Financial Services - Cashiers and Student Accounts Office
Your Rights and Responsibilities as a Federal Perkins Loan Borrower
Acceptance of a Federal Perkins loan creates a binding legal obligation. Therefore, it is extremely important that you understand your rights and responsibilities and you agree to honor them. You must respond promptly to any communications you receive regarding your Federal Perkins loan until it is paid in full. Report any of the following changes immediately:
- Your name changes
- Your address changes
- Your parent's address change
- You drop below full time student status
- You enter into a teaching contract
- You withdraw from school
- You transfer to another school
- You join the military service
- You join the Peace Corps.
- You become disabled
At the time you leave school, or just prior to it, you are entitled to an exit interview. During this interview, your repayment schedule is executed and made a part of your promissory note. Your first payment is due 9 months from the date you leave school or drop below half-time status, whichever comes first. As payments become due, interest accrues on your unpaid balance at an annual percentage Rate of 5%. Payments are based upon the total amount borrowed and are subject to a minimum of $40.00 per month.
If at any time you are unable to make a scheduled monthly payment on time, you should contact the school by phone or in writing immediately. You always have the right to prepay all or any portion of your student loan without a penalty.
Your promissory note allows for deferment of your repayments and cancellation of all or part of your loan under certain circumstances. Applications for deferment or cancellation should be submitted to the Cashiers and Student Accounts Office, Loan Section. Our office sends you an approval or disapproval with an explanation of our action, along with the due date of your next payment or application form. Do not allow payments to become past due because you think you are entitled to a deferment or cancellation of your student loan.
Your loan is one of the first opportunities to establish good credit. According
to Federal law we are required to notify a national credit bureau of your debt,
and your co-maker's also, if applicable. We send updates to the credit bureau
for the life of your student loan. A favorable rating on your loan will put
you in good standing when you need credit elsewhere. A bad rating will affect
both you and your co-maker. We hope you agree that your loan is a serious business
transaction
that deserves to be treated in a professional manner.