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 — Beginning Award Year 2008 - 2009
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.