Must We Reimburse Our Perkins Fund For Lost Interest If We Extend the 0% Interest Benefit To Our Perkins Borrowers?
No. According to guidance NASFAA has received from the U.S. Department of Education (ED), if your institution chooses to extend the zero percent (0%) interest benefit to institutionally held Federal Perkins Loans, the institution does not need to reimburse its Perkins Revolving Fund for the lost interest. The option to offer zero percent interest until September 30, 2020 is not an incentive repayment plan created by the institution under 34 CFR 674.33(f).
Both payments and interest are automatically suspended on all federally held Perkins Loans from March 13, 2020, through September 30, 2020. Schools that hold and service Perkins Loans are allowed to choose to offer the zero percent interest and suspension of payments from March 13, 2020 through September 30, 2020. Reference the April 3, 2020 Electronic Announcement.
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Publication Date: 5/21/2020