ACE Urges Campus Presidents to Contact Congress on Perkins Cancellations Reimbursement Issue
By NASFAA's Policy & Federal Relations Staff
The American Council on Education (ACE) sent a notice to college presidents yesterday, urging them to reach out to elected officials and the Department of Education (ED) related to unreimbursed Perkins Loan cancellations. For several months NASFAA and ACE have been working together to ensure that schools get reimbursed by ED for the institutional share of their unreimbursed Perkins cancellations. ED has not reimbursed institutions for cancellations since fiscal year (FY) 2010.
NASFAA and ACE sent two separate letters to ED on this issue, asking it to reimburse institutions, or at a minimum, delay requiring institutions participating in the Perkins loan program to return any funds until the issue of cancellation costs is resolved, which would have the added benefit of avoiding any administrative difficulties of multiple exchanges of payments between schools and ED. To date, ED has not responded to these letters, and timing is of immediate concern as ED has said it intends to begin recalling Perkins funds in December of this year.
The collective amount owed to institutions for reimbursements is significant, and we encourage you to work within your institution to reach out to members of Congress and ED to request that ED delay the recalling of funds until the issue is resolved. For additional information on this issue, including a tool to help you calculate how much your school is owed by the federal government, please visit this resource page.
Please contact [email protected] with any questions or concerns.
Publication Date: 11/21/2018
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