ED Will Delay the Collection of Perkins Excess Liquid Capital

September 11, 2017

Written by Greg Marak (gmarak@wpllc.net)

The Department of Education’s Office of Federal Student Aid announced that it will delay the collection of Excess Liquid Capital (ELC) from the Perkins Loan Revolving Fund until after the eCampus-Based system has converted to the Common Origination and Disbursement (COD) platform in 2018. The announcement indicates institutions that have ELC in their Revolving Fund will be notified about the process for requesting an adjustment and returning the Federal share in early 2018.

The announcement reminds institutions that if they estimate a returning ELC indicated on the worksheet would create a shortfall in funds available for their Perkins Loan commitments through June 30, 2018, they may request an adjustment to its ELC determination after considering the institution’s estimated collections. Institutions may request an adjustment electronically in the new system.

Under current law, Perkins Loan funds must be first disbursed by September 30, 2017 in order to award the student their full 2017-18 Perkins Loan.

The Department’s full announcement is available online.  Additional information on integrating the e-Campus-Based system with COD is also available online.