The Direct PLUS Loans available to parents and graduate students have an even higher rate, at 7.54%, as well as a steep one-time loan fee of 4.228%. Neither the deferment nor the grace period is counted as part of the 10-year repayment period. If you elect to conduct exit counseling through interactive electronic means, you must take reasonable steps to ensure that each student borrower receives the required materials and participates in and completes the exit counseling. The Department strongly encourages institutions to return the federal share through the G5 miscellaneous refund functionality. Using the Federal Perkins Loan Assignment System Page 9 of 102 6. You have the right to defer payments on your Federal Perkins Loan if you are attending an eligible postsecondary school at least a half-time student, and in some cases if you are: participating in a rehabilitation training program; participating in an internship or residency program in dentistry; seeking but unable to find full-time employment; receiving payment from a federal or state public assistance program; repaying federal education loans that exceed or for which the payments exceed certain specified amounts; or. Schools that have yet to receive an Official Liquidation Completion letter from the Department at the time annual FISAPs are due to be submitted to the Department must report Perkins data on its annual FISAP. For more information on processing Perkins portfolios, go to: https://fsapartners.ed.gov/knowledge-center/topics/campus-based-processing-information. The Campus-Based System in COD guides schools through the liquidation and closeout process. No assignment of a Perkins Loan, a National Direct Student For more details, see the Perkins Assignment and Liquidation Guide section, below. WebUnder certain conditions, a Perkins loan can be discharged based on a total and permanent disability. Graduate and professional students can get Direct Unsubsidized Loans, but at a rate of 6.54%, compared to 4.99% that undergrads have to pay for academic year 2022-2023. You are responsible for notifying the school before the due date of any payment that you cannot remit. Final activity consists of assigning any remaining loans with outstanding balances to the Department or reimbursing the Fund for the purpose of purchasing any loans that are not accepted by the Department, and confirming that the distribution of the final Fund capital (current cash) has been made. A password is sent from the same email address separately in order to open the reports. There is a chart that summarizes supporting documentation that schools must provide when assigning Perkins Loan to the Department in Chapter 5. Upon acceptance of the account, the institution must issue a check to the Department, including the borrower and loan information noted previously so that the borrower records can be updated to reflect payment. Once the Federal share amount has been received by the Department, schools will submit final FISAP data for the Perkins Loan Program. The Direct Loan Consolidation Center will not expect payment from the loan holder. A school should not contact the Department to request the return of a submission because a borrower has made a payment to the school. Field 21 and Field 22 must always be reported as 0. The Department may require your school to reimburse its Perkins Loan fund for any outstanding balance on an overpayment or a defaulted loan for which your school failed to record or retain the promissory note, record disbursements, or exercise due diligence. The Borrower Customer Service telephone number is 866-313-3797. Perkins LiquidationUse this type when closing out your Perkins Loan Fund and returning the Federal Share at the end of the schools liquidation of the Distribution of Assets from the Revolving Fund. Perkins Loans were low-interest, long-term loans made through school financial aid offices to help needy under- graduate and graduate students pay for postsecondary education. Either shortly before the borrower ceases at least half-time study or during the exit interview, schools must disclose critical repayment information to the borrower in a written statement. A post-deferment grace period is the period of six consecutive months that immediately follows the end of a period of deferment and precedes the date on which the borrower must resume repayment on the loan. WebThe federally-backed loans are designed to bride the affordability gap for FAFSA filers whose EFC is zero. If your school exercises the minimum monthly payment option, you must inform the borrower that if he or she wants your school to coordinate payments with another school, he or she must request such coordination. Although the program has ended, 1.6 million borrowers still owe $4.7 billion in Perkins Loans as of mid-2021. This this is typically due to the If the borrower has made a reasonable effort to resolve the problem through normal processes and has not been successful, he or she should contact the FSA Ombudsman. Schools should request a reconciliation report from NSLDS to ensure the schools records are consistent with NSLDS, reconcile any discrepancies, and update NSLDS accordingly. Suggest debt-management strategies that would facilitate repayment. information collected during exit loan counseling as required by the Perkins Loan regulations. This ensures the funds are properly applied under the Program and will be identified for nonliquidating schools as Distribution of Assets or liquidating schools as Liquidation in our system. Other income-driven repayment plans already offer a $0 monthly payment for some borrowers. The school must schedule the Perkins closeout audit and provide a copy of the audit to Department when completed. The MPN for the Perkins Loan Program is a promissory note under which the borrower received loans for either a single award year or multiple award years. Also taken into consideration is any Federal Capital Contribution (FCC) that has been previously returned by the institution to the Department, and any Institutional Capital Contribution (ICC, also known as nonfederal share) that was previously returned to the institution. Using a sensitivity analysis of grant-to-loan conversions, we estimate that for the 2020 cohort, a one percentage point reduction in the grant-to-loan conversion would result in a transfer from the Federal Government of $727,034, since each grant that is not converted to a loan where the student is obligated to pay it back remains a grant. The Department recognizes that a school may have exhausted all of its available collection options on some of its defaulted Perkins Loans and encourages schools to assign these loans to the Department so additional steps can be taken to recover the loan funds. Each individual learning institution serves as its own Perkins lender, so not all schools participate. The Department began collecting the federal share of schools funds following the submission of the 20192020 FISAP. The entire amount of the borrower payment must be forwarded to the Department. Its helpful to have the student compare these costs with the estimated monthly loan payments and to emphasize that the loan payment is a fixed cost, like rent or utilities. For more on default, see Chapter 5 of this Volume. For more information on cancellation, see Chapter 4 of this Volume. This is the official Acceptance Report notice and should be retained in the schools records. The acceptable values for the Payment Rating a school or servicer must enter in Field 17B are: Schools can complete the Perkins Loan Assignment Form manually or online using the PLAS. Finally, a defaulters federal and state tax refunds may be seized and wages garnished, and the borrower loses eligibility for any further funding from the FSA programs. Perkins liquidation and assignment information is highlighted in the right side of the page. More information is available at: https://studentaid.gov/manage-loans/repayment/plans. Borrowers should be given at least 30 days notice. When a school liquidates its Perkins Loan portfolio, it must assign the remaining loans with outstanding balances to the Department for collection. In Field 17A the school or servicer should report the two digit code 05 (Transferred) AND enter the Special Comment Code AL (Student Loan Permanently Assigned to Government). Interest rates currently stand at 5% on Perkins Loans, and award amounts are tied to available funding on your campus. It is the school that decides the money that one can get from this loan. THE FEDERAL PERKINS loan was an appealing option for undergraduate and graduate students who showed exceptional financial need when looking to pay for school. Advantages and Disadvantages of Subsidized Federal Loans. If DLCS makes the consolidation loan, you will receive the amount you indicated on the LVC plus interest. WebALERT: There are 2 PPP loans for a total of $1.67M in our database for businesses with the name "Professional Employment Pdc PLLC" in Provo, UT. Courier services do not deliver to postal boxes. What you need to know about your federal student loan benefits. See the EA of May 3, 2019 on the Updated Federal Perkins Loan Assignment and Liquidation Guide for more detail. Final activity consists of assigning any remaining loans with outstanding balances to the Department or reimbursing the Fund for the purpose of purchasing any loans that are not accepted by the Department, and ensuring that the distribution of the final Fund capital (current cash) has been made. You should have reported the following information: the amount and date of each disbursement; repayment information and collection of the loan until the loan is paid in full; and. view reports of Perkins Loans that have been accepted or rejected for assignment. A school must continue to file its FISAP annually until it can report all final activity. Once the assignment of your Federal Perkins Loan(s) to the Department has been completed, ECSI (the Federal Perkins Loan Servicer) will provide you with information on where to send your payments and how to contact them if you need assistance. The Federal Perkins Loan Extension Act of 2015 prohibits making new Federal Perkins Loans after September 30, 2017. The Campus-Based section of the COD System will post the Federal share amount owed to a schools selfservice page in the eCampus-Based section of the COD System with instructions for remitting payment to the Department. These reports can be viewed online or printed from PLAS. Each payment submission must clearly identify the borrowers full name, Social Security number, and the type of loan to which the payment is to be applied. Schools with active Federal Perkins Loans (including National Direct Student Loans and National Defense Student Loans) are required to update data on loans to NSLDS at least monthly. The counselor must further emphasize that the borrower is obligated to repay the full amount of the loan even if the borrower has not completed the program, is unable to obtain employment upon completion, or is otherwise dissatisfied with the schools educational or other services. Retain a copy of the completed and signed forms for the users records. To do this, use the Data Provider Instructions (DPI) as of June 25, 2018, available on IFAP in the iLibrary section under reference materials. The DPI has instructions on reports, file layouts, and steps to submit and extract data from NSLDS. The regulations governing TPD discharges of Federal Start Printed Page 43557 student loans and TEACH Grant service obligations are contained in 34 CFR You must also assign all loans that have been in default for two or more years. You must have a coordinating official who is responsible for ensuring that such information is shared among the offices that need it. All returns of funds to the Direct Loan Consolidation Center must include identifiers for each borrower and the specific loan type or types for which funds are being returned. This announcement is a follow-up to the Aug. 27, 2021 Electronic Announcement (EA ID: General 21-53) announcing that all institutions are required to assign to the U.S. Department of Education (the Department) loans made under the Federal Perkins Loan (Perkins Loan) Program that have been in default for more than two years; and to Describe the consequences of default, including adverse credit reports, federal offset, and litigation. For NSLDS assistance, call 1-800-999-8219 or send an email to NSLDS@ed.gov. Questions about the status of assignment submissions or the correction of pending assignments should be directed to ECSI Federal Perkins Loan Services, at: All emails about accounts submitted for assignment must be encrypted and must include your schools name and OPEID. If a payment is received, the school or its servicer should deposit the funds immediately into its Perkins Program Fund and await official notification that the loan has been accepted for assignment. In order to initiate a refund in G5, the Payee user must have already entered refund banking information under Payments > Refund Bank Account Maintenance, even if there is already a bank account connected to the Payments functionality. 1087cc]. Defaulters often find that repayment schedules for loans that have been accelerated are more stringent than the original repayment schedule. The Borrower Login page is the gateway to access the information provided in the My Account portion of our web site. If individual interviews are not possible, group interviews are acceptable. You have 10 days from the date of receipt to complete the LVC and return it to DLCS. Kansas City, MO 64106-2147. As published in the Federal Register notice on Jan. 31, 2022 (87 FR 4871), all schools that participate in the Federal Perkins Loan (Perkins Loan) Program, including schools that are in the liquidation process and have yet to receive an official liquidation completion letter from the U.S. Department of Education (the Department), must update Weboutstanding Federal Perkins Loans made before October 1, 1992 that included the $30 minimum payment option) or its bimonthly or quarterly equivalent. After returning the original note, your school must keep a copy of the note for at least three years after the date the loan was paid in full. The Department published a final rule on In order to securely identify yourself, you will be requested to provide the following information which was provided to you via U.S. Mail at the time ECSI began servicing your Federal Perkins Loan: The appropriate school official and the student should sign or initial all approved changes in the note. When a student takes out a loan, they typically have six months after graduation to start the repayment process. You are responsible for obtaining, completing, and returning to the school for processing any forms required to apply for forbearance, deferment, or cancellation benefits. If you qualify, use this form to request a discharge of your loan. A school can log into COD and begin the liquidation and closeout process at any point during the program year. 34 CFR 674.50 (g) of the Federal Perkins Loan Program regulations states that the Secretary may require that the institution reimburse its program Fund for the Department of Education.. The Perkins Loan Assignment System allows authenticated users to: submit multiple loans as a batch file or submit individual loans; securely upload supporting documentation such as promissory notes, payment histories, etc. Perkins Excess CashUse this type when returning the Federal Share of the distribution of assets. Schools assigning loans should keep in mind that: All Perkins loans that have been accepted for assignment by the Department are assigned without recompense. A school should not contact the Department to request the return of a submission because a borrower has made a payment to the school. If a school does not have a valid promissory note or other written records (disbursement records or other proof the borrower received the loan), it may have to repay to its Perkins Loan Fund any amounts loaned, as well as any Administrative Cost Allowance (ACA) claimed on those amounts. A school must continue to file its FISAP annually until it can report all final activity. Inform the student as to the average anticipated monthly repayment amount based on the students indebtedness or on the average indebtedness of students who have obtained Federal Perkins Loans for attendance at the school or in the borrowers program of study. Borrowers should first attempt to resolve complaints by contacting the school, company, agency, or office directly involved. A school/servicer should have reported every Perkins Loan to at least one of the three national credit bureaus with which the Department has an agreement or to a local credit bureau that is affiliated with one of those three credit bureaus. You must assign any loan that does not have an acceptable collection record. Schools may be directed to report final FISAP data using the Phase 4 of the Perkins online closeout form through the Campus-Based COD system online. The loan is made with government funds, and your school contributes a share. NSLDS data should match your schools records. Your monthly payments will be 10 percent of discretionary income, but never more than you would have paid under the 10-year Standard Repayment Plan. In order to properly track borrowers status, your school must have a process for coordinating between the offices which monitor enrollment status, the financial aid office, and the office which manages your Federal Perkins Loan portfolio (and/or any third-party services which man- age the portfolio). A school must complete its NSLDS reporting requirements in accordance with the instructions in the NSLDS Enrollment Reporting Guide and the Perkins Data Provider Instructions. Under the SAVE plan, monthly payments can be as small as $0. Ultimately, the total amount of loans and the number of borrowers the Department has in NSLDS should reconcile with what the school reports on its final FISAP. Section 464(g)(1) of the HEA authorizes the discharge of a Perkins Loan Program loan based on school closure. WebHow Do I Find? The authority to make new Perkins Loans provided under the Perkins Loan Extension Act of 2015 has expired. Note: We encourage schools to bookmark the Campus-Based Processing Information page for easy reference to all information regarding Perkins. Your school may employ third-party servicers to provide Perkins Loan borrowers with exit interviews. For example, the office that tracks enrollment status must alert the coordinating official when a students enrollment status drops below half time. (2) (i) A separate bank account for Federal funds is not required, except as provided in paragraph In order to initiate a refund in G5, the Payee user must have already entered refund banking information under Payments > Refund Bank Account Maintenance, even if there is already a bank account connected to the Payments functionality. If you awarded a Perkins Loan after September 30, 2017, or made a disbursement after June 30, 2018, the award or disbursement was made in error and must be corrected. If access is denied, the Institution Administrator will receive an It was a low-interest federal student loan program with a fixed 5% interest rate.