Higher Education Institutions with Perkins Loans Not Required to Return Excess Cash
The U.S. Department of Education (USDE) recently announced that it will not require a distribution of assets from institutions’ Perkins Funds for the 2018-19 award year.
The USDE also noted that it continues to explore options for reimbursing institutions for their Perkins Loan service cancellations.
This means that institutions:
- Do not have to return the federal share of their Perkins Fund to the USDE.
- Should not remove the institutional share from their Perkins Fund and return it to the institution.
- Should not report repayment of federal or institutional shares in the Fiscal Operations Report and Application to Participate (FISAP) due on October 1, 2019. The amounts reported in the following sections should match what was reported on the FISAP that was due on October 1, 2018:
- The “Repayment of Fund capital to federal government” section in Part III, Section A, Line 28.
- The “Distribution of excess/liquid fund capital” section in Part III, Section A, line 30.2.
If your institution has already returned the federal share of your Perkins Fund and removed your institutional share for the 2018-19 award year, you should report the repayments on the FISAP.
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