Sec. 4403. Federal Direct Perkins loan allocation
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Part E of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1087aa et seq.) is amended by inserting after section 462 the following: The purposes of this section are— to allocate, among eligible and participating institutions (as such terms are defined in this section), the authority to make Federal Direct Perkins Loans under section 455A with a portion of the annual loan authority described in subsection (b)(1); and to make funds available, in accordance with section 452, to each participating institution from a portion of the annual loan authority described in subsection (b), in an amount not to exceed the sum of an institution’s allocation of funds under subparagraph
(B)of subsection (b)(1) to enable each such institution to make Federal Direct Perkins Loans to eligible students at the institution. There are hereby made available, from funds made available for loans made under part D, not to exceed $2,400,000,000 of annual loan authority for award year 2021–2022 and each succeeding award year, to be allocated as provided in subparagraph (B). Except as provided in paragraphs (3), (4), and (5), for each award year, the Secretary shall allocate an amount to each participating institution that is equal to— 100 percent of the institutional undergraduate student need (as determined under subparagraph (C)) for the preceding award year; and 25 percent of the institutional graduate student need (as determined under subparagraph (D)) for the preceding award year. The institutional undergraduate student need for a participating institution for an award year shall be equal to the sum of the following: An amount equal to 50 percent of the amount that bears the same proportion to the amount made available under subparagraph
(A)for such award year as the total amount of Federal Pell Grant funds awarded at the participating institution for the preceding award year bears to the total amount of Federal Pell Grant funds awarded at all participating institutions for the preceding award year. An amount equal to 50 percent of the amount that bears the same proportion to the amount made available under subparagraph
(A)for such award year as the total amount of the undergraduate student need at the participating institution for the preceding award year bears to the total amount of undergraduate student need at all participating institutions for the preceding award year. The institutional graduate student need for a participating institution for an award year shall be equal to the amount that bears the same proportion to the amount made available under subparagraph
(A)for such award year as the total amount of the graduate student need at the participating institution for the preceding award year bears to the total amount of graduate student need at all participating institutions for the preceding award year. The Secretary shall not make funds available under this subsection to any eligible institution that is not a participating institution. In no case shall the sum of a participating institution’s allocation of loan authority computed under paragraph (1)(B) be less than the average of the institution’s total principal amount of loans made under this part for each of the academic years 2012–2013 through 2016–2017. If the Secretary determines that the sum of a participating institution’s allocation of loan authority under paragraph (1)(B) is below the minimum amount required under paragraph (3), the Secretary shall— for each participating institution for which the minimum amount under paragraph
(3)is not satisfied, increase the amount of such sum to the amount of the required minimum under such paragraph; and ratably reduce the amount of the sum of such loan authority of all participating institutions not described in subparagraph (A). For award year 2021–2022, in calculating an institution’s undergraduate student need under paragraph (1)(C) and an institution’s graduate student need under paragraph (1)(D), the Secretary may estimate the data with respect to the preceding award year required to make such calculations. In this section: The term annual loan authority means the total original principal amount of loans that may be allocated and made available for an award year to make Federal Direct Perkins Loans under section 455A. The term average cost of attendance has the meaning given the term in section 4202(e)(5)(B). The term graduate student need means, with respect to a graduate student for an award year, the lesser of the following: The amount equal to (except the amount computed by this subparagraph shall not be less than zero)— the average cost of attendance for the preceding award year, minus such graduate student’s expected family contribution (computed in accordance with part F of this title) for the preceding award year. The total annual loan limit for a Federal Direct Unsubsidized Stafford Loan. The term undergraduate student need means, with respect to an undergraduate student for an award year, the lesser of the following: The total of the amount equal to (except the amount computed by this clause shall not be less than zero)— the average cost of attendance for the award year, minus such undergraduate student’s expected family contribution (computed in accordance with part F of this title) for the preceding award year. The total loan annual limit for a Federal Direct Unsubsidized Stafford Loan and a Federal Direct Loan. The term eligible institution means an institution of higher education that participates in the Federal Direct Stafford Loan Program. The term participating institution means an institution of higher education that has an agreement under section 463(f). .
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Sec. 4403
Federal Direct Perkins loan allocation
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