Perkins Loan Closeout – Assignment Extension
As part of the wind down of the Perkins Loan Program, the Department of Education (ED) requires institutions to assign to the Department all Perkins Loans that have been in default for more than two years. Unless the school has documentation that these borrowers are making payments toward their Perkins loan debt, you are required to assign all Perkins Loans in default for more than two years to the ED. The previous deadline of June 30, 2022, has been extended to June 30, 2023 .
ED provides guidance on the Perkins loan assignment process in the Perkins Assignment and Liquidation Guide. ED will provide a school with the reason why any loan is rejected for assignment. If the school can resolve that issue(s), the loan can be resubmitted for assignment. In instances when an issue cannot be resolved and assignment is not possible, the school must purchase that loan.
Federal regulations state that ED may require a school to reimburse its Federal Perkins Loan Program Fund for the entire amount of the outstanding principal balance, plus any accrued interest on loans ED determines to be unenforceable.
ED reminded schools that although the Perkins Loan Program is winding down, they remain obligated to ensure all collection procedures, outlined in the regulations, are being followed.
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IMAGES
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COMMENTS
The Federal Perkins Loan Program Assignment and Liquidation Guide (Guide) is a comprehensive publication that provides information and procedures on the assignment process of Federal Perkins, National Direct, and National Defense Loans (Perkins Loans) to the U.S. Department of Education (the
The Assignment and Liquidation Guide (Guide) has been updated to reflect necessary changes due to updated address information for the Federal Perkins Loan Servicer, ECSI, as a result of their recent move to a new office location.
It offers enhanced clarity on the appropriate channels for sending borrower payments for loans accepted for assignment by the Department, and comprehensively elaborates on loan purchasing procedures.
ESI’s Perkins Loan Assignment System (PLAS) is used to electronically submit assignments under the Federal Perkins Loan (Perkins Loan) Program to the Department of Education (the Department). Perkins Loan assignments may also include National Direct Student (NDSL) and National Defense Student Loans (Defense Loans).
Schools have the option to utilize the Department’s new Perkins Loan Assignment System (PLAS) to submit assignments electronically. The electronic option allows schools to send multiple loans in a batch process or individual loans through an online, web-based version of this form.
the closeout process through eCB, the Perkins Loan Assignment System (PLAS) allows schools to submit their assignments electronically, further reducing the amount of time it takes to process assignments.
Search, view, and edit submitted loan assignment information. View a list of reports pertaining to accepted and rejected Perkins Loans that are listed in the ECSI Federal Perkins Loan Servicer loan servicing system.
Federal Perkins Loan Program Assignment Form – General Instructions The Department of Education (the Department) is authorized to accept Federal Perkins Loan (Perkins Loan) assignments under Section 463(a)(5) of the Higher Education Act of 1965, as amended [20 U.S.C. 1087cc]. No assignment of a Perkins Loan, a National Direct Student Loan
Though the June 30, 2023 deadline has passed, institutions must continue to show progress in assigning past-due loans. A school may assign any Perkins Loans (non-defaulted or defaulted) to ED at any time during the program year. This guide explores the assignment and liquidation processes.
The previous deadline of June 30, 2022, has been extended to June 30, 2023. ED provides guidance on the Perkins loan assignment process in the Perkins Assignment and Liquidation Guide. ED will provide a school with the reason why any loan is rejected for assignment.