This assessment provides you with an opportunity to review procedures
regarding the Federal Perkins Loan Awarding And Disbursing requirements.
Additional links are provided to assist you in the evaluation of your
awarding and disbursing of Federal Perkins Loans.

In addition, we recommend that you review and evaluate your Federal
Perkins Loans Awarding and Disbursing policies and procedures. The
related links are listed at the end of the assessment.

![](media/image1.png){width="2.3333333333333335in"
height="0.6972222222222222in"} Activity 3: Perkins Loan Disbursement
File Review

**Why start with the file review?**

The file review will provide a worksheet that will help you determine if
the Federal Perkins Loan requirements were followed. This is a great
activity to start with the evaluation of your Awarding and Disbursing of
Federal Perkins Loans.

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

**Activity Bar:** Activity 1: Perkins Federal & Non-Federal Share;
Activity 2: Perkins Loan Account Requirements; Activity 3: Perkins Loan
Disbursement File Review

**Core Links for this page:** [2006-07 FSA Handbook, Campus-Based
Programs, Chapter
1](http://ifap.ed.gov/sfahandbooks/attachments/0607Vol6Ch1FiscalRecords.pdf);
[2006-07 FSA Handbook, Processing Aid & Managing FSA Funds, Chapter
3](http://ifap.ed.gov/sfahandbooks/attachments/0607Vol4Ch3.pdf); 2006-07
[FSA Handbook, Student Eligibility, Chapter
3](http://ifap.ed.gov/sfahandbooks/attachments/0607FSAHBkVol1Ch3.pdf)

+--------------------------------------------------------+-------------+
| ## Federal Perkins Loan Awarding and Disbursing        | # Ac        |
|                                                        | tivity Link |
+--------------------------------------------------------+-------------+
| Administrative Cost Allowance (ACA)                    |             |
| [673.7](http://frwebgate.access.gpo.gov/cgi-           |             |
| bin/get-cfr.cgi?TITLE=34&PART=673&SECTION=7&TYPE=TEXT) |             |
+--------------------------------------------------------+-------------+
| ## Purpose and identification of common provi          |             |
| sions [**674.1**](http://frwebgate.access.gpo.gov/cgi- |             |
| bin/get-cfr.cgi?TITLE=34&PART=674&SECTION=1&TYPE=TEXT) |             |
+--------------------------------------------------------+-------------+
| ## Defini                                              |             |
| tions [**674.2**](http://frwebgate.access.gpo.gov/cgi- |             |
| bin/get-cfr.cgi?TITLE=34&PART=674&SECTION=2&TYPE=TEXT) |             |
+--------------------------------------------------------+-------------+
| Federal Perkins Loan Program cohort default rate and   |             |
| penalties 674.5: A borrower who is in default on an    |             |
| FSA loan is not eligible for a Perkins Loan unless he  |             |
| or she has regained eligibility (Please see            |             |
| [674.5(f)](http://frwebgate.access.gpo.gov/cgi-        |             |
| bin/get-cfr.cgi?TITLE=34&PART=674&SECTION=5&TYPE=TEXT) |             |
| and 2006-07 FSA Handbook, Student Eligibility, Chapter |             |
| 3 for more information). However, a borrower who       |             |
| satisfies any of the conditions that remove his loan   |             |
| from the school's cohort default rate becomes eligible |             |
| for additional Perkins Loans (See                      |             |
| [674.5(c)(3)](http://frwebgate.access.gpo.gov/cgi-     |             |
| bin/get-cfr.cgi?TITLE=34&PART=674&SECTION=5&TYPE=TEXT) |             |
| for a description of loans not included in the         |             |
| school's cohort default rate).                         |             |
+--------------------------------------------------------+-------------+
| ## Program Participation Agreement [**674.8**](htt     |             |
| p://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE |             |
| =34&PART=674&SECTION=8&TYPE=TEXT), Allocation of Funds |             |
|  [**673.4(a)**](http://frwebgate.access.gpo.gov/cgi-bi |             |
| n/get-cfr.cgi?TITLE=34&PART=673&SECTION=4&TYPE=TEXT),  |             |
| [**674.8(a)(2)**](http://frwebgate.access.gpo.gov/cgi- |             |
| bin/get-cfr.cgi?TITLE=34&PART=674&SECTION=8&TYPE=TEXT) |             |
+--------------------------------------------------------+-------------+
| Student Eligibility Criteria:                          | Activity 3: |
| [674.9](http://frwebgate.access.gpo.gov/cgi-           | Perkins     |
| bin/get-cfr.cgi?TITLE=34&PART=674&SECTION=9&TYPE=TEXT) | Loan        |
| for specific Student Eligibility requirements related  | D           |
| to Federal Perkins Loans. Pell Eligibility             | isbursement |
| [674.9(d)](http://frwebgate.access.gpo.gov/cgi-b       | File Review |
| in/get-cfr.cgi?TITLE=34&PART=674&SECTION=9&TYPE=TEXT), |             |
| requirements [(668.32 through                          |             |
| 668.39)](http://ecfr.gpoaccess.gov/cgi/                |             |
| t/text/text-idx?c=ecfr&sid=c9494733a23741be75ce8706e40 |             |
| a9926&rgn=div6&view=text&node=34:3.1.3.1.34.3&idno=34) |             |
| and [(668.130 through                                  |             |
| 668.139)](http://ecfr.gpoaccess.gov/cgi/t/t            |             |
| ext/text-idx?c=ecfr&sid=c9494733a23741be75ce8706e40a99 |             |
| 26&rgn=div6&view=text&node=34:3.1.3.1.34.9&idno=34).). |             |
| Willingness to Repay                                   |             |
| [674.9(e)](http://frwebgate.access.gpo.gov/cgi-        |             |
| bin/get-cfr.cgi?TITLE=34&PART=674&SECTION=9&TYPE=TEXT) |             |
| Previous Disability Cancellation [674.9(g) and         |             |
| (h)](http://frwebgate.access.gpo.gov/cgi-              |             |
| bin/get-cfr.cgi?TITLE=34&PART=674&SECTION=9&TYPE=TEXT) |             |
| Medical Internship or Residency [HEA                   |             |
| 464(c)(2)(A)(i)](http://ed                             |             |
| workforce.house.gov/publications/heacomp/hea65p3.pdf), |             |
| Incarcerated Students                                  |             |
| [6                                                     |             |
| 68.32(c)(2)(ii)](http://frwebgate.access.gpo.gov/cgi-b |             |
| in/get-cfr.cgi?TITLE=34&PART=668&SECTION=32&TYPE=TEXT) |             |
| , Teacher Certification Programs                       |             |
| [66                                                    |             |
| 8.32(a)(1)(iii)](http://frwebgate.access.gpo.gov/cgi-b |             |
| in/get-cfr.cgi?TITLE=34&PART=668&SECTION=32&TYPE=TEXT) |             |
|                                                        |             |
| Borrowers in Default [HEA                              |             |
| 464(b)(1)](http://e                                    |             |
| dworkforce.house.gov/publications/heacomp/hea65p3.pdf) |             |
+--------------------------------------------------------+-------------+
| ## Selection of Students for Loans 674.10, Except      |             |
| ional Need [**674.10(a)(1)**](http://frwebgate.access. |             |
| gpo.gov/cgi-bin/get-cfr.cgi?TITLE=34&PART=674&SECTION= |             |
| 10&TYPE=TEXT) Independent and Less-Than-Full-Time Stud |             |
| ents [674.10(b)](http://frwebgate.access.gpo.gov/cgi-b |             |
| in/get-cfr.cgi?TITLE=34&PART=674&SECTION=10&TYPE=TEXT) |             |
+--------------------------------------------------------+-------------+
| ## Loan Maxim                                          |             |
| ums [**674.12**](http://frwebgate.access.gpo.gov/cgi-b |             |
| in/get-cfr.cgi?TITLE=34&PART=674&SECTION=12&TYPE=TEXT) |             |
+--------------------------------------------------------+-------------+
| ## Reimbursement to t                                  |             |
| he Fund [674.13](http://frwebgate.access.gpo.gov/cgi-b |             |
| in/get-cfr.cgi?TITLE=34&PART=674&SECTION=13&TYPE=TEXT) |             |
+--------------------------------------------------------+-------------+
| ## Making and disbursing                               |             |
| loans [674.16](http://frwebgate.access.gpo.gov/cgi-bin |             |
| /get-cfr.cgi?TITLE=34&PART=674&SECTION=16&TYPE=TEXT),  |             |
| General Disbursement Requirements, See [668.161 throug |             |
| h 668.167](http://ecfr.gpoaccess.gov/cgi/t/text/text-i |             |
| dx?c=ecfr&sid=c9494733a23741be75ce8706e40a9926&rgn=div |             |
| 6&view=text&node=34:3.1.3.1.34.11&idno=34). Counseling |             |
|  Students [674.16(a)](http://frwebgate.access.gpo.gov/ |             |
| cgi-bin/get-cfr.cgi?TITLE=34&PART=674&SECTION=16&TYPE= |             |
| TEXT), [**674.16(a)**](http://frwebgate.access.gpo.gov |             |
| /cgi-bin/get-cfr.cgi?TITLE=34&PART=674&SECTION=16&TYPE |             |
| =TEXT), 2006-07 FSA Handbook, Campus-Based Programs, C |             |
| hapter 3, pages 6-52 through 6-54, Power of Attorney [ |             |
| **674.16(h)**](http://frwebgate.access.gpo.gov/cgi-bin |             |
| /get-cfr.cgi?TITLE=34&PART=674&SECTION=16&TYPE=TEXT),  |             |
| Frequency of Disbursements [674.16(b)](http://frwebgat |             |
| e.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=34&PART=674 |             |
| &SECTION=16&TYPE=TEXT), Uneven Costs [674.16(c)](http: |             |
| //frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=3 |             |
| 4&PART=674&SECTION=16&TYPE=TEXT), Paying Students befo |             |
| re the Student begins attendance [674.16(f)](http://fr |             |
| webgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=34&PA |             |
| RT=674&SECTION=16&TYPE=TEXT), Credit Bureau Reporting  |             |
| [**674.16(i)**](http://frwebgate.access.gpo.gov/cgi-bi |             |
| n/get-cfr.cgi?TITLE=34&PART=674&SECTION=16&TYPE=TEXT), |             |
|  The Department of Education considers the Federal Per |             |
| kins Loan Program to be a credit assistance program au |             |
| thorized by federal law for the benefit of an economic |             |
| ally disadvantaged class of persons within the meaning |             |
|  of [**12 CFR 202.8(a)(1)**](http://frwebgate.access.g |             |
| po.gov/cgi-bin/get-cfr.cgi?TITLE=12&PART=202&SECTION=8 |             |
| &TYPE=TEXT). Therefore, a school may request that a lo |             |
| an applicant disclose marital status, income from alim |             |
| ony, child support, and spouse's income and signature. |             |
+--------------------------------------------------------+-------------+
| **Federal Interest in allocated funds --transfer of    |             |
| funds                                                  |             |
| [674.17](http://frwebgate.access.gpo.gov/cgi-bin       |             |
| /get-cfr.cgi?TITLE=34&PART=674&SECTION=17&TYPE=TEXT)** |             |
+--------------------------------------------------------+-------------+
| **Use of Funds                                         |             |
| [674.18](http://frwebgate.access.gpo.gov/cgi-bi        |             |
| n/get-cfr.cgi?TITLE=34&PART=674&SECTION=18&TYPE=TEXT), |             |
| Transfer of Funds                                      |             |
| [674.18(b)](http://frwebgate.access.gpo.gov/cgi-bin    |             |
| /get-cfr.cgi?TITLE=34&PART=674&SECTION=18&TYPE=TEXT)** |             |
+--------------------------------------------------------+-------------+
| **Fiscal procedures and records 674.19, Recordkeeping  | **Activity  |
| Requirements                                           | 1: Perkins  |
| [668.24](http://frwebgate.access.gpo.gov/cgi-bi        | Federal &   |
| n/get-cfr.cgi?TITLE=34&PART=668&SECTION=24&TYPE=TEXT); | Non-Federal |
| [674.10©](http://frwebgate.access.gpo.gov/cgi-bi       | Share**     |
| n/get-cfr.cgi?TITLE=34&PART=674&SECTION=10&TYPE=TEXT), |             |
| See                                                    | **Activity  |
| [668.24](http://frwebgate.access.gpo.gov/cgi-b         | 2: Perkins  |
| in/get-cfr.cgi?TITLE=34&PART=668&SECTION=24&TYPE=TEXT) | Loan        |
| and [674.10                                            | Account     |
| (c)](http://frwebgate.access.gpo.gov/cgi-b             | Req         |
| in/get-cfr.cgi?TITLE=34&PART=674&SECTION=10&TYPE=TEXT) | uirements** |
| for specific requirements.                             |             |
| [(668.24(d))](http://frwebgate.access.gpo.gov/cgi-bin/ |             |
| get-cfr.cgi?TITLE=34&PART=668&SECTION=24&TYPE=TEXT)**. |             |
| **Account Requirements: Please refer to the Cash       |             |
| Management Regulations by accessing the following      |             |
| link: [668.161 through                                 |             |
| 668.166](http://ecfr.gpoaccess.gov/cgi/t/te            |             |
| xt/text-idx?c=ecfr&sid=c9494733a23741be75ce8706e40a992 |             |
| 6&rgn=div6&view=text&node=34:3.1.3.1.34.11&idno=34),** |             |
| Promissory Note                                        |             |
| [674.19](http://frwebgate.access.gpo.gov/cgi-b         |             |
| in/get-cfr.cgi?TITLE=34&PART=674&SECTION=19&TYPE=TEXT) |             |
| [674.31](http://frwebgate.access.gpo.gov/cgi-bi        |             |
| n/get-cfr.cgi?TITLE=34&PART=674&SECTION=31&TYPE=TEXT), |             |
| **[674.19](http://frwebgate.access.gpo.gov/cgi-bi      |             |
| n/get-cfr.cgi?TITLE=34&PART=674&SECTION=19&TYPE=TEXT), |             |
| [674.19(e)](http://frwebgate.access.gpo.gov/cgi-bin/   |             |
| get-cfr.cgi?TITLE=34&PART=674&SECTION=19&TYPE=TEXT),** |             |
| Perkins MPN                                            |             |
| [DCL                                                   |             |
| -CB-03-11](http://ifap.ed.gov/dpcletters/CB0311.html), |             |
| [**DCL                                                 |             |
| C                                                      |             |
| B-03-13**](http://ifap.ed.gov/dpcletters/CB0313.html); |             |
| [**DCL                                                 |             |
| C                                                      |             |
| B-03-14**](http://ifap.ed.gov/dpcletters/CB0314.html); |             |
| [**DCL                                                 |             |
| GE                                                     |             |
| N-01-06**](http://ifap.ed.gov/dpcletters/gen0106.html) |             |
+--------------------------------------------------------+-------------+
| **Compliance with equal credit opportunity             |             |
| requirements                                           |             |
| [674.20](http://frwebgate.access.gpo.gov/cgi-bi        |             |
| n/get-cfr.cgi?TITLE=34&PART=674&SECTION=20&TYPE=TEXT), |             |
| A school must comply with the equal credit opportunity |             |
| requirements of** Regulation B (12 CFR Part 202)**.**  |             |
+--------------------------------------------------------+-------------+
| **Policies and Procedures**                            | **Activity: |
|                                                        | (Link to    |
|                                                        | Chart)**    |
+--------------------------------------------------------+-------------+