Rights & Responsibilities

Your Rights and Responsibilities as a Federal Perkins Loan Borrower

A Federal Perkins loan is a serious legal obligation. Therefore, it is extremely important that you understand your rights and responsibilities and you agree to honor them. You must respond promptly to any communications you receive regarding your Federal Perkins loan until it is paid in full. Report any of the following changes immediately by e-mailing the information to

  • your name changes
  • you transfer to another school
  • your address changes
  • you withdraw from school
  • your parent's address changes
  • you join the military service
  • you drop below full-time student status
  • you join the Peace Corps
  • you enter into a teaching contact
  • you become disabled

At the time you leave school, or just prior to it, you are entitled to an exit interview. During this interview, your repayment schedule is executed and made a part of your promissory note. Your first payment is due 9 months from the date you leave school or drop below half-time status, whichever comes first. As payments become due, interest accrues on your unpaid balance at an Annual Percentage Rate of 5%. Payments are based upon the total amount borrowed and are subject to a minimum of $40.00 for monthly payers or $120.00 for quarterly payers.

If at any time you are unable to make a scheduled payment on time, you should contact the school by phone or in writing immediately. You always have the right to prepay all or any portion of your indebtedness without a penalty.

Your promissory note allows for deferment of your repayments and cancellation of all or part of your loan under certain circumstances. We approve these benefits upon receipt of an application form from you. We'll send you an application upon your request. We'll process it promptly upon receipt. We'll then send you an approval or disapproval with an explanation for our action, along with the due date of your next payment or application form. Do not allow payments to become past due because you think you are entitled to deferment or cancellation.

Your loan is one of the first opportunities to establish good credit. According to federal law we've notified a national credit bureau of this debt, and your co-maker's also, if applicable. We send updates to the credit bureau for the life of your loan. A favorable rating on this loan will put you in good standing when you need credit elsewhere. A bad rating will affect both you and your co-maker. Credit bureau ratings and loan administration are extra work and expense for us. But it's work we're glad to do to help you establish good credit.

We hope you agree that this loan is a serious business transaction that deserves to be treated in a professional manner by both of us.