Revised Instructions for Returning Federal Perkins Loan Funds to the Department

The Department of Education just released revised instructions for returning Perkins Loan funds which replace all previous instructions. Schools must be sure to use the new guidance. Changes have been made to G5 that will now allow schools to properly identify the Perkins Loans Funds being returned under the Federal Perkins Loan Program. Specifically, schools can indicate the funds are being returned for the following reasons:

  • Perkins Excess Cash – when returning the Federal Share of the Excess Liquid Capital
  • Perkins Liquidation – when closing out your Perkins Loan Fund and returning the Federal Share at the end of the school’s liquidation process

The revised instructions also include guidance for schools to refund Perkins Loan funds by check when schools cannot utilize G5 to return funds electronically. The updated instructions can be found here: http://1.usa.gov/1NZjDVp

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