The Federal Perkins Loan Frequently Asked Questions website has been updated offering a follow up to earlier guidance asking when an institution may make a disbursement after June 30, 2018 for a prior year’s crossover summer term.
Q – If a school awarded a Perkins Loan to an undergraduate borrower for the 2017-2018 academic year and made at least one disbursement of that loan prior to October 1, 2017, and the borrower then enrolls in a summer 2018 session, may the borrower receive a Perkins Loan for the summer session?
A – Yes, only if the institution includes the portion of the loan that will be disbursed for the summer, 2018 session as part of the 2017-2018 award year loan for which the borrower received at least one disbursement before October 1, 2017. The institution does this by increasing the loan amount and extending the loan’s loan period.
Q – The prior answer states that an undergraduate borrower may receive a Perkins Loan for summer 2018 session if the borrower was awarded a Perkins Loan for the 2017-2018 academic year and if at least one disbursement of that loan was made prior to October 1, 2017. Is an institution permitted to make a disbursement after June 30, 2018 for a cross-over summer period?
A – No. An institution is not permitted to make a Perkins Loan disbursement after June 30, 2018 for a prior year’s crossover summer term.