The Federal Perkins Loan
The Federal Perkins Loan Program Extension Act of 2015 (The Extension Act), enacted on December 18, 2015, extends the Perkins Loan Program through September 30, 2017.
The Extension Act also amended HEA section 461 to end an institution's authority to make new Perkins Loans to undergraduate students on September 30, 2017. However, if an eligible undergraduate student receives a disbursement of a Perkins Loan before October 1, 2107, for the 2017-2018 award year, the student may receive any subsequent disbursements of that Perkins Loan through June 30, 2018.
No Perkins Loan disbursements are permitted after June 30, 2018, under any circumstances.
Per the changes in the Extension Act, effective December 18, 2015, schools participating in the Perkins Loan Program may make Perkins Loans as specified below:
|A school may make Perkins Loans through—||To an—||Who, on the date of disbursement—||If the school has awarded the student—|
|September 30, 2017||Eligible current undergraduate student||Has an outstanding balance on a Perkins Loan made by the school.||All Direct Subsidized Stafford Loan aid for which the student is eligible.|
|September 30, 2017||Eligible new undergraduate student||Does not have an outstanding balance on a Perkins Loan made by the school.||All Direct Subsidized and Unsubsidized Stafford Loan aid for which the student is eligible.|
Awarding Direct Subsidized and Unsubsidized Stafford Loans - An undergraduate student who was awarded a Direct Subsidized Loan and/or a Direct Unsubsidized Loan can decline one or both of the loans (or request a lesser amount). However, the student’s Direct Loan eligibility amounts must be included in the calculation of the undergraduate student’s Perkins Loan amount, regardless of whether they actually borrow that full amount.