly for many colleges and universities. Were they going to owe tens of millions of dollars to the Treasury as the Department of Education (ED) wound down the now-defunct Perkins Loan program?" the American Council on Education writes in its Higher Education Today blog.

"Happily, the answer is no. But the path to getting to the good outcome announced earlier this month by Secretary of Education Betsy DeVos wasn’t preordained or simple. ACE and the National Association of Student Financial Aid Administrators (NASFAA) spent the better part of a year working together with the department to achieve the desired result.

... We need to acknowledge the department’s willingness to work with the higher education community, and in particular NASFAA, to find a mutually-agreeable solution. ED recognized the scope and seriousness of the issue, and, as a first step, delayed the start of its liquidation process for more than a year. The path forward that ED has laid out shows we can work together to find solutions to seemingly intractable problems.

Instead of being forced, wrongly, to send millions of dollars to the federal treasury, schools will have more resources to fund student aid and enhance their educational programs."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

 

Publication Date: 9/30/2019


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