Thanks to the University of California for sharing their thoughts on the new Perkins Loan program as proposed in H.R. 3221, the Student Aid and Fiscal Responsibility Act (SAFRA).
I am providing their comments in response to an aide to the House Committee on Education and Labor who had earlier indicated that legislators were interested in working with the financial aid community on finding a compromise solution to this interest rate subsidy issue. I also am hoping that other financial aid administrators will use this as a forum to discuss any issues they might have with the proposed Perkins Loan reform, which has been overshadowed by the FFELP and DL debate.
Here are the comments from the University of California:
- Concerned about loss of interest rate subsidy and their ability to fund it:
- SAFRA also appears to eliminate the loan forgiveness benefits for new borrowers:
- The new proposal also would impact servicing contracts (a recent SLA Flash Survey found that over 83% of schools outsource their Perkins Loan activities):
What do other financial aid administrators think?