Institutions that participate in the Federal Perkins Loan must return to the Department of Education the Federal portion of any Excess Liquid Capital (ELC) in their Perkins Loan Revolving Fund.

ELC is the amount of the Fund’s “Cash On Hand” that is in excess of the institution’s estimated immediate needs.  This statutory requirement for institutions to return ELC is not directly related to the wind-down of the Perkins Loan program.  Each institution that participates in the Federal Perkins Loan Program must, using the ELC Worksheet attached to this letter, determine if its Fund includes ELC.  If there is ELC in the institution’s Fund, the attached Proportional Share Worksheet will allow the institution to calculate the Federal share of the ELC that must be returned to the Department and the institutional share of the ELC that must be removed from the Fund and returned to the institution.

IMPORTANT: The Federal share of the institution’s ELC must be returned to the Department no later than December 31, 2015.

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