The Federal Perkins Loan Program Extension Act of 2015: In Brief

Summary

Prior to December 18, 2015, the Federal Perkins Loan program authorized the allocation of federal funds to institutions of higher education to assist them in capitalizing revolving loan funds for the purpose of making low-interest loans to students with exceptional financial need.

The authorization of appropriations for federal capital contributions to institutions’ revolving loan funds and the authority to make Perkins Loans to new students expired on September 30, 2015. For approximately two and one-half months thereafter, the operation of the Perkins Loan program was curtailed and loans could only be made to continuing students. Then, on December 18, 2015, Congress enacted the Federal Perkins Loan Program Extension Act of 2015 (the Extension Act; P.L. 114-105), which extended the authorization to make new Perkins Loans to eligible students through September 30, 2017. In addition to extending the authorization to award new Perkins Loans, the Extension Act also amended several key Perkins Loan program provisions relating to student eligibility to receive new Perkins Loans, institutional disclosures required to be made to students borrowing new Perkins Loans, and the distribution of Perkins Loan funds assets upon the program’s end. Additionally, the Extension Act prohibits future appropriations for the program and prohibits an automatic extension of the program under the General Education Provisions Act.

This report describes the changes made to the Perkins Loan program by the Federal Perkins Loan Program Extension Act of 2015.