This assessment provides you with an opportunity to review procedures regarding the Federal Perkins Loan awarding & disbursement requirements. Additional links are provided to assist you in the evaluation of your awarding and disbursing of Federal Perkins Loans.

Additional Federal Perkins Loan awarding & disbursement activities are provided in the chart below.

Policies and Procedures Chart

Why start with policies and procedures?

Reviewing and developing policies and procedures is a good place to begin when evaluating your financial aid operations. It is difficult to assess your compliance on an individual student level if your policies and procedures aren't fully developed, are inaccurate or are not being consistently followed. Completing the policies and procedures prior to any other activities will help you identify additional areas to evaluate and will assist you in making the most of your compliance efforts.

For Perkins awarding & disbursement we recommend that you start with the following activities from the policies and procedures Design Process Chart: Activity 4 (Selection of Students For Loans section, Loan Disclosure section, and Fiscal Procedures and Records section). In addition, you may find it helpful to select a topic related to Federal Perkins Loan Processes to provide you with a policy and procedure template. Use this template to either assist you in creating a new policy and procedure or to test your current policies and procedures.

If you identify areas requiring a corrective action, we recommend that you complete the Management Enhancement Worksheet.

Activity Bar:
Federal Perkins Awarding & Disbursement Activity 1: Federal & Non-Federal Share
Federal Perkins Awarding & Disbursement Activity 2: Account Requirements
Federal Perkins Awarding & Disbursement Activity 3: Disbursement File Review

Additional Links: 2008-09 FSA Handbook, Campus-Based Programs, Chapter 1; 2008-09 FSA Handbook, Processing Aid & Managing FSA Funds, Chapter 3; 2008-09 FSA Handbook, Student Eligibility, Chapter 3

Federal Perkins Loan Awarding and Disbursing	Activity
Administrative Cost Allowance (ACA) 673.7
Purpose and identification of common provisions 674.1
Definitions 674.2
Federal Perkins Loan Program cohort default rate and penalties 674.5: A borrower who is in default on an FSA loan is not eligible for a Perkins Loan unless he or she has regained eligibility (Please see 674.5(f) and 2008-09 FSA Handbook, Student Eligibility, Chapter 3). However, a borrower who satisfies any of the conditions that remove his loan from the school’s cohort default rate becomes eligible for additional Perkins Loans (See 674.5(c)(3) for a description of loans not included in the school’s cohort default rate).
Program Participation Agreement 674.8, Allocation of Funds 673.4(a), 674.8(a)(2)
Student Eligibility Criteria: 674.9 for specific Student Eligibility requirements related to Federal Perkins Loans. Pell Eligibility 674.9(d), requirements (668.32 through 668.39) and (668.130 through 668.139). Willingness to Repay 674.9(e). Previous Disability Cancellation 674.9(g) and (h) Medical Internship or Residency HEA 464(c)(2)(A)(i), Incarcerated Students 668.32(c)(2)(ii), Teacher Certification Programs 668.32(a)(1)(iii) Borrowers in Default HEA 464(b)(1)	Federal Perkins Awarding & Disbursement Activity 3: Disbursement File Review
Selection of Students for Loans 674.10, Exceptional Need 674.10(a)(1) Independent and Less-Than-Full-Time Students 674.10(b)
Loan Maximums 674.12
Reimbursement to the Fund 674.13
Making and disbursing loans 674.16, General Disbursement Requirements, See 668.161 through 668.167. Counseling Students 674.16(a), 2008-09 FSA Handbook, Campus-Based Programs, Chapter 3, pages 6-62 through 6-63, Power of Attorney 674.16(h), Frequency of Disbursements 674.16(b), Uneven Costs 674.16(c), Paying Students before the Student begins attendance 674.16(f), Credit Bureau Reporting 674.16(i), The Department of Education considers the Federal Perkins Loan Program to be a credit assistance program authorized by federal law for the benefit of an economically disadvantaged class of persons within the meaning of 12 CFR 202.8(a)(1). Therefore, a school may request that a loan applicant disclose marital status, income from alimony, child support, and spouse’s income and signature.
Use of Funds 674.18, Transfer of Funds 674.18(b)
Fiscal procedures and records 674.19, Recordkeeping Requirements 668.24; 674.10(c), See 668.24 and 674.10(c) for specific requirements. (668.24(d)). Account Requirements: Please refer to the Cash Management Regulations by accessing the following link: 668.161 through 668.166, Promissory Note 674.19, 674.31, 674.19, 674.19(e), Perkins MPN DCL-CB-03-11; DCL CB-03-13; DCL CB-03-14; DCL GEN-01-06	Federal Perkins Awarding & Disbursement Activity 1: Federal & Non-Federal Share Federal Perkins Awarding & Disbursement Activity 2: Account Requirements
Compliance with equal credit opportunity requirements 674.20, a school must comply with the equal credit opportunity requirements of Regulation B (12 CFR Part 202).
Policies and Procedures Chart