The Federal Perkins Loan Update session at the 2016 NASFAA National Conference contained a series of questions and answers commonly asked by schools. Are you aware of the correct answers to these questions:
Q: Is a student who received a Federal Perkins Loan as a new borrower ever considered to be a current borrower?
A: Yes, if “the student receives another Perkins in either a subsequent year or when the institution awards a new Perkins Loan... Once the undergraduate borrower has received his first Perkins Loan at an institution and continues to have a balance on his Perkins Loan, he would be considered a current student for the purposes of awarding additional Perkins Loans.”
Q: A student’s parents have been denied a PLUS Loan. Must the institution include the amount of the additional Direct Unsubsidized Loan in calculating the student’s financial need if awarding a Federal Perkins Loan to a new borrower?
A: “Yes. This student’s eligibility would include the additional Direct Unsubsidized funds that are received as a result of a parent’s denial of a PLUS Loan.” This would include a situation where the student’s Federal Perkins Loan has disbursed in full before the denial was received.
Q: During the award year, a student advances to a new grade level. Must the amount of the Federal Perkins Loan be redetermined because of his increased eligibility to borrow Direct Subsidized and Unsubsidized Loans?
A: “Yes. The annual maximum Direct Subsidized and Direct Unsubsidized Loan eligibility for which the student is eligible must be considered in determining the student’s eligibility for a Perkins Loan."
“An institution may be required to reduce a Perkins Loan that has already been disbursed because the student’s Direct Loan (subsidized and/or unsubsidized) eligibility increased.”
Q: A student who has received a Federal Perkins Loan completes a bachelors degree. He enrolls as a graduate student at the same institution and in the same program in which he received his bachelors? Under that circumstance, can the student receive a Federal Perkins Loan as a graduate student?
A: “No. A graduate student can receive a new Perkins loan only if the student:
Publication Date: 8/10/2016