Perkins Loans FAQ's

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 in 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.

• 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.

• 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.

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.

Winthrop University will credit your student account for the amount of your loan. Generally, you will receive the loan in at least two payments during the academic year.

The Perkins loan program is no longer available as of September 30, 2017.

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.

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.

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 Debbie Siniard in Student Financial Services.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.

Consider these factors when deciding if consolidation is right for you.

• Do you qualify for any cancellations of your 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.