1. 2015
NYSOBBA Conference
Perkins Update June 16, 2015

2. Agenda Status of the Perkins Loan Program Budget Issues
DCL & Grandfathering Provision
Perkins Q & A Guidance
Grassroots Efforts
Electronic Announcements

3. STATUS OF THE PERKINS LOAN PROGRAM

4. Status of the Perkins Loan Program
The Perkins Loan Program is authorized through September 30, and will expire unless Congress takes action to extend the program.
There is No alternative program or proposal to replace the Perkins Program and the funding it provides.
All Title IV Programs expire on 9/30/15 and the Higher Education Act (HEA) Reauthorization will most likely not be completed by the expiration date.
Department of Ed has stated that they consider any extension of HEA programs after 9/30/15 to include Perkins unless Congress specifically states otherwise.
HEA Extension(s) will be necessary! Last HEA Reauthorization – 13 extensions over 5 years.
Greatest obstacle in getting an extension for Perkins is the cost factor - CBO Score.

5. Perkins Budget Issues
How can a self-sustaining program score as a “Cost”?
The CBO will likely score an extension or continuation of the Perkins Program as a “cost” even without additional $ being appropriated
Scoring a cost for continuing the Perkins program is purely a technicality from baseline budgeting process
The CBO’s budget baseline currently assumes the federal share (FCC) will come back to the Treasury’s general fund
The score would be the federal share of Perkins Loan repayments made by borrowers each year until all funds are repaid
The federal share of the Perkins loan revolving fund is already Federal $ and as such is currently property of the federal government
CBO did NOT score a cost to extend Perkins in 2008, nor was there a score for the many extensions Congress passed between 2004 – 2008.

6. Dear Colleague Letter GEN-15-03 Wind-down of the Federal Perkins Loan Program
Absent Congressional action, schools may not make Perkins Loan to new borrowers after Sept. 30, 2015.
However:
If a school makes a Perkins Loan first disbursement to ANY student for the award year prior to October 1, 2015, it may make any remaining disbursements for the award year after 9/30/15.
A school may also make Perkins Loans to certain students for up to 5 years (through 9/30/20) under a narrow grandfathering provision.
Congressional action includes reauthorization of the Perkins Program or an extension of the current HEA, which does not specifically exclude Perkins.

7. Perkins Grandfathering Provision
A school may make new Perkins Loans to existing Perkins Loan borrowers who qualify under the “grandfathering” provision if all of the following conditions are met:
The school made at least one Perkins Loan disbursement to the student on or before June 30, 2015;
The student is enrolled at the same institution where his/her last Perkins Loan disbursement was received;
The student is enrolled in the same academic program (using first 4 digits of the CIP Code) for which the student received his or her last Perkins Loan disbursement; and
The Perkins Loan is made to an otherwise eligible student to meet all or some of their unmet need to enable them to continue or complete their course of study only after the student has been awarded all Direct Subsidized Loan aid for which the student is eligible.
The grandfathering provision applies only to students who received their first Perkins Loan for the award year or prior. See Recent DCL - GEN-15-03: Wind-down of the Federal Perkins Loan Program:

8. Perkins Grandfathering Provision
Areas for Consideration:
If Perkins is included in an HEA extension – the eligibility period for the grandfathering provision should be extended and therefore include students first awarded Perkins in
The Department has provided a very arbitrary and narrow interpretation of the grandfathering statute, which is being challenged.
Does the Department have the authority to mandate:
how a student is packaged by requiring all unsubsidized funding first be exhausted?
that the student be enrolled at the same school as the previous year in order to receive a Perkins loan?
that the student remain in the same academic program?

9. Perkins Loan Q & A Guidance
Available on IFAP under the Hot Topics Area:
As Perkins ACA is reduced and eventually eliminated, institutions are able to use the ACA earned from FWS and FSEOG to pay for the servicing of Perkins Loans - as is currently the case.
An otherwise eligible Perkins Loan recipient who was enrolled in an undeclared major will remain eligible for the grandfathering provision once they declare a major, but must continue within that academic program to remain eligible under the GF provisions.
For determining grandfathering eligibility, awarded means actually disbursed. However, the student can decline that loan, as long as the amount of the offered Direct Subsidized Loan is included in the calculation of the student’s Perkins Loan eligibility.

10. Perkins Loan Q & A Guidance (cont’d)
Institutions can use their Perkins Loan Revolving Fund to make awards to eligible grandfathered students over the next five years.
Later this year, the Department will begin estimating the amount of each institution’s “excess cash” based on reported expenditures on the school’s FISAP and an estimate of funding needs for the following year(s).
The result, after consultation with the institution, will be to determine the federal share of that excess that will be required to be returned to the Department and the institutional share that the institution can take from the fund. Additional information on this process will be provided at a later date.

11. Perkins Loan Q & A Guidance (cont’d)
The institution can increase the amount of a loan where at least one disbursement was made prior to October 1, 2015 and then disburse the increased amount on or after October 1, 2015.
Institutions may establish in their packaging policies priority groups for the awarding of Perkins Loans. The policy could include placing students who did not receive a Perkins Loan prior to the award year in a low priority group.

12. COHEAO PERKINS GRASSROOTS

13. COHEAO’s Grassroots Efforts
Congressional Visits in D.C. and at Local Offices
Since 2013, COHEAO Members have participated in more than 150 Hill meetings to advocate for Perkins
State Conference Calls to Key Members of Congress with School Participation
Senate HELP Committee (Health, Education, Labor and Pensions)
House Subcommittee on Higher Education and Workforce Training
House Committee on Education and the Workforce
States with high volume of Perkins recipients

14. Reauthorization - Key Players
Senate HELP Committee – Health, Education, Labor & Pensions
Senator Lamar Alexander (R-TN)
Chairman
Senator Patty Murray (D-WA)
Ranking Member
House Education & The Workforce Committee
Congressman John Kline (R-MN)
Chairman
Congressman Bobby Scott (D-VA)
Ranking Member
Subcommittee on Higher Education & Workforce Training
Congresswoman Virginia Foxx (R-NC)
Chair of the Subcommittee
Congressman Rubén Hinojosa, (D-TX)
Ranking Member on Subcommittee

15. Reauthorization – NYS Key Players
Subcommittee on Higher Education & Workforce Training
Congresswoman Elise Stefanik (R-NY)
Majority Member of Subcommittee
21st District – North Country
Congressman Hakeem Jeffries, (D-NY)
Minority Member of Subcommittee
8th District – Brooklyn/Queens
NYS Senators
Chuck Schumer
Kirsten Gillibrand

16. Federal Perkins Loan Program States Ranked by Program Size
Total Recipients
Amount Lent ( )
Average Lent
% of Total Lent
% of Total Recipients
New York (2)
46,704
97,985,353
2,098
10.33%
9.64%
California (2)
42,199
89,960,647
2,132
9.48%
8.71%
Massachusetts
24,291
59,403,640
2,445
6.26%
5.01%
Pennsylvania (2) 
32,545
56,321,678
1,731
5.94%
6.72%
Illinois
29,980
54,473,705
1,817
5.74%
6.19%
Ohio
21,058
37,183,208
1,766
3.92%
4.34%
Michigan (Full Comm -2 Mems)
25,966
34,600,111
1,333
3.65%
5.36%
Texas
10,526
30,072,507
2,857
3.17%
2.17%
Wisconsin
18,514
30,071,677
1,624
3.82%
Indiana
16,546
26,660,042
1,611
2.81%
3.41%
North Carolina (3) 
10,004
25,506,170
2,550
2.69%
2.06%
Missouri
12,048
23,609,054
1,960
2.49%
Minnesota (2) 
11,259
22,961,764
2,039
2.42%
2.32%
Washington
14,842
20,366,273
1,372
2.15%
3.06%
Virginia
7,234
17,441,976
2,411
1.84%
1.49%
Florida
8,100
17,348,680
2,142
1.83%
1.67%
New Jersey
10,090
17,310,913
1,716
2.08%
Tennessee (2) 
6,135
17,083,955
2,785
1.80%
1.27%
Rhode Island
9,231
16,470,197
1,784
1.74%
1.90%
Iowa
11,472
16,402,424
1,430
1.73%
2.37%
Colorado (2) 
5,875
15,151,338
2,579
1.60%
1.21%
Oregon
8,567
13,857,756
1,618
1.46%
1.77%
District of Columbia
4,509
13,403,818
2,973
1.41%
0.93%
Kansas
6,621
12,827,456
1,937
1.35%
1.37%
Maryland
5,746
12,696,432
2,210
1.34%
1.19%
Connecticut (2) 
4,959
12,035,453
2,427
1.02%
Member(s) on Ed & Workforce Subcommittee or Senate HELP Committee
Members on Both

17. Federal Perkins Loan Program States Ranked by Program Size
Total Recipients
Amount Lent ( )
Average Lent
% of Total Lent
% of Total Recipients
Louisiana
4,615
11,721,749
2,540
1.24%
0.95%
Georgia (2) 
3,769
10,512,604
2,789
1.11%
0.78%
Alabama
3,803
9,935,422
2,613
1.05%
Kentucky (2) 
6,000
9,913,315
1,652
New Hampshire
5,211
9,508,373
1,825
1.00%
1.08%
Oklahoma
3,186
8,850,758
2,778
0.93%
0.66%
Nebraska
4,849
8,579,484
1,769
0.90%
South Carolina
3,942
8,555,089
2,170
0.81%
Mississippi
3,266
8,375,909
2,565
0.88%
0.67%
Maine
5,445
8,231,748
1,512
0.87%
1.12%
Utah
3,529
7,955,098
2,254
0.84%
0.73%
Vermont
4,086
6,507,579
1,593
0.69%
Arizona (2)
1,981
5,766,636
2,911
0.61%
0.41%
Arkansas
2,220
5,499,417
2,477
0.58%
0.46%
South Dakota
3,670
5,358,224
1,460
0.56%
0.76%
Montana
3,434
5,196,857
1,513
0.55%
0.71%
West Virginia
2,598
4,369,684
1,682
0.54%
New Mexico
2,194
4,059,318
1,850
0.43%
0.45%
North Dakota
2,482
4,039,230
1,627
0.51%
Idaho
2,905
3,899,114
1,342
0.60%
Hawaii
1,075
2,702,787
2,514
0.28%
0.22%
Wyoming
827
2,458,883
2,973
0.26%
0.17%
Puerto Rico
1,929
2,330,223
1,208
0.25%
0.40%
Delaware
2,021
1,663,338
823
0.18%
0.42%
Nevada
595
1,308,875
2,200
0.14%
0.12%
Virgin Islands 3
7,000
2,333
0.00%
Member(s) on Ed & Workforce Subcommittee or Senate HELP Committee
Members on Both

18. Bipartisan Resolution Supporting Perkins
Introduced 6/3/15 by Representatives Luke Messer (R-IN) and Mark Pocan (D-WI)
Highlights many of the benefits of the Perkins Loan Program
Efficient, need-based, low-interest loans
Serving 500,000 low-income students with high need each year
Favorable terms for students
Shared risk by participating schools
Loans made using funds repaid by previous borrowers
Targeted cancellations for public service
Human touch of campus-based servicing

19. Bipartisan Resolution Supporting Perkins
“Whereas without Perkins Loans, thousands of Americans will lose the chance at higher education and a better life: Now, therefore, be it
Resolved, That the House of Representatives strongly supports the continuation of the Perkins Loan Program in order to provide educational opportunities to future generations of students who need low-cost financing to make their dreams of higher education possible.”
The introduction of this bipartisan resolution by members of the Education and the Workforce Committee, is a strong sign of support for the Perkins Loan Program.
It will be a much stronger statement if the resolution has numerous cosponsors.
Please reach out to your House Representative and urge
them to support H. Res 294.

20. HELP Committee Hearing: Exploring Institutional Risk-Sharing
HELP Comm. considering changes within HEA reauthorization that would require institutions to accept some of the risk of student loan borrowing.
Sen. Tammy Baldwin (D-WI) highlighted the Perkins Program by stating that the concept of schools having “skin in the game” has been around since 1958 in the Perkins Loan Program.
Baldwin referred to Perkins as “a successful campus-based risk sharing program”
The testifying witnesses shared Baldwin’s Concerns about the Perkins Program expiring stating that it is an important tool for college access and agreed that it is a viable method for implementing risk-sharing.

21. HELP Committee Hearing: Ensuring College Affordability
Large focus on the continuing pattern of state disinvestment in higher education and the direct impact it has on college costs, student debt loads and access to higher education. Chairman Alexander described declining state funding as “the greatest challenge facing higher education today.”
Alexander outlined 5 steps Congress might consider to help reduce student over-borrowing:
make it simpler to repay loans;
stop discouraging colleges from counseling students about how much they should borrow;
help students complete their degree more quickly;
require colleges to share in the risk of lending to students; and
have Congress evaluate its role in increasing college costs.

22. HELP Committee Hearing: Ensuring College Affordability
Second consecutive Senate HELP Committee hearing where a Senator used all of their question time to highlight the virtues of Perkins Loans and bemoan the program’s potential expiration.
Sen. Bob Casey (D-PA) mentioned how important the Perkins Loan Program is for Pennsylvania students and colleges, and asked the witnesses what they thought of the program:
James Kennedy of Indiana University said it was incredibly important on his campus, noting that Perkins is often used for those last few thousand dollars of student need.
F. Scott Alexander, who ironically had been highly critical of the formulas in the Campus-Based Aid Programs, also indicated that the program was very important to students at Louisiana State University.
Judith Scott-Clayton, Teachers College, Columbia University, an “expert” in financial aid, acknowledged the program is very beneficial to students, but argued it does add additional complexity to the Title IV system.

23. COHEAO’s Reauthorization Proposal
Campus Flex
Creates one appropriation for the 3 campus-based programs (Federal Work Study, FSEOG and Perkins)
Allows schools to decide which programs to invest funds based on students’ needs
Achieves the goal of simplification but maintains all three campus-based programs
Unites proponents of the campus-based programs to work together for annual appropriations
Receiving interest and support on the Hill

24. Your Voice Matters!
Most Importantly - Ask your Congressional Representative to Support H.R. 294!
Make sure your President is aware of the impact to your institution if Perkins is eliminated – share the impact on both enrollment and retention.
Inform your government relations office of the impact to your students and campus. Provide them with key information that they can share with Congressional Members and staff.
Discuss with other offices affected on campus – financial aid, business office and admissions.
Get your student government association involved!
Bring the issue to students and parents and ask for their help in supporting the program.

25. School Action Checklist
Put together statistics and an impact statement for your campus
Share information with your president and federal affairs/government relations office
Educate your colleagues and ask for their support
Ask your University President and key campus colleagues to write or sign a letter of support
Engage - students, borrowers and parents – gather testimonials
Current and former students who were able attend your school because of Perkins
Parents who depend on Perkins to fund the cost of attendance
Borrowers who have benefitted from a Perkins loan cancellation
Visit your Congressional Representatives in their local offices
Write, and call your Congressional Representatives (share communications with COHEAO)
Network with local colleges and higher education groups
Sign the Save Perkins Now Petition at Change.Org
Get co-sponsors for the Perkins Resolution – H.R. 294
Continue to award Perkins Loans
Contact COHEAO with questions, for direction or advice
Here is a handy checklist for you to use or share with members of your campus who want to do more at this critical time to save Perkins!

26. Spread the Word! View the Perkins Video:

27. Sign the Petition Today
Save Perkins Now!
We have more than 13,000 signatures
Lets get it to 20,000
Support the Perkins Loan Program!
Sign the Petition Today
Share with Colleagues & Students

28. Save Perkins Now!
Who can say No to the Perkins Puppy?

29. You definitely can’t say No to
Save Perkins Now!
You definitely can’t say No to
Grumpy Cat!

30. ELECTRONIC ANNOUNCEMENTS

31. Electronic Perkins Assignments Planned
Electronic Announcement 4/22/15
Electronic Assignments using Perkins Loan Assignment System
The Perkins Loan Assignment System will allow authenticated users to:
Submit multiple loans as a “batch file” or submit individual loans
Securely upload supporting documentation (promissory notes, payment histories, etc.)
Search, view, and edit submitted loan assignment information
View reports of Perkins Loans that have been accepted or rejected for assignment

32. Perkins Loan Service Cancellation Reimbursement
Electronic Announcement 5/5/15
No reimbursement for Perkins Service Cancellations (no money was appropriated by Congress)
The Department did calculate the reimbursement payment for which an institution would have been eligible to receive and will maintain a record of that.
Keep that info for your records – institutional share of cancellation reimbursements should be returned to schools if Perkins expires.

33. Perkins E-Signature - Authentication after STAN
Electronic Announcements (5/22/15; 5/11/15; 5/7/15; 5/4/15; 4/13/15; 1/12/15; 10/1/14)
Federal ID Replaces the FAFSA PIN
System went live on May 10, 2015
Eliminated the STAN (Student Authentication Network)
FSA failed to establish an alternative system for Perkins Authentication
More than 325,000 Perkins borrowers were authenticated through STAN last year
Alternative methods provide only 75%-80% success at best
Students unable to be authenticated will require paper MPN
FSA has promised to look into alternatives for Schools and Servicers – earliest possible is end of this year.

34. Questions…

35. CONTACT INFORMATION
Maria Livolsi
Director, State University of New York
Student Loan Service Center
President of COHEAO