Perkins Loan Cancellations

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.

Agency - Department of Education

The Department of Education ensures equal access to education and promotes educational excellence through coordination, management and accountability in Federal education programs. The Department works to supplement and complement educational efforts on all levels, encouraging increased involvement by the public, parents and students.

Office - Regional Administrator for Student Financial Assistance in the appropriate Regional Office.

See Appendix IV of the Catalog.


Program Accomplishments

Not currently available.

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.

Aplication 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 Procedures

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 Procedures

Reimbursements are made annually upon acceptance of the institution's Fiscal Operations Report.

Deadlines

None.

Authorization

Higher Education Act of 1965, Title IV, Part E, as amended, Public Law 103-208, 20 U.S.C. 421-429.

Range of Approval/Disapproval Time

Reimbursements are made upon acceptance of the Fiscal Operations Reports.

Appeals

None.

Renewals

Not applicable. Payments are based on entitlement.

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.

Obigations

(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.

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.

Criteria for Selecting Proposals

None.



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