To provide low interest loans to eligible postsecondary
students with demonstrated financial need to help meet educational expenses.
TYPES OF ASSISTANCE:
Direct Payments for Specified Use. Place Cursor Here for Definition
USES AND USE RESTRICTIONS:
Institutions use funds to make loans to needy, eligible students for meeting
educational expenses. The maximum annual loan amount limit for an eligible
student attending an institution for the 1999-2000 award year is $6,000 for a
graduate or professional student or $4,000 for a student who has not
successfully completed a program of undergraduate education. The maximum
aggregate loan amount for an eligible student attending an institution is
$40,000 for a graduate or professional student, including loans borrowed as an
undergraduate student, or $20,000 for a student who has successfully completed
2 years of a program of undergraduate study and $8,000 for any other student.
For a program of study abroad that has reasonable costs in excess of the home
costs, the annual and aggregate limits may be exceeded by 20 percent. An
institution is entitled to an administrative cost allowance for an award year
if it advances funds to students in that year under the Federal Perkins Loans
Program, in an amount equal to five percent of the first $2,750,000 in
expenditures, plus 4 percent for expenditures greater than $2,750,000 but less
than $5,500,000, plus 3 percent for expenditures in excess of $5,500,000.
Beneficiary Eligibility: Undergraduate, graduate,
or professional students enrolled or accepted for enrollment as regular
students in an eligible program, are maintaining satisfactory academic
progress in accordance with the standards and practices of the institution,
have financial need, do not owe a refund on a Title IV grant, are not in
default on a Title IV loan, file a statement of educational purpose, file a
statement of registration compliance (Selective Service) and meet
citizen/resident requirements.
Credentials/Documentation: Institutions must
document their eligibility and students must demonstrate financial need. This
program is excluded from coverage under OMB Circular No. A-87.
Pre-application Coordination: Representatives of the
appropriate ED Regional Office are available for consultation. See listing of
ED Regional Offices in Appendix IV. Students should contact the institution(s)
they attend or plan to attend. This program is excluded from coverage under
E.O. 12372. This program is excluded from coverage under OMB Circular No.
A-102.
Application Procedure: Participating institutions
submit a Fiscal Operations Report/Application to Participate in Federal
Student Financial Aid Programs (ED Form 646-1) which is mailed to institutions
of postsecondary education each summer by the Office of Student Financial
Assistance. New institutions submit only the application form. This program is
subject to the provisions of OMB Circular No. A- 110.
Award Procedure: The Office of Student Financial
Assistance determines final awards and notifies participating institutions.
Deadlines: Specified on the application (usually
around October 1).
Range of Approval/Disapproval Time: Notices of
tentative awards sent by February 1 and final award notification sent by April
1.
Appeals: None.
Renewals: Annual.
ASSISTANCE CONSIDERATIONS:
Formula and Matching Requirements: Funds for the
1999-2000 award year are allocated to institutions on the basis of award year
1985-86 allocations and demonstrated need for funding. Institutions award
funds to students on the basis of financial need as determined by the Federal
Needs Analysis Methodology specified in statute. The institutional capital
contribution (ICC) for institutions is one-third of the FCC (or 25 percent of
the combined FCC and ICC) for the 1994-95 and subsequent award years.
Length and Time Phasing of Assistance: Funds are
awarded for use by participating institutions for one award year at a time
following the year of application.
POST ASSISTANCE REQUIREMENTS:
Reports: A single combined Fiscal Operations
Report/Application form for Federal Perkins Loans, FSEOG, and FWS (ED Form
646-1) is submitted by each institution at the close of each award year of
operation (June 30).
Audits: Institutions must have a nonfederal audit
done on at least an annual basis at its own expense. Audits may also be
performed at Government expense by the Department of Education's Office of the
Inspector General as often as its time schedule will allow or when deemed
necessary by the Secretary.
Records: Except for loan records and records of
expenditures questioned in audits or Departmental program reviews, an
institution must keep records for an award year for three years after
submitting its Fiscal Operations Report for an award year, or until final
resolution of an applicable audit or program review, whichever is later. An
institution must keep loan repayment records for at least 3 years from the
date of satisfaction of the loan or assignment of the loan to the United
States, or it is canceled.
FINANCIAL INFORMATION:
Account Identification: 91-0200-0-1-502.
Obligations: (Federal capital contribution) FY 01
$100,000,000; FY 02 est $100,000,000; and FY 03 est $100,000,000.
Range and Average of Financial Assistance: The
average award for a fiscal year 2001 loan was $1,681.
In award year 2001, 711,000 Perkins loans were awarded.
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: Students should contact
the educational institution(s) they attend or plan to attend. Educational
institutions should contact the Regional Administrator for Student Financial
Assistance in appropriate ED Regional Office. See Appendix IV of the Catalog.
Headquarters Office: Policy Development Division,
Office of Student Financial Assistance, Department of Education, 400 Maryland
Avenue, SW., Washington, DC 20202-5446. Telephone: (800) 443-3243.
