Posted Date: May 24, 2019

Subject: Federal Perkins Loan Program – Delay of Revolving Fund Distribution of Assets

Institutions were notified about the capital distribution (Distribution of Assets) of the balance of an institution’s Perkins Loan Revolving Fund (Perkins Fund) process and formula in a July 11, 2018 Electronic Announcement: Perkins Loan Program – Federal Perkins Loan Revolving Fund Distribution of Assets and Timelines for 2018–19.

The Department of Education (the Department) has decided not to require a distribution of assets from the institution’s Perkins Fund for the 2018–19 Award Year. As announced at the Federal Student Aid Conference in November 2018, the Department is continuing to explore options to reimburse institutions for their Federal Perkins Loan service cancellations. Therefore, institutions are not required to return the federal share of their Perkins Fund to the Department and should not remove the institutional share from their Perkins Fund and return it to their institution.

Consequently, institutions should not report repayment of any federal share or institutional share in its next Fiscal Operations Report and Application to Participate (FISAP) due October 1, 2019. The amounts in both the “Repayment of Fund capital to federal government” in Part III, Section A, Line 28 and “Distribution of excess/liquid fund capital” in Part III, Section A, line 30.2 should be the same amounts as the institution reported on the FISAP submitted by October 1, 2018. Note: Institutions that have already returned the federal share of their Perkins Fund to the Department and removed their institutional share from the Perkins Fund for the 2018–19 Award Year should report these repayments on the FISAP.

Contact Information

If you have questions about the information in this announcement, contact the COD School Relations Center at 1-800-848-0978. You may also email [email protected].

Publication Date: 5/28/2019