**Federal Perkins Repayment**

**This assessment provides you with an opportunity to review procedures
regarding the Federal Perkins Repayment process. Additional links are
provided to assist you in the evaluation of your repayment or
collections efforts.**

**In addition, we recommend that you review and evaluate your Federal
Perkins Due Diligence policies and procedures.**

**The related links are listed at the end of the assessment.**

![](media/image1.png){width="2.3333333333333335in"
height="0.6972222222222222in"} **Activity 2: Establishing a Repayment
Plan File Review**

**Why start with the Repayment Plan File Review?**

# The file review worksheet provides you the opportunity to review a sample of students who are in repayment. After completing the worksheet for each student, the school should ensure that the proper requirements for met for each student. 

Note: If your school uses a third-party servicer for collection
activities, it is still important for your school to determine that
requirements are met for your students. The school is responsible for
any inaccuracies performed by their servicer.

This activity will help you identify how well your procedures are
working at your institution.

Should you identify areas requiring a corrective action, we recommend
that you complete the Management Enhancement Worksheet: LINK:
[Management Enhancement
Worksheet](http://ifap.ed.gov/qamodule/MgtEnhancementWk.html)

**Activity Bar: Activity 1: Grace Periods; Activity 2: Establishing A
Repayment Plan; Activity 3: Bankruptcy Discharges;**

**Activity 4: Total & Permanent Disability;**

**Additional Links: [2006-07 FSA Handbook, Campus-Based Programs,
Chapter
4](http://ifap.ed.gov/sfahandbooks/attachments/0607Vol6Ch4RayForbDefCanc.pdf);
[Federal Register
5/9/2001](http://ifap.ed.gov/fregisters/FR05092001.html); [Federal
Register November 1,
2000](http://ifap.ed.gov/fregisters/1101200010.html); [DCL
CB-02-08](http://ifap.ed.gov/dpcletters/CB0208.html);
[DCL-CB-02-18](http://ifap.ed.gov/dpcletters/cb0218.html); [Closed
School
Link](http://studentaid.ed.gov/PORTALSWebApp/students/english/closedschool.jsp?tab=attending)**

+-----------------------------------------+----------------------------+
| ## Federal Perkins Due Repayment        | **Activity Link**          |
+-----------------------------------------+----------------------------+
| ## Grace                                | **Activity 1 Grace         |
|  Periods [**674.2**](http://frwebgate.a | Periods**                  |
| ccess.gpo.gov/cgi-bin/get-cfr.cgi?TITLE |                            |
| =34&PART=674&SECTION=2&TYPE=TEXT), [**6 |                            |
| 74.31**](http://frwebgate.access.gpo.go |                            |
| v/cgi-bin/get-cfr.cgi?TITLE=34&PART=674 |                            |
| &SECTION=31&TYPE=TEXT), [**674.32**](ht |                            |
| tp://frwebgate.access.gpo.gov/cgi-bin/g |                            |
| et-cfr.cgi?TITLE=34&PART=674&SECTION=32 |                            |
| &TYPE=TEXT), [**668.22**](http://frwebg |                            |
| ate.access.gpo.gov/cgi-bin/get-cfr.cgi? |                            |
| TITLE=34&PART=668&SECTION=22&TYPE=TEXT) |                            |
+-----------------------------------------+----------------------------+
| **Establishing a Repayment Plan         | **Activity 2 Establishing  |
| [674.31](http://frwebga                 | a Payment Plan**           |
| te.access.gpo.gov/cgi-bin/get-cfr.cgi?T |                            |
| ITLE=34&PART=674&SECTION=31&TYPE=TEXT), |                            |
| [674.33 (a through                      |                            |
| f)](http://frwebgat                     |                            |
| e.access.gpo.gov/cgi-bin/get-cfr.cgi?TI |                            |
| TLE=34&PART=674&SECTION=33&TYPE=TEXT)** |                            |
+-----------------------------------------+----------------------------+
| **Multiple Loans at the Same            |                            |
| School/Loans From Multiple Schools      |                            |
| [674.33(b)(2)](http://frwebga           |                            |
| te.access.gpo.gov/cgi-bin/get-cfr.cgi?T |                            |
| ITLE=34&PART=674&SECTION=33&TYPE=TEXT), |                            |
| 2006-07 FSA Handbook, Campus-Based      |                            |
| Programs, Chapter 4, pages 6-66 through |                            |
| 6-67**                                  |                            |
+-----------------------------------------+----------------------------+
| **Hardship Payment Reduction            |                            |
| [674.33(b)(5)](http://frwebgat          |                            |
| e.access.gpo.gov/cgi-bin/get-cfr.cgi?TI |                            |
| TLE=34&PART=674&SECTION=33&TYPE=TEXT)** |                            |
+-----------------------------------------+----------------------------+
| **Discharges due to school closure      |                            |
| [674.33(g)](http://frwebgat             |                            |
| e.access.gpo.gov/cgi-bin/get-cfr.cgi?TI |                            |
| TLE=34&PART=674&SECTION=33&TYPE=TEXT)** |                            |
+-----------------------------------------+----------------------------+
| **Bankruptcy Discharges                 | **Activity 3 Bankruptcy    |
| [674.49](http://frwebgat                | Discharges**               |
| e.access.gpo.gov/cgi-bin/get-cfr.cgi?TI |                            |
| TLE=34&PART=674&SECTION=49&TYPE=TEXT)** |                            |
+-----------------------------------------+----------------------------+
| **Chapter 13 Bankruptcies [11 U.S.C.    |                            |
| 1325](http://www                        |                            |
| 4.law.cornell.edu/uscode/11/1325.html); |                            |
| [11 U.S.C.                              |                            |
| 1307](http://www4                       |                            |
| .law.cornell.edu/uscode/11/1307.html)** |                            |
+-----------------------------------------+----------------------------+
| **Resuming/Terminating Billing and      |                            |
| Collection [11 U.S.C.                   |                            |
| 727](http:                              |                            |
| //www4.law.cornell.edu/uscode/html/usco |                            |
| de11/usc_sec_11_00000727----000-.html), |                            |
| [11 U.S.C.                              |                            |
| 1141](http:                             |                            |
| //www4.law.cornell.edu/uscode/html/usco |                            |
| de11/usc_sec_11_00001141----000-.html), |                            |
| [11 U.S.C.                              |                            |
| 1228](http:                             |                            |
| //www4.law.cornell.edu/uscode/html/usco |                            |
| de11/usc_sec_11_00001228----000-.html), |                            |
| [11 U.S.C.                              |                            |
| 1328(a)](http://www                     |                            |
| 4.law.cornell.edu/uscode/11/1328.html), |                            |
| or [11 U.S.C.                           |                            |
| 1328(b)](http://www4                    |                            |
| .law.cornell.edu/uscode/11/1328.html)** |                            |
+-----------------------------------------+----------------------------+
| **Bankruptcy and Student Eligibility    |                            |
| (Section                                |                            |
| [525(c)](http                           |                            |
| ://www4.law.cornell.edu/uscode/html/usc |                            |
| ode11/usc_sec_11_00000525----000-.html) |                            |
| of the Bankruptcy Code)**               |                            |
+-----------------------------------------+----------------------------+
| **Total and Permanent Disability        | **Activity 4 Total and     |
| Discharge                               | Permanent Disability**     |
| [674.61](http://frwebgat                |                            |
| e.access.gpo.gov/cgi-bin/get-cfr.cgi?TI |                            |
| TLE=34&PART=674&SECTION=61&TYPE=TEXT)** |                            |
+-----------------------------------------+----------------------------+
| **Death Discharge                       |                            |
| [674.61](http://frwebgat                |                            |
| e.access.gpo.gov/cgi-bin/get-cfr.cgi?TI |                            |
| TLE=34&PART=674&SECTION=61&TYPE=TEXT)** |                            |
+-----------------------------------------+----------------------------+
| **Policies and Procedures**             | **Activity: (Link to       |
|                                         | Chart)**                   |
+-----------------------------------------+----------------------------+