Federal Perkins Loan Alert!

It would be extremely helpful if borrowers of Perkins loans or their parents could take a minute and write to Congress about the importance Perkins has had in your ability to access higher education. Specifically letters asking that Congress reinstate the Perkins Loan Program Federal Capital Contribution and reimbursements for cancelled loans are needed now. Congress is interested in how this loan has made a difference in people’s lives. Previous borrowers who have had a cancellation benefit are especially helpful as each can write a powerful example of the benefit of this loan program to our society. Please help in this effort by faxing or emailing your letter to members of the House and Senate today.

This is extremely important in order to support advocates in Congress who are currently working to reinstate Perkins Loan funding! We need to seize the chance to get Perkins Loan funding restored before we loose this important loan program.

If you do not know your House Representative contact information, visit www.house.gov and fill in your zip code and it will direct you to member information. You will find Senator contact information at www.senate.gov – click “Find Your Senator” (upper right hand corner) – click on Senator’s name – click icon to send e-mail.

Sample Letter

The Honorable XXX

U.S. Senate/House of Representatives

XXX Office Building

Washington, DC 20510

Dear Senator/Congressman XXX:

I am writing to encourage you to support and fund the Perkins Loan Program for fiscal year 2009 in the Labor, Health & Human Services and Education Appropriations bill. Restoration of funding for the Perkins Loan Federal Capital Contribution to $100 million and to fund loan cancellations for public service work at $120 million is important to students at Gonzaga University. As someone who benefits (benefited or receives loan forgiveness) I know Perkins helps ease the loan burden many students face because it reduces the need for students to turn to more expensive private loan programs.

The Federal Capital Contribution is essential because schools contribute matching funds to increase the availability of loans. In this way, the Perkins Loan Program represents a true partnership between the federal government, higher education institutions and students. Schools match a share of the federal funds, which serve students year after year as the loans are repaid and re-lent. Without the federal contribution and its school match, tens of thousands of students across the country will not receive the low-cost loans they need for higher education. Because of the high volume of consolidation loans in previous years, Gonzaga collected $1 million less in the academic year 2007-2008. This means it will reduce loans to needy students by the same amount next year.

Perkins Loan borrowers have the opportunity to cancel loans by working in a variety of public service professions such as teaching, nursing, the military, law enforcement, working with low-income children, and service in the Peace Corps. Providing adequate funding for loan cancellations will fully reimburse schools for the loans they are required by law to cancel. Failing to fully reimburse schools means less money to give to future deserving students. Funding for loan cancellation is needed to make up for shortfalls in the past.

Perkins loans often make the difference for students who do not otherwise receive enough funds to pay for college. These students are often the first from their family to attend college and usually have the greatest financial need. Many of them are also the people who decide to work in professions that help others.

The Perkins program plays a critical role in financial aid available to students from Gonzaga, especially for needy students. Without a periodic infusion of capital, these loans will wither away, leaving our students without a future.

Restoration of at least $100 million per year for the Federal Capital contribution and $120 million for loan cancellations will make great progress in ensuring that all students, regardless of financial standing, have the opportunity to attend college. Please return this important funding.

Sincerely,

XXX OOOOO