Perkins Loan Cancellations

 

To reimburse institutions for their share of loans canceled for Perkins Loan recipients who enter certain fields of public service and to restore to institutional revolving funds the full amounts of Direct and Federal Perkins Loans canceled for certain types of teaching service, Head Start service, military service in areas of hostility, law enforcement or corrections officer service, service as a nurse or medical technician, service to certain types of high risk children, and volunteer service.

Deleted 01/15/2013 (Archived.) 84.037 Agency: Department of Education
Office: Office of Student Financial Assistance Programs Direct Payments for Specified Use; Direct Payments with Unrestricted Use Not Applicable. Higher Education Act of 1965, as amended., Title IV, Part E. Higher education institutions (public, other nonprofit, postsecondary vocational and proprietary) meeting the eligibility requirements may apply. For Federal Perkins and National Direct Loan borrowers with loans made on or after July 23, 1992, and for Federal Perkins National Direct and Defense loan borrowers with an outstanding balance as of October 7, 1998, on loans made before 7/23/92. Loan cancellation is available for service as a full-time teacher in a designated elementary or secondary school having a high enrollment of children from low-income families; as a full-time staff member in a Head Start Program; as a member of the Armed Forces (in an area of hostilities); as a volunteer in the Peace Corps or ACTION programs as a full-time law enforcement officer or corrections officer serving local, State, or Federal agencies; as a full-time special education teacher, including teachers of infants, toddlers, children, or youth with disabilities in a public or other nonprofit elementary or secondary school system, or as a full-time qualified professional provider of early intervention services in a public or other nonprofit program under public supervision; as a full-time teacher of mathematics, science, foreign languages, bilingual education, or any other field of expertise that is determined by the State education agency to have a shortage of qualified teachers; as a full-time nurse or medical technician; or as a full-time employee of a public or private nonprofit child or family service agency that is providing or supervising the provision of services to high risk children and their families from low-income communities. Cancellation provisions are different for loans made before July 23, 1992. Cancellation certificates require documenting public service. This program is excluded from coverage under OMB Circular No. A-87. Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372. This program is excluded from coverage under OMB Circular No. A-102. OMB Circular No. A-110 applies to this program. In case of loans canceled under provisions of the National Defense Education Act, the institution receives funds from the Department of Education equal to the institutional contribution of the amounts canceled; for loans canceled pursuant to Title IV, Part E, of the Higher Education Act, the institution receives funds from the Department of Education to restore the full amount canceled. No application form is required. Reimbursements are made annually upon acceptance of the institution's Fiscal Operations Report. Oct 01, 2009 Deadlines are specified on application notices (usually October 1). Reimbursements are made upon acceptance of the Fiscal Operations Reports. Not Applicable. Not Applicable. Not Applicable. To reimburse institutions for their share of loans canceled for Perkins Loan recipients. A Fiscal Operations Report is submitted by each institution at the close of each award year (June 30). No cash reports are required. No progress reports are required. No expenditure reports are required. No performance monitoring is required. This program is excluded from coverage under OMB Circular No. A-133. Institutions must have a nonfederal audit done on at least an annual basis at its own expense. Audits may also be performed at Government expense by the Department of Education's Office of the Inspector General as often as its time schedule will allow or when deemed necessary by the Secretary. Records pertaining to the eligibility and repayment history of each loan recipient must be retained by the institutions for three years after the final repayment or cancellation occurs or until the loan is assigned. An institution must keep other records for a period of three years following the institution's submission of its Fiscal Operations Report for an award year or until final resolution of an applicable audit, whichever is later. Statutory Formula: Title IV.
Matching Requirements: Under the National Defense Education Act, as amended, payments are based on ratio of institutional matching monies to total loan amount. The payment replaces institutional funds (not less than one-tenth of loan) which were canceled for teaching and/or military service. For loans canceled pursuant to the Higher Education Act, the full amount canceled for teaching, Head Start, military, volunteer, law enforcement or corrections officer, nurse or medical technician, and child or family service agency is restored to the fund at the institution.
This program does not have MOE requirements. Reimbursement takes place upon acceptance of an annual Fiscal Operations Report. See the following for information on how assistance is awarded/released: Contact the program office for this information. See Regional Agency Offices. Regional Administrator for Student Financial Assistance in the appropriate Regional Office. See Appendix IV of the Catalog. Federal Student Aid Information Center Federal Student Aid (FSA), Department of Education, 400 Maryland Avenue, S.W., , Washington, District of Columbia 20202 Phone: (800) 433-3243 http://www.ifap.ed.gov; www.studetaid.gov 91-0200-0-1-502. (Direct Payments for Specified Use) FY 09 $67,164,000; FY 10 $0; FY 11 $0 Not Available. 34 CFR 674; Student Guide, no charge; Student Financial Aid Handbook, no charge; notification to Members of Congress, list of grantees published annually or as required, no charge; Federal Needs Analysis Methodology Booklet, no charge; Verification Handbook, no charge; training materials, no charge. Not Applicable.