"The Perkins Loan Program, which expired in September 2017, provided low-interest loans for students with financial need and was funded through a partnership between the federal government and participating higher education institutions," according to the American Council on Education.
"Nearly half a million students received a Perkins loan in the last year the program was offered. These students—and others who received a Perkins loan in the past—can qualify to have their debt fully or partially cancelled, provided they work in certain public service fields such as teaching, law enforcement, or military service.
However, for the past eight years, the burden of covering the cost of these cancellations has fallen solely to colleges and universities with no assistance from the Department of Education (ED), despite a statutory requirement to do so.
ACE and the National Association of Student Financial Aid Administrators (NASFAA) sent a letter in July to Secretary Betsy DeVos about ED’s obligation to reimburse cancellation costs to eligible institutions. The associations followed up last week with a letter to Under Secretary Diane Auer Jones, outlining their concerns and requesting ED meet its obligations to reimburse institutions, which is required under federal law."
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Publication Date: 10/10/2018