(January 2009).The Senate Appropriations Committee yesterday included as part of its version of the massive economic stimulus bill $61 million as a Perkins Loan Capital Contribution. The Senate’s Committee Report description of the funding reads: “The Committee has also included $61,000,000 for Federal Perkins loans capital contributions. The Federal Perkins loan program supports student loan revolving funds built up with capital contributions to participating institutions.”

The bill now goes to the full Senate for consideration, probably the week of February 2, 2009.

The House stimulus bill does not include Perkins FCC funding, but it does include $490 million for Work Study. Campuses, under legislation passed last year, are now permitted to transfer up to 25% of their Work Study funds to their Perkins Loan fund, treating it like a capital contribution (subject to the normal matching requirements.)

The House is expected to pass its version of the stimulus bill tomorrow. A House-Senate conference committee will work out differences to create a final bill once the Senate acts.

Please write your Senators to support inclusion of the Perkins capital contribution in the final stimulus bill.

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