(This measure has not been amended since it was passed by the Senate on December 16, 2015. The summary of that version is repeated here.)
Federal Perkins Loan Program Extension Act of 2015
(Sec. 2) This bill amends title IV (Student Assistance) of the Higher Education Act of 1965 to extend the authority of institutions of higher education (IHEs) to disburse Federal Perkins Loans to new undergraduate borrowers through September 30, 2017. A student must first exhaust Federal Direct Subsidized and Unsubsidized Stafford Loan eligibility.
IHEs may continue to disburse Perkins Loans to current undergraduate borrowers through September 30, 2017. A student must first exhaust all Federal Direct Subsidized Stafford Loan eligibility.
IHEs may continue to disburse Perkins Loans to certain graduate borrowers through September 30, 2016, to enable students to continue or complete an academic program. A student must have received a Perkins loan prior to October 1, 2015.
The bill prohibits Perkins Loan disbursement beyond September 30, 2017.
It also prohibits authorization of additional appropriations for the Federal Perkins Loan program beyond September 30, 2016.
Beginning October 1, 2017, each participating IHE must pay to the Department of Education: (1) a portion of the federal share of the balance of its Perkins Loan funds; (2) a portion of the Perkins student loan payments, including principal and interest, received by the institution; and (3) a capital distribution from its Perkins Loan fund.
(Sec. 3) The bill also expands disclosure requirements for IHEs that participate in the Federal Perkins Loan program.
Specifically, prior to Perkins Loan disbursement, an IHE must provide notice and explanation to all borrowers regarding unavailability of future Perkins loans, limited Perkins loan repayment and forgiveness options, and Direct Loan consolidation options. Also, an IHE must provide notice and explanation to new and current undergraduate borrowers regarding a comparison of Perkins and Direct loan interest rates.