Perkins Loan Closeout – Assignment Extension
As part of the wind down of the Perkins Loan Program, the Department of Education (ED) requires institutions to assign to the Department all Perkins Loans that have been in default for more than two years. Unless the school has documentation that these borrowers are making payments toward their Perkins loan debt, you are required to assign all Perkins Loans in default for more than two years to the ED. The previous deadline of June 30, 2022, has been extended to June 30, 2023 .
ED provides guidance on the Perkins loan assignment process in the Perkins Assignment and Liquidation Guide. ED will provide a school with the reason why any loan is rejected for assignment. If the school can resolve that issue(s), the loan can be resubmitted for assignment. In instances when an issue cannot be resolved and assignment is not possible, the school must purchase that loan.
Federal regulations state that ED may require a school to reimburse its Federal Perkins Loan Program Fund for the entire amount of the outstanding principal balance, plus any accrued interest on loans ED determines to be unenforceable.
ED reminded schools that although the Perkins Loan Program is winding down, they remain obligated to ensure all collection procedures, outlined in the regulations, are being followed.
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Now Available: Updated Federal Perkins Loans Assignment and Liquidation Guide
- April 25, 2024
The Department of Education has published its latest version of the Federal Perkins Loan Program Assignment and Liquidation Guide that contains important updates to reconciliation reports in NSLDS as well as procedures for submitting spreadsheets. Other changes include detailed guidelines for the new Perkins Portfolio Report (PRKPF1) and the Perkins Extract by Parameters Report (formerly called ReC005), which will help institutions process defaulted loans or during liquidation.
Read the full announcement for more details.
POSTED DATE: April 23, 2024 AUTHOR: Federal Student Aid ELECTRONIC ANNOUNCEMENT ID: CB-24-09 SUBJECT: Updated Federal Perkins Loan Assignment and Liquidation Guide Now Available
We have updated the Federal Perkins Loan Program Assignment and Liquidation Guide .
The updated Assignment and Liquidation Guide (Guide) is now available on the Campus-Based Processing Information page on the Knowledge Center . Information related to Perkins Liquidation and Assignment is prominently displayed in a designated section on the right-hand side of the page. Note: We recommend that schools bookmark the Campus-Based Processing Information Page for convenient future access.
This Guide has been enhanced to incorporate recent additions and modifications to reconciliation reports available on the National Student Loan Database System (NSLDS®) website. It furnishes detailed instructions regarding the utilization of the new Perkins Portfolio Report (PRKPF1), alongside the Perkins Extract by Parameters Report (formerly called REC005), and the procedure for the spreadsheet submittal process. This resource aids schools in leveraging NSLDS reports for reconciliation purposes during the mandatory assignment of older, defaulted loans or during the liquidation process.
In addition to the changes noted above, the Guide includes essential modifications to guidance concerning the return of funds to the U.S. Department of Education (the Department) via G5/G6. It offers enhanced clarity on the appropriate channels for sending borrower payments for loans accepted for assignment by the Department, and comprehensively elaborates on loan purchasing procedures.
Contact Information
If you have questions about the information provided in this announcement, contact the FSA Partner and School Relations Center at 1-800-848-0978. You may also email [email protected] .
If you have questions specific to NSLDS data entry, access, use, or reports, contact NSLDS Customer Support Center at 1-800-999-8219 or email [email protected] .
SOURCE: (CB-24-09) Updated Federal Perkins Loan Assignment and Liquidation Guide Now Available
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IMAGES
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COMMENTS
The Federal Perkins Loan Program Assignment and Liquidation Guide (Guide) is a comprehensive publication that provides information and procedures on the assignment process of Federal Perkins, National Direct, and National Defense Loans (Perkins Loans) to the U.S. Department of Education (the Department). It also provides schools information and ...
We have updated the Federal Perkins Loan Program Assignment and Liquidation Guide.. The updated Assignment and Liquidation Guide (Guide) is now available on the Campus-Based Processing Information page on the Knowledge Center.Information related to Perkins Liquidation and Assignment is prominently displayed in a designated section on the right-hand side of the page.
Federal Perkins Loan Program Assignment and Liquidation Guide. Document Version 1.5 Page 1 of 40 December 20, 2016 . ... the Perkins Loan Assignment System (PLAS) allows schools to submit their assignments electronically, further reducing the amount of time it takes to process assignments.
The "quick guide" is an overview of the different steps under the Perkins liquidation process and explains how schools use the functionality of the COD Web Site to complete each step of the liquidation process. Contact Information. If you have questions regarding the Perkins Assignment and Liquidation Guide, contact the COD School Relations ...
is included in liquidation guide. 29. Closing out the Perkins Loan Program ©2018 CliftonLarsonAllen LLP. Notify ED of intent to liquidate (via eCB system) Notify borrowers. ... Can still use Perkins Loan Program Assignment Form (OMB Form 1845-0048) on IFAP website. 32. Information to Enter into PLAS ©2018 CliftonLarsonAllen LLP
based-subject-updated-federal-perkins-loan-assignment-and-liquidation-guide-now-available; Assigning Loans ©2021 CliftonLarsonAllen LLP; PLAS; Create a manifest of loans to assign and attach documents electronically. Manual. Can still use the Perkins Loan Program Assignment Form (OMB Form 1845-0048) which can be found on the IFAP website.
The previous deadline of June 30, 2022, has been extended to June 30, 2023. ED provides guidance on the Perkins loan assignment process in the Perkins Assignment and Liquidation Guide. ED will provide a school with the reason why any loan is rejected for assignment. If the school can resolve that issue (s), the loan can be resubmitted for ...
April 25, 2024. The Department of Education has published its latest version of the Federal Perkins Loan Program Assignment and Liquidation Guide that contains important updates to reconciliation reports in NSLDS as well as procedures for submitting spreadsheets. Other changes include detailed guidelines for the new Perkins Portfolio Report ...
Perkins Liquidation and Assignment information is highlighted in an orange box on the right side of the page. ... If you have questions about the Perkins Loan Assignment Form, contact the Federal Perkins Loan Servicer - School Customer Service by phone at 1-844-301-2620 or by email at [email protected]. Publication Date: 1/14/2019.
As a result, students can no longer receive Perkins Loans. A borrower who received a Perkins Loan can learn more about managing the repayment of the loan by contacting either the school that made the loan or the school's loan servicer ... Link to assignment and liquidation guide in the references section. Why would a school liquidate ...
EA ID: GENERAL-21-53 on August 27, 2021 clarifying that Perkins loans which have been in default for two or more years must be assigned by June 30, 2022. This will result in larger numbers of Perkins loans being transferred from our campuses to the Department. The . Perkins Assignment and Liquidation Guide. states that when a campus assigns a ...
§The Perkins Assignment and Liquidation Guide is divided into two parts: ‒Part Iprovides schools that are not liquidating with the procedures for assigning loans to the Department ‒Part II provides information and procedures about the liquidation process §The Guide has three appendices: ‒Appendix A provides contact information.
Perkins Loan Program Assignment and Liquidation Guide are as follows: 1. We inspected the documents that the University used to notify the Department of Education of its intent to liquidate its Perkins loan portfolio. 2. We inspected all outstanding loans included within batches after the submission of the last
Assignment & Liquidation Process Review the Perkins Assignment and Liquidation Guide (available on IFAP) Schools can assign defaulted or non-defaulted Perkins loans at any time - rather than liquidating Schools can elect to complete and submit assignments either manually by paper or electronically by using the Department's Perkins
Perkins Liquidation Guide Federal Perkins Loan Assignment and Liquidation Guide now available on the IFAP website Electronic Announcement: March 30, 2016 10 Gainful Employment 11 Gainful Employment •Final rules published October 31, 2014 •Rules became effective July 1, 2015 Dear Colleague Letter GEN-15-12 12
Every loan with an outstanding balance in the Perkins Loan program must be accounted for. Consider close-out options that could benefit your higher education institution. ... The Department of Education's Assignment and Liquidation Guide can help you understand options for assigning loans with missing information. Develop an exit strategy ...
Section 668.26, and the procedures contained in the Federal Perkins Loan Program Assignment and Liquidation Guide, from the date of the University's notification of its intent to liquidate its Perkins loan program through April 6, 2017. University management is responsible for ensuring compliance with the
The Campus-Based Programs include the Federal Perkins Loan, Federal Work-Study, and Federal Supplemental Educational Opportunity Grant programs. These programs are administered through the Common Origination and Disbursement (COD) System. Operational communications and guidance specific to the Campus-Based Programs are categorized under four ...