Department Announces Plans for Perkins Loans in AY 2015-2016, Dear Colleague Letter Forthcoming

December 2, 2014

Department Announces Plans for Perkins Loans in AY 2015-2016, Dear Colleague Letter Forthcoming

Prepared by:  Wes Huffman (whuffman@wpllc.net)

Speaking today at this week’s Education Department Federal Student Aid Conference, Lynn Mahaffie, Acting Assistant Secretary at the Department of Education’s Office of Postsecondary Education (OPE), announced that institutions can make second disbursements of Perkins Loans for Academic Year 2015-2016 if the first disbursement is made before October 1, 2015.  Mahaffie noted that unless Congress acts to extend the Perkins Loan Program, which Congress is considering, the Perkins Program expires at the end of the current federal fiscal year, September 30, 2015.

Mahaffie also indicated the Department is considering how it may be possible for continuing students who received Perkins Loans to receive loans in the future to help them complete their studies.  She provided no other information on that aspect, but said that the Department will provide details in a Dear Colleague Letter they expect to publish by early January.  The Perkins Loan Program is currently authorized through FY2015 via the Higher Education Act (HEA).  Congress may extend the authorization of the program as soon as next year, which would render this guidance moot.  However, Mahaffie’s comments made clear that in the absence of Congressional action, schools will be able to award Perkins Loans at least for all of Academic Year 2015-2016, provided the first disbursement is made before October 1, 2015.