The U.S. Senate failed to take action this week on a last-ditch effort to renew Perkins Loans, allowing the program to lapse, The Chronicle of Higher Education reported. Perkins, the oldest federal student loan program, made college possible for millions of students who would otherwise have been unable to attend or been forced to take on costly private loans.
Both houses of Congress needed to pass legislation renewing the program before the end of the 2015 fiscal year on September 30.
House lawmakers on Monday approved the Higher Education Extension Act of 2015 (H.R. 3594), a one-year extension of the Perkins Loan program. AACRAO, along with a broad coalition of higher education associations, sent a letter to the bill's sponsors Representatives Mike Bishop (R-MI) and Mark Pocan (D-WI) expressing our strong support for the legislation.
"Such an extension is a necessary step to ensure that the over 500,000 students who receive an average of $2,000 in aid through this program are not unduly harmed," the letter stated.
The group sent a companion letter to Senate Health, Education, Labor and Pensions Committee Chairman Lamar Alexander (R-TN) and Ranking Member Patty Murray (D-WA), encouraging lawmakers to approve a similar measure.
But at the urging of Sen. Alexander, who has argued to eliminate the Perkins program as part of an effort to simplify and streamline federal government's student loan programs, the Senate did not follow suit, Inside Higher Ed reported.
Institutions will be able to continue to disperse Perkins Loans to some students who need the financing to finish their degrees, but will not be allowed to distribute any new loans under the expired program.
Related Links
The Chronicle of Higher Education
http://chronicle.com/article/Perkins-Loan-Program-a/233527
Inside Higher Ed
https://www.insidehighered.com/quicktakes/2015/10/01/congress-lets-perkins-loan-program-lapse