01 Jul Resolution Regarding Perkins Loan Program

by Neville R. Brown, Associate Director of Financial Aid, Eastern CT State University

Dear CAPFAA Colleagues:

Reps. Messer (R-IN) and Pocan (D-WI) have introduced a resolution in support of the continuation of the Perkins Loan Program:  H Res 2942 for Perkins

Reps. Messer and Pocan are looking for additional sponsors in Congress, and NASFAA encourages you to reach out to your Representatives and Senators, in order to encourage them to sign onto the resolution!

When you reach out, you may reference the letter below from Reps. Messer and Pocan, and the actual resolution itself.

Please keep me/NASFAA in the loop on any reactions from Congress.

Support the Perkins Loan Program

From: The Honorable Mark Pocan

Sent By: mailto:alicia.molt@mail.house.gov>

Bill: H.Res. 294

Date: 6/9/2015

Dear Colleague-

We have introduced a bipartisan resolution (H.Res.294) in support of the Perkins Loan Program.

As Congress begins consideration of the Higher Education Act during the 114th Congress, we strongly believe that this program needs to be reauthorized and hope you will join us in voicing bipartisan support for this critical program.

Perkins Loans are need-based loans which foster access to higher education for low income students by providing low interest loans to students in need. Perkins Loans borrowers are predominantly from lower income families and are often the first in their family to attend college.

The success of the Perkins Loan program is a result of the central role of the education institutions that originate the loans, counsel their students through repayment, and select contractors for servicing and collection.

Colleges and universities tailor the program to best fit borrowers’ and institutions’ situations. Perkins is a risk-sharing program with institutions contributing one-third of their students’ awards. This “ownership interest” also contributes to the successful management of this vital program.

-67% of Perkins borrowers are dependent students – 34% of whom are from families with household incomes of less than $30,000.

-20% of Perkins borrowers are independent students, 70% of whom have personal incomes of less than $20,000.

-13% are graduate students, for whom no other low-cost subsidized loan program is available.

The Perkins Loan program is scheduled to expire on September 30, 2015 if Congress does not act to reauthorize this program. If the Perkins Loan is eliminated, students in Wisconsin, Indiana, and across the country will not be able to access much-needed financial aid.  Please contact Alicia Molt in Rep. Pocan’s office at mailto:Alicia.molt@mail.house.gov> or Molly Newell in Rep. Messer’s office mailto:atmolly.newell@mail.house.gov> if you would like to cosponsor this resolution.

Sincerely,

Mark Pocan                          Luke Messer

Member of Congress          Member of Congress