The wind-down of the Perkins Loan Program does not require schools to assign non-defaulted Perkins Loans to the Department or to liquidate their Perkins Loan Revolving Funds. Under the due diligence general requirements, schools are required to: keep borrowers informed of any and all changes that affect the borrowers rights or responsibilities; respond to any and all inquiries from borrowers; ensure that information available is provided to those school offices (admissions, business, alumni, placement, financial aid, and registrars offices) responsible for billing and collecting loans (including any third-party servicers), as needed to determine the. You must have a coordinating official who is responsible for ensuring that such information is shared among the offices that need it. As part of this process, your Federal Perkins (or NDSL or Defense) loan(s) will be assigned to and transferred to the Department of Education. Perkins Loans were low-interest, long-term loans made through school financial aid offices to help needy under- graduate and graduate students pay for postsecondary education. Once a Perkins Loan has been accepted for assignment by the Department, a school or servicer that has previously reported a borrowers loan to a credit reporting agency MUST report to that agency that the loan has been transferred. Schools can order a reconciliation report from the NSLDS Professional Access website at the link below. If you awarded a Perkins Loan after September 30, 2017, or made a disbursement after June 30, 2018, the award or disbursement was made in error and must be corrected. It is also important that any outstanding loans be recalled from any outside collection or litigation firms. Provide a general description of the types of tax benefits that might be available to borrowers, for example, deducting student loan interest from their taxable income. Common reasons that loans are rejected include the following: Promissory Note (PN) or Master Promissory Note (MPN) missing borrower signature, Loan disbursed prior to PN or MPN being signed, Separate assignment forms on disbursement year (interest rate To receive Perkins Grant funding, Coconino Community College is required to submit an extensive grant application as well as regular fiscal and program reports to ensure compliance with federal and state law. Perkins funds are typically determined in late spring and available to apply for through summer with a Fall deadline. The Perkins Act provides funds under three main programs: Basic State Grants Programs (Title I) through which states distribute money to high schools, colleges and universities that offer programs that integrate academic and career and technical education. Perkins funding at NOVA is distributed to the College through the Virginia Department of Education and the Virginia Community College System. The Federal Perkins Loan Extension Act of 2015 prohibits making new Federal Perkins Loans after September 30, 2017. The vision for CTE in Maryland is for each . As you . Schools that utilize a third-party servicer to complete NSLDS monthly reporting must ensure that the Acceptance reports are provided to those servicers, and that the servicers update the loan status of accepted loans in NSLDS. Federal Perkins V State Plan In Fulfillment of the Requirements of the Strengthening Career and Technical Education for the 21st Century Act Public Law 115-224 California State Board of Education, in collaboration with the Board of Governors of the California Community Colleges Posted by the California Department of Education August 2020 For NSLDS assistance, call 1-800-999-8219 or send an email to NSLDS@ed.gov. Include the reason for the remittance on any accompanying paperwork included with the check. How do I know if my program is a State-approved Occupational Program? Private student loans. NSLDS must reflect that all borrower loan accounts for a liquidating school are retired, accepted for assignment by the Department, or purchased by the school. The government funding will expire in two years, if not renewed by lawmakers. The school will receive an acceptance letter when the loan is accepted for assignment by the Department. In the case of students enrolled in a correspondence program or a study-abroad program that your school approves for credit, you may provide written counseling materials by mail within 30 days after the borrower completes the program. The Strengthening Career and Technical Education for the 21st Century Act (Perkins V), The purpose of this Act is to develop more fully the academic knowledge and technical and employability skills of secondary education students and postsecondary education students who elect to enroll in career and technical education programs and programs of study, by . If your school is closing, please see procedures and guidance provided by the EDs School Participation Team at: https://eligcert.ed.gov. The 2021-2022 Carl D. Perkins Grant Program information have been moved to the Archives. You have the right to cancel all or part of your Federal Perkins Loan. Official Notification of Acceptance Report When manual paper assignments are accepted, the school will receive a document identified as a Perkins Load Database Report (Acceptance Report) via email. If the borrower has made a reasonable effort to resolve the problem through normal processes and has not been successful, he or she should contact the FSA Ombudsman. Each year under the Perkins statute, Congress authorizes roughly $16 million annually under the Native American Career and Technical Education Program (NACTEP) to federally-recognized Indian tribes, tribal organizations, Alaska Native entities, and eligible Bureau of Indian Affairs (BIA)-funded schools to provide career and technical education programs for Native Americans and Alaska Natives. You must ensure that each Perkins Loan is supported by a legally enforceable promissory note. Electronic Announcements: September 16, 2019, August 27, 2021 (GEN-21-53). Comments on the revisions may be e-mailed toCTEPerkinsPlan@nysed.gov with SDPL (sender/organization name) in the subject line. Department of Education.. acceptance of the account, the school must issue a check to the Department. are dissatisfied with the program or other services you purchased from the school. Consolidation Loans. As part of the wind-down of the Federal Perkins Loan Program, the statute requires an annual capital distribution (Distribution of Assets) of the balance of your Perkins Fund. It is important that a school and/or its servicer check the Knowledge Center to ensure it is referencing the latest Guide and materials on the Perkins Liquidation process. There may be loans you have submitted for assignment that the Department is unable to accept. For a more detailed discussion of the coordinating official, see Volume 2. Please continue to make your payments to [school name or servicer name] until you receive the notification from ECSI. Note: New or returning (after an absence) Local Educational Agencies wanting to apply for Perkins funding must submit a completed Intent to Apply (PDF) form prior to January 31st to apply for funds beginning the following July. For further data entry instructions, please refer to Appendix B, Quick Reference Guide to Liquidation Process and Data Entry Details for COD. In this case, the school must: reimburse the Perkins Loan Revolving Fund for the amount of the loan(s); See the Perkins Loans Awarded or Disbursed after the Expiration of the Perkins Loan Program EA of December 20, 2018 for more in- formation on Perkins Loans awarded or disbursed after the expiration of the authority to award new Perkins Loans. The distribution of your schools assets is calculated using the Proportional Share formula and information from your schools most recently submitted FISAP. The latest iteration of Perkins, known as Perkins V, was signed into law in 2018 as the Strengthening Career and . If DLCS makes the consolidation loan, you will receive the amount you indicated on the LVC plus interest. Electronic Announcement January 11, 2019. The government funding will expire in two years, if not . In addition, no further loans could have been made under an MPN after a school received written notice from the borrower requesting that the MPN no longer be used as the basis for additional loans, or after September 30, 2017. No disbursements of Federal Perkins Loans are permitted after June 30, 2018. The New York State Education Department (NYSED) is seeking input from stakeholders about proposed revisions to the State Determined Performance Levels (SDPL) identified in New Yorks Perkins V State Plan. The Perkins V Act requires that all colleges receiving funding must agree to undergo an Office of Civil Rights review. The Campus-Based section of the COD System will post the Federal share amount owed to a schools selfservice page in the eCampus-Based section of the COD System with instructions for remitting payment to the Department. To get started, a school logs in to the eCampus-Based section of COD System and selects Perkins Liquidation from the menu choices on the left. Required Perkins Repayment Information: 34 CFR 674.42(a). For the 2022-2023 school year, over 30 CCTCs will be housed in 10 of Iowa's community colleges and will support students in nearly 60 . Schools and third-party servicers are required to report new loans or update data on existing loans to the NSLDS on a monthly basis. The MPN for the Perkins Loan Program is a promissory note under which the borrower received loans for either a single award year or multiple award years. Institutions must comply with all Federal and State Guidelines and must submit Interim Reports, Final Reports, and data demonstrating their progress with regard to the Core Indicators of Performance, as well as demographic and special populations information. For more on default, see Chapter 5 of this Volume. The Perkins program is the primary federal investment in career and technical education at both the secondary and postsecondary levels. Schools must follow the liquidation and closeout process as detailed in the Guide.). In order to initiate a refund in G5, the Payee user must have already entered refund banking information under Payments, Refund Bank Account Maintenance, even if there is already a bank account connected to the Payments functionality. In order to initiate a refund in G5, the Payee user must have already entered refund banking information under Payments > Refund Bank Account Maintenance, even if there is already a bank account connected to the Payments functionality. Additionally, a defaulter is no longer eligible for any deferment provisions, even if he or she would otherwise qualify. We recommend giving the borrower a sample loan repayment schedule based on his or her total indebtedness. 2324). You have the right to forbearancea temporary cessation of payments, an extension of the time for making payments, or temporarily making smaller payments than were previously scheduledunder certain health-related or financial circumstances. Online Perkins Liquidation Module in the Campus-Based section of COD Systemstreamlines the Perkins Loan liquidation process for schools and provides an accessible tracking system for both schools and the Department of Education (the Department) to view and track the eventual closeout process of a schools Perkins Loan Program. You are responsible for obtaining, completing, and returning to the school for processing any forms required to apply for forbearance, deferment, or cancellation benefits. Federal regulations state that if you spent Campus-Based program funds in 2022-23 or have a Perkins Loan Fund, you must submit a Fiscal Operations Report. The Perkins Loan Assignment System allows authenticated users to: submit multiple loans as a batch file or submit individual loans; securely upload supporting documentation such as promissory notes, payment histories, etc. In addition, for each account about which you are inquiring you must include the students name and Social Security number. A school must continue to file its FISAP annually until it can report all final activity. Remind the borrower that he or she must inform the school of any changes to the aforementioned information in a timely manner. After returning the original note, your school must keep a copy of the note for at least three years after the date the loan was paid in full. In addition, CCC must report if the program meets the annually adjusted Performance Measure Levels in the Consolidated Annual Report (CAR). These Frequently Asked Questions provide further information and operational guidance on the Perkins Loan Program. During exit counseling, a school must also include information on the consequences of consolidating a Perkins Loan, including: the effects of the consolidation on total interest to be paid, fees, and length of repayment; the effect on a borrowers underlying loan benefits, which includes grace periods, loan forgiveness, cancellation, and deferment; and. No new Defense Loans were made after July 1, 1972, but a few have not been fully retired. view reports of Perkins Loans that have been accepted or rejected for assignment. The Campus-Based System in COD guides schools through the liquidation and closeout process. The Federal Perkins Loan Program included Federal Perkins Loans, National Direct Student Loans (NDSLs), and National Defense Student Loans (Defense Loans). The website is linked here. May . Schools must use the Campus-Based Programs System in COD to initiate the process for Perkins liquidation and follow it through to completion. We strongly encourage schools to complete this reconciliation with NSLDS at least quarterly. Your school is responsible for all reporting on the FISAP and in NSLDS regardless of whether your school directly services its Perkins Loan portfolio, or whether it contracts with a third-party servicer for these functions. When using an e-signed MPN, a school must not only meet the Departments Standards for Electronic Signatures in Electronic Stu- dent Loan Transactions as specified in DCL GEN-01-06, but also adhere to the regulatory requirements for retaining information on loans that are e-signed under 34 CFR 674.50. Note: Schools that use the Perkins Loan Assignment System (PLAS) for electronic submission can access information about accepted and rejected assignments through PLAS. The Federal Perkins Loan (Perkins) Program included Federal Perkins Loans, National Direct Student Loans (NDSLs), and National Defense Student Loans (Defense Loans). Objectives CTE Equipment Guidelines Definitions of Object Codes Career and Technical programs and to develop new programs. The $3 million program was funded through the new state budget, and education officials expect it will benefit 1,000 to 1,500 students. In order to properly track borrowers status, your school must have a process for coordinating between the offices which monitor enrollment status, the financial aid office, and the office which manages your Federal Perkins Loan portfolio (and/or any third-party services which man- age the portfolio). Schools are required to assign Perkins loans that have been in default for more than 2 years, unless the school has documentation that shows that the borrower is making payments toward the loan. Funding Funding for 2022-23 Each college eligible for Perkins Leadership funding will receive $17,400 in this block grant. The Carl D. Perkins Basic Grant Program at Hill College is a federally-funded program that provides community colleges with resources to develop and maintain programs that serve faculty, staff and students in technical and vocational education departments. However, schools are permitted to charge allow- able collection costs to the Perkins Revolving Fund as allowed under 34 CFR 674.47. These reports can be viewed online or printed from PLAS. In Field 17A the school or servicer should report the two digit code 05 (Transferred) AND enter the Special Comment Code AL (Student Loan Permanently Assigned to Government). If you graduate or leave school, or if your enrollment drops below half time, you have the right to a nine-month grace period before beginning repayment of you Federal Perkins Loan. The Acceptance Report is sent securely as an attachment from the email address productionprocessing@efpls.com. If the borrower enters the repayment period without the institutions knowledge, your school must provide the following disclosures to the borrower in writing immediately upon discovering that the borrower has entered the repayment period. (See below for mailing information.). It is important that schools ensure their servicers receive copies of all official Acceptance Reports. Schools must use the Miscellaneous Refunds option and select the appropriate Refund Type when returning Perkins Loan funds to the Department. It is important for schools to understand that they will be responsible for any non-compliance by the servicer. If individual interviews are not possible, group interviews are acceptable. You should not reimburse the Perkins Loan fund for loans on which your school obtains a judgment. Each year the institutions must submit applications describing how they will utilize Perkins funding based on the results of their Comprehensive Local Needs Assessments. You should continue to examine your Federal Perkins Loan program and fiscal records, at the start of the year and monthly, until all loans have been retired (or otherwise fully satisfied), or assigned to and accepted by the Department.
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