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Department to reimburse institutions for Perkins Service Cancellations
September 12, 2019
Your institution may be getting some money back.
In a September 10 Electronic Announcement, the Department of Education said they will be reimbursing institutions the institutional share of Perkins Loans Service Cancellations.
The absence of a Federal appropriation has prevented the Department of Education (the Department) from reimbursing institutions for their share of Perkins Loan Service Cancellations. In the announcement, the Department said it recently determined that it has the authority to reimburse institutions the institutional share of Perkins Loan Service Cancellations from the Perkins Fund.
As a result, later this year, the Department will be sending institutions participating in the Perkins Loan program a letter regarding the amount and deadlines by which the institution must return to the Department the Federal Share and remove and return to the institution the Institutional share of the Perkins Loan Revolving Fund (the Distribution of Assets). Institutions must return to the Department only the Federal share that has been requested.
The letter will also specify the amount of the institution?s reimbursement for Perkins Loan Service Cancellations. The amount an institution is reimbursed may be a partial reimbursement for the institutional share of Service Cancellations. The Department anticipates providing additional reimbursements in future years.
Institutions should not remove and return any funds to the Department or the institution until the institution has been notified to do so.