Program Descriptions
Program Number
84.037
Title
Perkins Loan Cancellations
Federal Agency
FEDERAL STUDENT AID (FSA), DEPARTMENT OF EDUCATION
Authorization
Higher Education Act of 1965, Title IV, Part E, as amended, Public Law 103-208, 20 U.S.C. 421-429.
Status
Active
Objectives
To reimburse institutions for their share of loans canceled for Perkins Loan recipients who become teachers or who perform full-time active military service in the U.S. Armed Forces, and to restore to institutional revolving funds the full amounts of Direct and Federal Perkins Loans canceled for certain types of teaching service, Head Start service, military service in areas of hostility, law enforcement or corrections officer service, service as a nurse or medical technician, service to certain types of high risk children, and (for Federal Perkins Loans only) volunteer service.
Types of Assistance
Direct Payments for Specified Use; Direct Payments with Unrestricted Use.
Uses and Use Restrictions
None for reimbursements but restorations may be used only for loan fund purposes.
Eligibility Requirements
Applicant Eligibility
Higher education institutions (public, other nonprofit, postsecondary vocational and proprietary) meeting the eligibility requirements may apply.
Beneficiary Eligibility
For Federal Perkins and National Direct Loan borrowers with loans made on or after July 23, 1992, and for Federal Perkins National Direct and Defense loan borrowers with an outstanding balance as of October 7, 1998, on loans made before 7/23/92. Loan cancellation is available for service as a full-time teacher in a designated elementary or secondary school having a high enrollment of children from low-income families; as a full-time staff member in a Head Start Program; as a member of the Armed Forces (in an area of hostilities); as a volunteer in the Peace Corps or ACTION programs as a full-time law enforcement officer or corrections officer serving local, State, or Federal agencies; as a full-time special education teacher, including teachers of infants, toddlers, children, or youth with disabilities in a public or other nonprofit elementary or secondary school system, or as a full-time qualified professional provider of early intervention services in a public or other nonprofit program under public supervision; as a full-time teacher of mathematics, science, foreign languages, bilingual education, or any other field of expertise that is determined by the State education agency to have a shortage of qualified teachers; as a full-time nurse or medical technician; or as a full-time employee of a public or private nonprofit child or family service agency that is providing or supervising the provision of services to high risk children and their families from low-income communities. Cancellation provisions are different for loans made before July 23, 1992.
Credentials/Documentation
Cancellation certificates require documenting public service. This program is excluded from coverage under OMB Circular No. A-87.
Application and Award Process
Preapplication Coordination
This program is excluded from coverage under E.O. 12372. This program is excluded from coverage under OMB Circular No. A-102.
Application Procedure
In case of loans canceled under provisions of the National Defense Education Act, the institution receives funds from the Department of Education equal to the institutional contribution of the amounts canceled; for loans canceled pursuant to Title IV, Part E, of the Higher Education Act, the institution receives funds from the Department of Education to restore the full amount canceled. No application form is required. This program is subject to the provisions of OMB Circular No. A-110.
Award Procedure
Reimbursements are made annually upon acceptance of the institution's Fiscal Operations Report.
Deadlines
None.
Range of Approval/Disapproval Time
Reimbursements are made upon acceptance of the Fiscal Operations Reports.
Appeals
None.
Renewals
Assistance Considerations
Formula and Matching Requirements
Under the National Defense Education Act, as amended, payments are based on ratio of institutional matching monies to total loan amount. The payment replaces institutional funds (not less than one-tenth of loan) which were canceled for teaching and/or military service. For loans canceled pursuant to the Higher Education Act, the full amount canceled for teaching, Head Start, military, volunteer, law enforcement or corrections officer, nurse or medical technician, and child or family service agency is restored to the fund at the institution.
Length and Time Phasing of Assistance
Reimbursement takes place upon acceptance of an annual fiscal operations report.
Post Assistance Requirements
Reports
A fiscal operations report is submitted by each institution at the close of each award year (June 30).
Audits
Periodic audits of loan cancellation at participating institutions will be made in conformance with rules applicable to the Federal Perkins Loan Program.
Records
Records pertaining to the eligibility and repayment history of each loan recipient must be retained by the institutions for three years after the final repayment or cancellation occurs or until the loan is assigned. An institution must keep other records for a period of three years following the institution's submission of its fiscal operations report for an award year or until final resolution of an applicable audit, whichever is later.
Financial Information
Account Identification
91-0200-0-1-502.
Obligations
(Direct payments) FY 07 $65,471,000; FY 08 est $64,327,000; and FY 09 est $0.
Range and Average of Financial Assistance
Not currently available.
Program Accomplishments
Not currently available.
Regulations, Guidelines and Literature
34 CFR 674; Student Guide, no charge; Student Financial Aid Handbook, no charge; notification to Members of Congress, list of grantees published annually or as required, no charge; Federal Needs Analysis Methodology Booklet, no charge; Verification Handbook, no charge; training materials, no charge.
Information Contacts
Regional or Local Office
Regional Administrator for Student Financial Assistance in the appropriate Regional Office. See Appendix IV of the Catalog.
Headquarters Office
Federal Student Aid Office, Department of Education, 400 Maryland Avenue, S.W., Washington, DC 20202-5347. Telephone: (800) 433-3243.
Web Site Address
http://ifap.ed.gov
Related Programs
64.117, Survivors And Dependents Educational Assistance
84.007, Federal Supplemental Educational Opportunity Grants
84.031, Higher Education-INSTITUTIONAL Aid
84.032, Federal Family Education Loans
84.033, Federal Work-Study Program
84.042, Trio-Student Support Services
84.044, Trio-Talent Search
84.047, Trio-Upward Bound
84.063, Federal Pell Grant Program
84.066, Trio-Educational Opportunity Centers
84.069, Leveraging Educational Assistance Partnership
Examples of Funded Projects
None.
Criteria for Selecting Proposals
None.
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