FORMS
ACH
Payment Authorization Form
Deferment/Cancellation Form
Financial Arrangement Form
Family
Educational Rights & Privacy Act (FERPA):
Student Loan Information Release Form
Cancellation Benefits for Perkins/NDSL
General Information
- Cancellation
of principal and interest is granted for working full time in certain fields.
A percentage of total loan borrowed can be cancelled for each year of work.
Typically the cancellation is 15% of the total loan for the 1st and
2nd year, 20% of total loan for the 3rd and 4th
year and 30% for the 5th year.
- To receive a
cancellation, a request for cancellation form must be completed, verified by
employer and returned to: University Accounting Service, P.O. Box 932,
Brookfield, WI 53008-0932. The
borrower will receive confirmation of a processed cancellation form.
- Before a
request for cancellation is made, you will need to file a deferment to defer
your payments for twelve (12) months prior to filing the cancellation form.
Types of cancellations
For complete description and qualifications, please contact the Perkins Loan
Office
Nurse/Medical Technician
– full-time
Law Enforcement/Correction Officer – full-time
Qualified Professional Provider of Early Intervention Services – full-time
Employee of Child or Family Service Agency –full-time
Teaching – full-time Head Start Program
Special Education/Handicapped
Math
Science
Foreign & Bi-Lingual Language
Shortage area for specific state
*All of the above can receive a 100% cancellation
over five years.
Peace Corp/Action Programs-over
4 years – 70%
Military Service- Area hostilities – Hazardous Duty Pay – 12.5% per year up
to 50%
Totally, Permanently Disabled – 100%
Death – 100%
FAQ's
What is a Federal Perkins
Loan?
The
Perkins loan program is a federal loan program that provides low interest (5%)
loans to students who demonstrate exceptional financial need. No interest
accrues on the loan and repayment does not begin until nine months after the
student graduates or is no longer enrolled on at least a half-time basis.
Perkins loans are administered through the Financial Aid Office and funds are
limited. To accept this award, the student must sign a promissory note at the beginning of the semester.
You must repay this loan to Winthrop University.
How much can I borrow?
Depending on when you apply, your level of need, and funding level of Winthrop
University, you can borrow up to
·
Per
Federal guidelines, $4,000
for each year of undergraduate study and the maximum amount of $20,000 as an
undergraduate. Winthrop University allows the current maximum amount of
$2,000 per year for four years.
What are my rights as a
borrower?
·
You may
repay all or part of the loan(s) at any time without penalty.
·
You will
have a grace period after graduation or withdrawing from Winthrop University.
·
You may
defer payments, if eligible.
·
You may
cancel all or part of the loan, if eligible.
What are my
responsibilities as a borrower?
·
You must
make payments on time or notify the Perkins Loan Office if a payment cannot be
made by the due date.
·
You must
notify the Perkins Loan Office of changes in your name, address, phone number,
Social Security number, or enrollment status.
·
You must
file appropriate forms, such as deferment or cancellation, in a timely manner.
·
You must
understand that failure to repay your Perkins Loan will have serious
consequences, such as:
1)
Referral to a collection agency.
2)
Reporting of the past due status of your loan to a national credit
bureau.
3) Loss
of eligibility for deferment or cancellation benefits.
4) Loss
of eligibility for further Federal financial aid.
5)
Placing a hold on registration and academic transcripts.
Is there a charge for this
loan?
A
Perkins Loan borrower is not charged any fees to take out the loan. However, if
you skip a payment, make a payment late, or make less than a full payment, you
will be
assessed a late charge. If your failure to make payments persists, your account
will be referred to a collection agency
at which time collection costs will be added.
How will I be paid?
Winthrop University will credit your account for the amount of your loan.
Generally, you will receive the loan in at least two payments during the
academic year.
When do I pay back this
loan?
You
have nine months after you graduate, leave school, or drop below half time
status before you must begin repayment. This is called a grace period. At the
end of your grace period, you must begin repaying your loan. You may be allowed
up to 10 years to repay.
How much will I have to
repay each month?
Your
monthly payment amount will depend on the size of your debt and the length of
your repayment period.
The
chart below shows typical monthly payments and total interest charges for
several different loans.
|
Total Loan Amount |
Number of Payments |
Monthly Payments |
Total Interest Charges |
Total Repayment |
|
$1,000.00
1,500.00
2,500.00
3,000.00
3,500.00
4,000.00
4,500.00
5,000.00
6,000.00
7,000.00
8,000.00
9,000.00
10,000.00
15,000.00 |
27
41
73
91
110
120
120
120
120
120
120
120
120
120 |
$40.00
40.00
40.00
40.00
40.00
42.00
48.00
53.00
64.00
74.00
85.00
96.00
106.00
159.00 |
$58.00
134.00
402.00
605.00
863.00
1,091.00
1,228.00
1,364.00
1,637.00
1,910.00
2,182.00
2,455.00
2,728.00
4,092.00 |
$1,058.00
1,634.00
2,902.00
3,605.00
4,363.00
5,091.00
5,728.00
6,364.00
7,637.00
8,910.00
10,182.00
11,455.00
12,728.00
19,092.00 |
Can I postpone repayment
of my Federal Perkins Loan?
Yes.
Under certain conditions, you can receive a deferment or forbearance on your
loan. During a deferment, you are allowed to temporarily postpone payments on
your loan, and no interest accrues.
Deferments are not automatic. Deferment request forms are available on the
UAS website. You must file your deferment request on time or you will pay a
late charge. For more details on deferments, contact the Perkins Loan Office.
If you
are temporarily unable to meet your repayment schedule but are not eligible for
a deferment, you can receive forbearance for a limited period. During
forbearance, your payments are postponed or reduced. Interest continues to
accrue and you are responsible for it.
Forbearance is not automatic either. You may be granted forbearance in up
to 12-month intervals for up to three years. You must complete a Financial
Arrangement Form, which is available on the UAS website. You will have to provide documentation to support your
request for forbearance. You must continue making scheduled payments until you
are notified that deferment or forbearance has been granted.
FOR ADDITIONAL ELIGIBILITY REQUIREMENTS, click on the highlighted phrase.
| Cancellation Criteria |
Federal Perkins National Direct Made on or after 07/23/92 |
Federal Perkins Made Prior to 07/23/92 |
National Direct Made Prior to 07/23/92 |
National Defense |
| 1. Total and permanent
disability or death of borrower |
100%
|
100%
|
100%
|
100%
|
| 2. Full-time employment in a
Head Start Program |
100%
(15% per year)
|
100%
(15% per year)
|
100%
(15% per year)
|
N/A
|
| 3. Full-time
law enforcement or correction officer |
100%
(over 5 years)
|
100%
(over 5 years)
|
100%
(over 5 years)
|
N/A
|
| 4. Full-time teacher in a
low income
school eligible for funding under Chapter 1 of the Education Consolidation and Improvement Act of 1981 |
100%
(over 5 years)
|
100%
(over 5 years)
|
100%
(over 5 years)
|
100%
(15% per year)
|
| 5. Full-time
special education teacher, including teacher of infants, toddlers, children or youth with disabilities. |
100%
(over 5 years)
|
100%*
(over 5 years)
|
100%*
(over 5 years)
|
100%*
(over 5 years)
|
| 6. Provider of
early intervention service in a public or non-profit program under public supervision. |
100%
(over 5 years)
|
100%*
(over 5 years)
|
100%*
(over 5 years)
|
100%*
(over 5 years)
|
| 7. Full-time teacher of
handicapped students in a public or non-profit elementary or secondary school |
N/A
|
100%
(over 5 years)
|
100%
(over 5 years)
|
100%
(over 5 years)
|
| 8. Full-time teacher of mathematics, science, foreign languages, bilingual education, or any field of expertise determined by the state education agency to have a
shortage of qualified teachers. |
100%
(over 5 years)
|
100%*
(over 5 years)
|
100%*
(over 5 years)
|
100%*
(over 5 years)
|
| 9. Provider or supervisor of the provision of services to
high risk children from low-income communities and their families. |
100%
(over 5 years)
|
100%*
(over 5 years)
|
100%*
(over 5 years)
|
100%*
(over 5 years)
|
| 10. Nurse or
medical technician providing health care services |
100%
(over 5 years)
|
100%*
(over 5 years)
|
100%*
(over 5 years)
|
100%*
(over 5 years)
|
| 11.
Peace Corps or ACTION programs volunteer |
70%
(over 4 years)
|
70%
(over 4 years)
|
70%
(over 4 years)
|
70%
(over 4 years)
|
| 12.
Military Service in U.S. Armed Forces serving under hazardous duty pay. |
50%
(12.5% per year of qualifying service)
|
50%
(12.5% per year of qualifying service)
|
50%
(12.5% per year of qualifying service)
|
50%
(12.5% per year of consecutive service)
|
| 13. Full-time
teaching in a public or non-profit elementary or secondary school, an institution of higher education, or an overseas Department of Defense elementary or secondary school |
N/A
|
N/A
|
N/A
|
50%
(10% per year)
|
| 14.
Bankruptcy |
In some cases |
In some cases |
In some cases |
In some cases |
Should I consolidate?
Consider these factors when deciding if consolidation is right for you.
·
Do you
qualify for any cancellations of my Perkins Loan?
If the
answer to this question is “yes”, do not consolidate! After consolidation, you
lose the opportunity to cancel your Perkins Loan.
·
What are
the interest rates on your loan?
If a consolidation loan offers you a lower rate than your current loans, you may
want to consolidate.
·
Are your
monthly payments manageable?
If you have trouble meeting your monthly payments, have exhausted your deferment
and forbearance options, and/or want to avoid default, consolidation may help
you.
·
How much
are you willing to pay over the long term?
Like a
home mortgage or a car loan, extending the years of repayment increases the
total amount you have to repay.
·
How many payments do you have left on your loan? If you
are close to paying off your students loans, it may not be worth the effort to
consolidate or extend your payments.
Other Helpful Links
Billing Service:
http://www.uaservice.com/
Financial Aid:
www.winthrop.edu/finaid
Controller’s Office:
http://www.winthrop.edu/finance/controllersoffice/
Federal Loan Balance*:
www.nslds.ed.gov
*requires a PIN. Use your FAFSA PIN or apply at the following:
http://www.pin.ed.gov
To
order copies of your credit bureau reports:
www.experian.com
www.transunion.com/index.jsp
www.equifax.com
