This AskRegs Knowledgebase Q&A was updated on February 2, 2021 to reflect the U.S. Department of Education StudentAid.gov announcement, which extends the federal student loan administrative forbearance period, the pause in interest accrual, and the suspension of collections activity through September 30, 2021 for all federally held student loans
No. According to guidance NASFAA has received from the U.S. Department of Education (ED), if your institution chooses to extend the zero percent (0%) interest benefit to institutionally held Federal Perkins Loans, the institution does not need to reimburse its Perkins Revolving Fund for the lost interest. The option to offer zero percent interest until September 30, 2021 is not an incentive repayment plan created by the institution under 34 CFR 674.33(f).
Both payments and interest are automatically suspended on all federally held Perkins Loans from March 13, 2020, through September 30, 2021. The April 3, 2020 Electronic Announcement expands coverage to Federal Perkins Loans held by schools. On a voluntary basis, schools that hold Perkins Loans may choose to provide the same suspension of interest and payments to the loans they hold.
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