Last August, we introduced our readers to the ins and outs of the Perkins Loan Assignment process. Since then, multiple changes have come down from the Department of Education, aimed at speeding up the process of schools assigning delinquent Perkins Loans to them.
The Beginning of the Push to Assign
On August 27, 2021, the Department announced that it was mandating all colleges and universities submit their Perkins Loans that are in excess of two years delinquent for assignment by June 30, 2022, or purchase the balances of unassignable loans. The lone exception here is if “the institution has documentation that these borrowers are making payments toward their Perkins loan debt.”
They further stressed this deadline at the beginning of 2022, to the point of notifying schools via email on January 27, 2022, of their need to begin assigning past due Perkins Loans to meet the deadline. Schools were reminded of the content of the August 27 announcement and stated the assessment was conducted by evaluating each school’s most recently submitted FISAP. Assigned loans, the notification also said, would be required to be reported on the 2023-24 FISAP.
A Roadblock Arises: The Department Delays the Assignment Deadline
Due to myriad issues impacting higher education brought about by the COVID-19 pandemic, many schools were struggling to meet the original deadline. On May 4, 2022, the Department offered schools a reprieve - the deadline to assign would be extended by a year, to June 30, 2023. In addition to the pre-established conditions of the August 27, 2021 announcement, the Department added a new request for schools to elaborate on why they were unable to meet the original June 30, 2022 deadline. This is to be provided by schools on their 2023-24 FISAP.
What to Do Now?
If you haven’t begun the assignment process, it’s best to start soon and ensure the new deadline doesn’t catch you by surprise. As we mentioned in our past blog, ECSI offers two tiers of Government Assignment Packet Services, aimed to clean up your portfolio and keep you in compliance with the Department’s most recent guidelines. You can opt for our Standard Service, where we provide you with the needed files to assemble your package for FSA, or the Enhanced Service, where we assemble and mail the package for you! Both services include the required borrower notifications and are the gold standard in the industry for helping schools clean up their portfolios and alleviate these institutional burdens.
For more information about ECSI’s Government Assignment Packet Services, as well as general guidance on what the assignment process looks like, refresh yourself by viewing our August blog on the topic here.