With dramatic change on the horizon for the Perkins Loan program, it seemed an opportune time to understand how the Perkins Loan program is currently being managed today. Thanks to the following financial aid administrators for their technical support on this survey: Margaret Carothers of Pitzer College, David Levy of Scripps College, Elisabeth Rankin of Saint Bonaventure University, Mark Lindenmayer of Loyola University Maryland and Jackie Ito-Woo of University of California.
Here are the complete survey results: Download SLA_Flash_Perkins_Loan_071309
Here is a summary of the results:
- For most schools, Perkins Loans are small part of the overall financial aid package, with 72% of respondents indicating that it made up less than 4% of overall federal student aid
- According to the College Board, Perkins loans made up about about 1.6% of total federal loans for 2007-08
- 54% of respondents indicated that their volume of Perkins loans declined in 2008-09; 27% experienced more than a 20% decline
- 83% of respondents indicated that they outsource some or all of their Perkins Loan
- Collections (83%) and loan servicing (79%) were the most frequently cited activities outsourced
- The four Perkins Loan servicers mentioned most frequently in the survey were ECSI with a 31% share with University Accounting Services (UAS), Campus Partners and Affiliated Computer Services (ACS) each having a 23% share.
- In terms of promissory notes, 52% of respondents indicated they continue to have borrowers sign a paper copy, with 35% having an electronic process in place
- 76% of respondents indicated that their institutions would have difficulty providing institutional funds to reduce the cost of the Perkins Loan for their borrowers