1101 Vermont Avenue N.W., Suite 400

Coalition of Higher Education Assistance Organizations

1101 Vermont Avenue N.W., Suite 400

Washington, D.C.20005-3586

(202) 289-3910 Fax(202) 371-0197

June 6, 2017

The Honorable XX

US House of Representatives

XX House Office Building

Washington, DC 20515

Dear Representative XX:

Without Congressional action, the Perkins Loan Program will expire September 30, 2017. Fortunately, Representatives Elise Stefanik (R-NY) and Mark Pocan (D-WI) have introduced the Perkins Loan Extension Act of 2017 (H.R. 2482), which would extend the authority to make Perkins Loans to September 30, 2019.

The Coalition of Higher Education Assistance Organizations (COHEAO) strongly urges the House of Representatives to pass H.R.2482 as soon as possible, so that students can continue to access this vital student aid program. This bipartisan legislation will continue Perkins Loans—a vitally important tool for about 500,000 students and families—as Congress continues its work on a full reauthorization of the Higher Education Act (HEA).

Perkins Loans are an invaluable component of an institution's and student’s financial aid resources. The, low fixed interest rate and generous cancellation benefits targeted toward designated professions in areas of national need are both unique and critical, particularly for low and moderate-income students. If Perkins Loans are eliminated, some 500,000 students will lose access to nearly $1 billion in targeted, affordable student loans. According to the most recent data available:

• 67% of Perkins borrowers are dependent students - 34% of whom are from families with household incomes of less than $30,000.
• 20% of Perkins borrowers are independent students, 70% of whom have personal incomes of less than $20,000.

The success of this loan program is a result of the central role played by higher education institutions that originate the loans, counsel their students, and work closely with the students throughout their entire repayment process. The Perkins Loan Program is also a risk-sharing program in which institutions contribute at least one-third of the funds that go towards their students’ loans. This “ownership interest” greatly contributes to the successful management of this vital program.

Throughout the 59-year history of the Perkins Loan Program, $7.9 billion in federal contributions have been leveraged with institutional contributions into over $37 billion in low-cost loans to more than 30 million students of need. The fact that this program provides critical support each year to more than a half-million students across the country, operating solely right now on the existing revolving fund dollars, is simply remarkable. Perkins Loans are clearly one of the most effective and efficient public-private partnerships in the federal government.

COHEAO is asking all Members of Congress to cosponsor the Perkins Loan Extension Act of 2017. If your office needs additional information on cosponsoring the bill, please contact Patrick Hester () of Representative Stefanik’s office or Alicia Molt () of RepresentativePocan’s office.

As Congress considers the reauthorization of the Higher Education Act, it is critical for students to continue to have access to existing aid programs. If you or your staff have any questions on Perkins Loans, please do not hesitate to contact Harrison Wadsworth, COHEAO’s Executive Director, at (202) 289-3910 or .

Sincerely,

Maria Livolsi, COHEAO President