FEDERAL PERKINS LOAN- PROGRAM ALERT-(March 2015)
We wish to be forthcoming that this long standing federal loan program is being phased out of existence. The following information describes only what we know about the program at this time.We will provide updates as information becomes available.
FIRST TIME BORROWERS- Academic Year 2015-16: Students with an award offer that includes an opportunity to borrow a Federal Perkins Loan for the first time must respond to specific and timely requirements to obtain this loan for the 2015-16 academic year.
The loan must be disbursed (funds released to your billing account) before October 1, 2015. Before the college can release funds, the borrower must review the terms of the loan and sign a promissory note. The signing of the note is done via an electronic signature and the whole process of disclosure and signing takes place on our Perkins servicing agency website. Our servicer is a company that goes by “Heartland Campus Solutions/ECSI”. You will receive details on how and when to enter the Heartland website and E-sign yourPerkins promissorynoteby June 1st. If the student borrower fails to sign the Perkins promissory note by September 30th, the opportunity to borrow from this program is forfeited. There are no exceptions.
Unless congressional action is taken, the Perkins Loan program will be phased out and funding will only remain for students who borrowed in the program prior to June 30, 2015. This means that if you are entering college for the first time in 2015-16, you are not eligible to receive a Perkins Loan beyond this year. Although there are no final details as yet, indications are that annual loan limits will be raised for federal Unsubsidized Stafford Loans. Although this program will provide a resource, the loan terms are not comparable to the Perkins program. Most notably is the fact that the interest is not subsidized for the student while they are in school and thereby increasing the cost of borrowing.
CURRENTLYENROLLED & PREVIOUS PERKINS LOAN BORROWING STUDENTS-Students who are presently enrolled and who received a Perkins Loan for award years 2014-15 and prior may still be able to receive Perkins for the remainder of the years needed for them to complete their first degree. Specific terms and conditions are yet to be finalized.