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Now Available: Updated Federal Perkins Loans Assignment and Liquidation Guide
- April 25, 2024
The Department of Education has published its latest version of the Federal Perkins Loan Program Assignment and Liquidation Guide that contains important updates to reconciliation reports in NSLDS as well as procedures for submitting spreadsheets. Other changes include detailed guidelines for the new Perkins Portfolio Report (PRKPF1) and the Perkins Extract by Parameters Report (formerly called ReC005), which will help institutions process defaulted loans or during liquidation.
Read the full announcement for more details.
POSTED DATE: April 23, 2024 AUTHOR: Federal Student Aid ELECTRONIC ANNOUNCEMENT ID: CB-24-09 SUBJECT: Updated Federal Perkins Loan Assignment and Liquidation Guide Now Available
We have updated the Federal Perkins Loan Program Assignment and Liquidation Guide .
The updated Assignment and Liquidation Guide (Guide) is now available on the Campus-Based Processing Information page on the Knowledge Center . Information related to Perkins Liquidation and Assignment is prominently displayed in a designated section on the right-hand side of the page. Note: We recommend that schools bookmark the Campus-Based Processing Information Page for convenient future access.
This Guide has been enhanced to incorporate recent additions and modifications to reconciliation reports available on the National Student Loan Database System (NSLDS®) website. It furnishes detailed instructions regarding the utilization of the new Perkins Portfolio Report (PRKPF1), alongside the Perkins Extract by Parameters Report (formerly called REC005), and the procedure for the spreadsheet submittal process. This resource aids schools in leveraging NSLDS reports for reconciliation purposes during the mandatory assignment of older, defaulted loans or during the liquidation process.
In addition to the changes noted above, the Guide includes essential modifications to guidance concerning the return of funds to the U.S. Department of Education (the Department) via G5/G6. 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.
Contact Information
If you have questions about the information provided in this announcement, contact the FSA Partner and School Relations Center at 1-800-848-0978. You may also email [email protected] .
If you have questions specific to NSLDS data entry, access, use, or reports, contact NSLDS Customer Support Center at 1-800-999-8219 or email [email protected] .
SOURCE: (CB-24-09) Updated Federal Perkins Loan Assignment and Liquidation Guide Now Available
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Privacy Overview
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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Tips on Closing Out the Perkins Loan Program
- Regulations
Key insights
- To close out of the Perkins Loan program, every loan with an outstanding balance must be accounted for either by being assigned to the Department of Education or purchased by the institution.
- Higher ed institutions need to analyze their portfolio and consider their most advantageous time to close out.
- The Department of Education’s Assignment and Liquidation Guide can help you understand options for assigning loans with missing information.
Develop an exit strategy that works to your institution’s advantage.
It’s been almost eight years since Congress allowed the Perkins Loan program to expire. There are plenty of higher ed institutions that have closed out of the program — and many more that are still working toward this goal. To close out, every loan with an outstanding balance in the program must be accounted for either by being assigned to the Department of Education (ED) or purchased by the institution.
When is a good time to exit the program?
While the general industry consensus is that higher ed institutions want to just close out the program and be done, it can come at a cost. Institutions need to analyze their portfolio and consider their most advantageous time to close out.
If your portfolio is made up of students in repayment who are consistently making payments, it might make sense to stay in the program for a while. However, if you have many defaults and inconsistent repayment, it might be a good time to exit the program.
Remember — when you assign a loan to ED, you forego your interest in that loan. Work with a professional advisor who can help assess your institution’s situation and build a beneficial exit plan.
What if a loan is missing documentation?
When assigning loans to ED, the original promissory note — along with repayment history, judgement, and bankruptcy information — needs to be submitted. But what happens if you can’t find that promissory note signed 30 years ago, or if the institution switched third-party servicers and some of the repayment history disappeared? Is it certain that your institution will have to purchase this loan?
Not necessarily. ED has some alternatives. In its Assignment and Liquidation Guide , the section titled “What to do if you have missing or defective documentation or other extenuating circumstances” can help you understand options for assigning loans with missing information.
Join us on March 30 for a complimentary webinar as we review what an institution should expect when exiting the Perkins Loan program. Register today.
How we can help
Closing out of the Perkins Loan Program isn’t an overnight process — it will take significant resources and time. CLA’s higher education professionals can help you streamline the process and lay out a plan that works to your institution’s advantage.
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1-11: revised perkins assignment form and instructions now available.
Posted Date: January 11, 2019
| Author: | Federal Student Aid |
Subject: Revised Perkins Assignment Form and Instructions Now Available
We are pleased to announce the availability of the revised Federal Perkins Loan (Perkins Loan) Assignment Form. We have also updated the instructions for the form.
Perkins Loan Assignment Form
The Office of Management and Budget (OMB) has approved a revised version of the Perkins Loan Assignment Form under OMB Control No. 1845-0048. The new expiration date is 12/31/2021. The new version replaces the previous version with an expiration date of 12/31/2018.
Changes to the Form
The two-part Perkins Loan Assignment Form has changed. The Date of First Disbursement was moved from the required manifest portion (Section C) of the Institutional Certification page to the historical loan information portion (Section C) of the Borrower and Loan Information page. As a result, some of the data fields on the Borrower and Loan Information page have been shifted and renumbered. The Date of First Disbursement is the new field 20, followed by the Date of Last Disbursement as new field 21, and so on.
This change places the historical loan information together, and should help ensure schools and third-party servicers provide all required data on the form.
With the change in field numbers, we also made corresponding updates to the Perkins Loan Assignment Form Instructions.
Implementation of the Form
Schools and third-party servicers should begin utilizing the OMB-approved form immediately; however, the Department of Education will continue to accept assignment forms with the previous expiration date of 12/31/2018 through 06/30/2019.
The revised form and the instructions have been posted to the Campus-Based Processing Information Page. To navigate to the Campus-Based Processing Information page from the Information for Financial Aid Professionals (IFAP) Web site’s home page, click on the Processing Resources box then click on the Campus-Based Processing Information link. Perkins Liquidation and Assignment information is highlighted in an orange box on the right side of the page.
Schools may also complete assignments electronically using the Perkins Loan Assignment System .
Contact Information
If you have questions about the Perkins Loan Assignment Form, contact the Federal Perkins Loan Servicer – School Customer Service by phone at 1-844-301-2620 or by email at [email protected] .
Publication Date: 1/14/2019
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perkins loan assignment guide
IMAGES
VIDEO
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 Department). It also provides schools information and ...
The updated Assignment and Liquidation Guide (Guide) is now available on the Campus-Based Processing Information page on the Knowledge Center. Information related to Perkins Liquidation and Assignment is prominently displayed in a designated section on the right-hand side of the page.
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. The Guide was also updated to reflect a change in the assignment and operational procedures for loans that have ...
The Assignment and Liquidation Guide (Guide) has been updated and restructured. It has been updated to reflect necessary changes due to the transition of the business processes for the Campus-Based programs to the Common Origination and Disbursement (COD) System. In addition to making changes relating to the system transition, the Guide was ...
Active links to the Intent and Closeout Form, Perkins Liquidation Procedures, Perkins Assignment Procedures, and instructions for Returning Federal Perkins Loan Program Funds to the Department are included where referenced on the home page.
This user guide provides technical instructions for this automated assignment process. For additional assistance with PLAS, contact ECSI Federal Perkins Loan Assignments Support at 844-301-2620 during the business hours of 8:00 a.m. through 5:00 p.m. (EST), Monday through Friday.
April 25, 2024. The Department of Education has published its latest version of the Federal Perkins Loan Program Assignment and Liquidation Guide that contains important updates to reconciliation reports in NSLDS as well as procedures for submitting spreadsheets. Other changes include detailed guidelines for the new Perkins Portfolio Report ...
The Perkins Assignment and Liquidation Guide states that when a campus assigns a loan and the Department accepts the loan, all rights and responsibility for servicing and collection on the loan becomes the responsibility of the Department. All rights, authorities and privileges associated with the loan are transferred to the Department. All future payments will be made to the Department and ...
If a loan is rejected for assignment, ED must provide the reason for the rejection and the institution will be required to resolve the issue and resubmit the loan for assignment. If this is not possible, the institution must purchase the loan. See the Federal Perkins Loan Program Assessment and Liquidation Guide for details.
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.
Closing out the Perkins Loan Program Notify ED of intent to liquidate (via eCB system) Assign all loans to ED (via PLAS system) or purchase loans Update NSLDS and notify students of assignment Close out audit report Return federal share of funds Submit final FISAP
The Perkins Loan Program was a federal student loan program that provided low-interest loans to students with exceptional financial need. No new loans have been issued since the Program's expiration in 2017. ... This guide explores the assignment and liquidation processes. What is an assignment? Loan assignment is the process an institution ...
Key insights To close out of the Perkins Loan program, every loan with an outstanding balance must be accounted for either by being assigned to the Department of Education or purchased by the institution. Higher ed institutions need to analyze their portfolio and consider their most advantageous time to close out. The Department of Education's Assignment and Liquidation Guide can help you ...
The Office of Management and Budget (OMB) has approved a revised version of the Perkins Loan Assignment Form under OMB Control No. 1845-0048. The new expiration date is 12/31/2021. The new version replaces the previous version with an expiration date of 12/31/2018. Changes to the Form. The two-part Perkins Loan Assignment Form has changed.
Review the Perkins Assignment and Liquidation Guide (available on IFAP) Schools can assign defaulted or non-defaulted Perkins loans at any time - rather than liquidating Schools can elect to complete and submit assignments either manually by paper or electronically by using the Department's Perkins Loan Assignment System (PLAS) Schools who ...
The updated Assignment and Liquidation Guide is now available on the Campus-Based Processing Information page on the Knowledge Center. Perkins Liquidation and Assignment is highlighted in its own box on the right side of the page. Note: We encourage schools to bookmark the Campus-Based Processing Information Page for easy reference.
For guidance on the Perkins loan assignment process, please refer to the Perkins Assignment and Liquidation Guide. For Perkins Loans rejected for assignment, the Department will provide the institution with the reason (s) for rejection; if the institution can resolve the issue (s) it may resubmit the loan for assignment.
As a result, students can no longer receive Perkins Loans. A borrower who received a Perkins Loan can learn more about managing the repayment of the loan by contacting either the school that made the loan or the school's loan servicer ... Link to assignment and liquidation guide in the references section. Why would a school liquidate ...
This new Perkins Loan Assignment System (PLAS) allows users to: −Electronically submit loan assignment requests, either for individual loans or for multiple loans as a batch file −Securely upload supporting documentation −Search, view, and edit submitted loan assignment information −View reports of accepted/rejected loans for assignment
Perkins Liquidation and Assignment information is highlighted in an orange box on the right side of the page. Note: We encourage schools to bookmark the Campus-Based Processing Information Page for easy reference. The Assignment and Liquidation Guide (Guide) has been updated and restructured.
The Federal Perkins Loan Program Assignment and Liquidation Guide (Guide) is a comprehensivepublication that provides information and procedures on the assignment process of Federal Perkins,
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 Depar