OFSA is Concerned about Level of Perkins Lending

COHEAO was asked to spread the word:  Gail McLarnon with the U. S. Department of Education announced at the COHEAO Mid Year Conference in St. Louis last month that the Office of Federal Student Aid is concerned that some schools are not making Perkins Loans or are not lending as much as they could.  ED wants to know why schools are not lending out this money.  Some of the reasons suggested were that schools are concerned that the program is going to be eliminated or they are waiting for their cancellation funds to be replenished.  The expectation from FSA is that schools will actively make Perkins Loans or liquidate from the program.   They are monitoring the situation and will start contacting schools to advise them that they have either to lend their available Perkins money or give it back. 

The Perkins Student Loan Program is reauthorized until October 2014 with an automatic one year extension after that.  We are  working hard in D.C. to extend this date in the next HEA Reauthorization which is due to come up in the next Congress 2013-14.  We have at least 4 more years to continue to lend out Perkins Loan money to the neediest of students.  As they say, “business as usual.”  So please pass the word to make sure all possible Perkins money is being used for its intended purpose – to make higher education possible for students with financial need.  

Please contact Wes Huffman at the COHEAO office if you have any questions or comments.