This AskRegs Knowledgebase Q&A was updated on August 11, 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 January 31, 2022 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 January 31, 2022 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 January 31, 2022. 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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