Sunday, October 18, 2015

Colleges may have to return Perkins loan program money - Brian Tumulty, USA Today

About 1,700 colleges and universities could soon be required to return billions of dollars in federal grants they received more than a decade ago under the Perkins loan program for financially needy students. Congress allowed the Perkins loan program to expire on Sept. 30. If lawmakers don't renew it, colleges eventually will have to return the money in the revolving loan funds to the federal government, according to Cyndy Littlefield, vice president for federal relations at the Association of Jesuit Colleges and Universities. Perkins loans carry an interest rate of 5 percent and repayment is delayed until nine months after a student leaves school. Graduates who choose public service careers such as law enforcement, teaching or as a public defender are eligible for loan forgiveness after 10 years on the job.

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