Perkins loan borrowers will be notified by email and/or mail when the Perkins Loan has been awarded on the account. Once the Perkins Loan has been awarded, the student may then complete the entrance counseling and Master Promissory Note.
After your loan is disbursed, you have the option to cancel all or part of the loan within certain time frames. Your promissory note and Perkins Loan Coordinator will explain the procedures and time frames for canceling your loan.
The University of The Arts is the lender for Federal Perkins Loans, which are serviced by the school's contracted service agency, ACS. Perkins Loan repayments are made to either UArts or to ACS . If you cannot make payments on your loan after the grace period, you may be able to postpone repayment by pursuing deferment or forbearance. For more information, contact the Perkins Loan Coordinator.
NEVER ignore delinquency or default notices from your loan servicer. If you don't make your quarterly loan payments, you will become delinquent on your student loan and risk going into default. Contact your servicer immediately if you are having trouble making payments or won't be able to pay on time. You are responsible for any delinquencies or defaults on a Perkins Loan. Therefore, if you do not defer Perkins loans from schools other than UArts, you run the risk of having negative credit information reported to credit bureaus and possibly losing access to future federal student aid
What is a Perkins Loan?
Perkins Loans are low interest (currently 5%), long term loans made through the school financial aid offices to help needy undergraduate and graduate students pay for postsecondary education.
How much can a student borrow?
Perkins Loan limits
Annual maximum loan:
Aggregate maximum loan:
Grade levels 1 & 2 - $11,000
Grade levels 3 & 4 - $27,500
Entrance and Exit Interviews?
Complete entrance/exit counseling.
Master Promissory Note?
Electronically sign your Master Promissory Note.
*you will need your FSA ID / password to complete the MPN
Is there a grace period?
A Perkins borrower is entitled to an initial grace period of 9 consecutive months after dropping below 1/2-time enrollment. If the borrower who returns to school on at least a 1/2-time basis before the 9 months have elapsed, the initial grace period has not been used. The borrower will be is entitled to a full initial grace period (9 consecutive months) from the date that he or she graduates, withdraws, or drops below 1/2-enrollment again.
Schools may require the borrower to make payments on a monthly, bimonthly, or quarterly basis. Each of the borrower's payments must sufficiently cover the interest accruing between payments to ensure that the loan is repaid in 10 years.
A Direct Consolidation Loan allows you to combine multiple federal loans into one loan. Once the consolidation is complete, you will have a single monthly payment on the new Direct Consolidation Loan instead of multiple monthly payments on the loans you consolidated. To apply for consolidation, please log into www.studentloans.gov . Once you are signed in, choose option to “complete direct consolidation loan application and promissory note”.
*you will need your FSA ID / password to complete the consolidation application*
Forbearance is usually a temporary postponement of payments. Forbearance is available for all loans made under the Federal Perkins Loan Program, regardless of when they were made. Schools may grant forbearance to borrowers who are experiencing financial hardship, poor health, or for other acceptable reasons.
Under certain circumstances, a borrower is entitled to have the repayment of a loan deferred. During deferment, the borrower is not required to pay loan principal and interest does not accrue. After each deferment, the borrower is entitled to a post-deferment grace period of 6 consecutive months.
Total and Permanent Disability?
Beginning July 1, 2013 Borrowers is required to login to http://www.disabilitydischarge.com to apply for Total and Permanent Disability Discharge eligibility. Once, the online application is complete, your school representative will be notified.
For military, teachers/public servants (with the exception of Head Start and volunteer service), the cancellation rate per completed year of qualifying full-time service is:
• 15% of the original principal loan amount—plus the interest that accrued during the year—for each of the first and second years;
• 20% of the original principal loan amount—plus the interest that accrued during the year—for each of the third and fourth years; and
• 30% of the original principal loan amount—plus any interest that accrued during the year—for the fifth year.
A "year of service" consists of 12 consecutive months of service, except for teaching service, where the borrower must teach full-time for a full academic year or its equivalent.