Student Loan Office
The student loan office provides entrance and exit counseling to borrowers of all federal student loan programs (William D. Ford Federal Direct, Perkins, Health Professions, and Nursing). The office also collects payments and provides customer service for Perkins, Health Professions, Nursing, and Institutional Loan Programs.
You may consolidate online with the Direct Consolidation Program at www.loanconsolidation.ed.gov. For more information please contact the U.S. Department of Education Consolidation Department at 1-800-557-7392.
If you have a Perkins loan, please consider the cancellation benefits before you consolidate the Perkins with your Direct Student Loans or you will lose your benefits. If you have outside lenders other than Direct Student Loans, you can not consolidate with the Direct Consolidation Program.
If you consolidate with the Direct Consolidation Program and make the first 12 payments on time, you will keep the 1.5% rebate you received at the point your Direct Loans were disbursed. If you have your payments taken out of your account electronically, you will receive an additional .25% interest rate discount.
William D. Ford Federal Direct Loans
(859) 257-3406 Ext. 260 (A-K)
(859) 257-3406 Ext. 259 (L-Z)
E-mail: directloans@lsv.uky.edu
Federal Perkins and Other Loans
(859) 257-3406 Ext. 258
E-mail: studentloans@lsv.uky.edu
Federal Direct Loans
The Direct Loan interest rate is variable and is adjusted yearly on July 1. The rate will never exceed 8.25 percent for student loans and 9 percent for parent loans. There are three types of Direct Loans for students:
- Subsidized - interest does not accrue while in school.
- Unsubsidized - interest accrues while in school.
- Parent (PLUS) Loan - interest accrues beginning the day of disbursement of the loan.
Please contact the Direct Loan Servicing Center by calling 1-800-848-0979 or download the deferment or forbearance application from www.dlssonline.com.
Entrance Counseling
Exit Counseling
Federal Direct Loans Master Promissory Note. A PIN is required; if you do not have your PIN, please visit: www.pin.ed.gov.
Borrower Responsibilities
Please contact the Direct Loan Servicing Center at 1-800-848-0979 if any of the following take place:
- Change of address
- Change of name
- Reduction of enrollment status to less than half-time
- Change in expected graduation date
- Withdrawal from school
Perkins Loans
The interest rate on a Perkins Loan is a fixed rate of 5% for the entire loan period. As long as the borrower is a student and enrolled at least half time status, interest will not accrue on the loan. Once enrollment drops below half time status, a grace period of nine months begins. During this time, payments are not required and interest does not accrue.
Perkins Loan borrowers are entitled to the following rights:
- Deferment - allows temporary postponement of payments on the loan. The borrower must request a deferment in writing. Deferments that are available:
- Student deferments - are available to borrowers who are enrolled at least half time status and provide verification of enrollment to the Student Loan Office. A student deferment will be placed on the account and payments will not be due at this time.
- Unemployment deferments - are available if the borrower is working less than 30 hours a week and actively seeking full time employment.
- Economic hardship deferments - certain criteria must be met in order to qualify for this type of deferment. Please contact the Student Loan Office to determine eligibility.
- Forbearance - Forbearance is available to assist borrowers who do not qualify for a deferment. Forbearance grants relief from making regularly scheduled payments, but interest will still accumulate during a period of forbearance and must be paid at the end of the forbearance period.
The forms necessary to apply for deferment or forbearance are available by calling the Student Loan Office (859) 257-3406 ext 258 or through the Campus Partners web site, www.mycampusloan.com.
Entrance Counseling
The Federal Perkins Loan requires entrance counseling and acknowledgment of disclosure of total loan indebtedness each year you are awarded this type of loan. In addition, first-time borrowers are required to complete a Master Promissory Note (MPN). These steps must be performed electronically at http://ipromise.campuspartners.com. Electronic signature of the Master Promissory Note requires the pin number assigned to you by the federal government when you completed the FAFSA. The loan will not be released until all requirements have been satisfied.
Exit Counseling
Cancellation
Depending on the occupation, the borrower may qualify to have partial or total cancellation of the loan.
Some of the occupations include:
- Full time teaching in special education, low income schools, head start programs, or teaching in areas of shortage such as math, science, foreign language or bilingual education.
- Law enforcement or corrections officer
- Nurse or medical technician or Allied health professional who assists, facilitates, or completes the work of a physician or other specialists
- Work for a child family service agency and provide services for low income or at-risk children.
- Provide early intervention services to children from 0-2 years of age.
The borrower could qualify for up to 100% cancellation of the loan over a period of time for any of the above occupations.
Partial cancellation may be available:
- Peace Corps
- Full time in the military for a period of at least one year in an area of hostility.
The forms necessary to apply for deferment in anticipation of cancellation are available by calling the Student Loan Office at (859) 257-3406 ext 258 or through the Campus Partners web site, www.mycampusloan.com.
The forms vary for each type of cancellation and may be confusing. It is recommended that the borrower call the Student Loan Office to make sure the correct forms are being used. Call (859) 257-3406 ext 258, or email at studentloans@lsv.uky.edu.
Health Profession Student Loans
A Health Profession Student Loan is a low-interest loan available for students in medicine, dentistry, or pharmacy. The interest rate on the Health Professions Loan is a fixed rate of 5% for the entire loan period. Interest does not accrue on the loan as long as the borrower is a student and enrolled full time status. Once enrollment drops below full time a grace period of one year begins. During this time, payments are not required and interest does not accrue. For questions concerning Health Professions Student Loans please contact the Student Loan Office (859) 257-3406 ext. 258 or e-mail at studentloans@lsv.uky.edu. Information is also available at http://bhpr.hrsa.gov/dsa.
Health Professions borrowers are entitled to the following rights:
- Deferment – allows temporary postponement of payments on the loan. The borrower must request a deferment in writing. Deferments that are available:
- Student deferments - are available to borrowers who are enrolled full time status in a health professions school and provide verification of enrollment to our office. A student deferment will be placed on the account and payments will not be due at this time.
- Military Deferment
- Internship or Residency Deferment
- Advanced Professional Training
- Peace Corps Deferment
- Temporary Disability Deferment
- Hardship - A period of hardship is available to assist borrowers that do not qualify for deferments. A hardship grants relief from making regularly scheduled payments but interest will accumulate during a period of hardship and must be paid before additional hardship is granted. The original repayment terms (10 years) will not be extended for periods during which hardship is granted, so it may be necessary to reschedule payments following the period of hardship so that the loan can still be repaid within the 10 year maximum repayment period.
The forms necessary to apply for deferment or hardship are available by calling the Student Loan Office (859) 257-3406 ext 258, or email studentloans@lsv.uky.edu or through the Campus Partners web site www.mycampusloan.com.
Entrance Counseling – Beginning Award Year 2008 - 2009
A Health Professions Loan requires completion of entrance counseling and acknowledgment of disclosure of total loan indebtedness each year you are awarded this type of loan. First time borrowers are required to complete a Master Promissory Note (MPN). These steps must be performed electronically at http://ipromise.campuspartners.com. Electronic signature of the Master Promissory Note requires the pin number assigned to you by the federal government when you completed the FAFSA. The loan will not be released until all requirements have been satisfied.
Exit Counseling
Institutional Loans
Institutional Loans are long-term loans granted by the various departments on campus, for example, College of Medicine, College of Dentistry, College of Social Work, etc. The University of Kentucky awards these loans to help undergraduate and graduate students pay for educational costs. To determine eligibility, please visit www.uky.edu/financialaid or call the Financial Aid Office at (859) 257-3172.
After the student graduates, leaves school, or drops below half-time enrollment, there is a six-month grace period before repayment begins. The borrower selects the option that is right for his/her financial circumstances. They may select from 4 repayment plans:
- Standard - fixed monthly payment (at least $50) for up to 10 years.
- Extended - fixed monthly payment (at least $50) for 12-30 years.
- Graduated - allows payments to increase every 2 years, for 12-30 years.
- Income Contingent - monthly payments based on yearly income, family size and loan amount.
Direct Parent Plus Loan
Direct Parent Plus Loan borrowers must begin repaying their loans shortly after the loan has been fully disbursed. The Parent Plus Loan borrowers may choose only the Standard, Extended, or Graduated Repayment Plan.
Consequences of Default
- Damage to credit rating
- Loss of deferment/forbearance options
- Federal government may take legal action
- Federal Government can withhold federal tax refunds
- Garnishment of wages
- Unpaid balance and accrued interest could be due in full immediately
- Account may be placed with a collection agency, increasing the total debt by late fees, additional interest, court costs, collection fees, attorneys’ fees and other costs
PLEASE do not let this happen. Borrowers who have trouble making payments should call the Direct Loan Servicing Center at 1-800-848-0979. The Direct Loan Servicing Center will look at all options to keep the account out of default.
Once the grace period ends (nine months for Perkins and Nursing, twelve months for Health Professions), borrowers will start receiving bills for repayment of student loans. The bills will come from the University’s billing service, Campus Partners. Depending on the amount borrowed, minimum monthly payments will be calculated to ensure the loan is repaid within a ten-year maximum repayment period. There is not a penalty when paying the loan off early. Please remember that the University of Kentucky is the lender of the loan and will remain so for the entire repayment period. If assistance is ever needed, please call the Student Loan Office at (859) 257-3406 ext 258 or Campus Partners at 1-800-334-8609.
Consequences of Default
It is very important that borrowers remain current and in good standing on their Perkins, Health Profession, and Nursing Loans. Failure to do so will result in a stop on official transcripts and future registration at the University of Kentucky. Late fees will also be assessed any time the account becomes as little as 30 days past due. Failure to keep the account current will result in negative credit reporting which is sent to all 3 national credit bureaus. Once negative credit reporting has been sent, it remains part of the borrower’s record for 7 years and cannot be removed. Accounts that become 240 days past due are subject to acceleration of the balance and placement with outside collection agencies, which will add considerable collection fees to what is already owed. When outside collection agencies are unsuccessful, the accounts are turned over to the Federal Government for collection. Even bankruptcy cannot prevent borrowers from being held liable for repayment of this loan.
To remain in good standing, KEEP ADDRESSES UP TO DATE. Borrowers will be assured of always receiving bills on time. If a bill is received that cannot be paid, please contact the Student Loan Office for help (859) 257-3406 ext 258.
Once the grace period ends, bills will be sent for repayment of the Institutional Loan. These bills are generated by Campus Partners, the University’s billing service. Please remember that the University of Kentucky is the holder of the loan and will remain the holder for the entire repayment period. If assistance is ever needed with the account, please call the Student Loan Office (859) 257-3406 ext 258 or Campus Partners 1-800-334-8609.
Loan Consolidation
Borrowers have the option of consolidating any or all of the federally funded student loans that have been awarded. Loan programs eligible for consolidation include Perkins, FFEL(Stafford), Health Profession, Nursing, Parent Plus Loans, and the William D. Ford Federal Direct Loan. Loan consolidation combines one or more student loans into a single new loan with one lender and one monthly payment. Perkins borrowers who qualify for cancellation benefits should avoid consolidation of their Perkins Loans. Consolidation may not be the right choice for every borrower. It is recommended to research different consolidation companies and benefits. Please contact the Student Loan Office with any questions at (859) 257-3406 (A-K) ext. 260 or (L-Z) ext. 259. To apply for consolidation call 1-800-557-7392 or visit www.loanconsolidation.ed.gov.
Address Change
It is important to keep Student Loans addresses up to date at all times. Without a current address borrowers will not receive bills or notices on time. Borrowers are expected to make payments or submit completed forms on time, whether or not a bill is received.
For Direct Loans in repayment, please contact the Direct Loan Servicing Center at 1-800-848-8979 or www.dlssonline.com.
For Direct Loans not in repayment, please stop by the Student Loan Office in Room 18 Funkhouser Building, or call the Student Loan Office (859)-257-3406 (A-K) ext. 260 or (L-Z) ext. 259 or email directloans@lsv.uky.edu.
For Perkins, Health Profession, Nursing, and Institutional Loans borrowers may make address changes by contacting:
- University of Kentucky Student Loan Office, 18 Funkhouser, Lexington, KY 40506-0054, or call (859) 257-3406, ext 258, or email studentloans@lsv.uky.edu.
- Campus Partners, P O Box 2901, Winston-Salem, NC 27102, or call (800) 334-8609, or log in at www.mycampusloan.com.
U.S. Department of Education Ombudsman
Borrowers need to state the terms of the dispute in writing to the Student Loan Office. If the Loan Office is unable to resolve the dispute, borrowers may seek assistance from the Department of Education’s Student Loan Ombudsman. The Ombudsman may be contacted at (877) 557-2575 toll free or on-line at www.ombudsman.ed.gov.