Federal Perkins Loan
The Federal Perkins Loan, formerly known as National Direct Student Loan, was a low interest, 5%, loan for undergraduate and graduate students with financial need. Drew University is considered the lender, and the loan was made with government funds with a share contributed by Drew University.
THIS LOAN PROGRAM IS NO LONGER ACCEPTING NEW APPLICATIONS
As required by the Federal Perkins Loan Program Extension Act of 2015 (the Extension Act), enacted on December 18, 2015, institutions must make the following disclosures available to Perkins Loan borrowers.
The Perkins Loan program has been extended through September 30, 2017. In addition to disclosures required under 34 CFR 674.16, under the Extension Act, a school must provide the following disclosures to each Perkins Loan borrower before it makes a first disbursement of a Perkins Loan.
The disclosures are as follows:
Please note that we are required to award a Federal Direct Loan (subsidized/unsubsidized) as part of your Perkins Loan award. You have the right to decline/adjust these Federal Direct Loan amounts as you see fit but these awards may still impact your Perkins Loan amount eligibility.
For additional questions please contact our office at (973) 408.3114.
Grace Period: Repayment of your student loan does not begin until nine (9) months after you have ceased being at least a half-time student (6 credits or less). During this grace period, you are not required to make payment and interest will not accrue on your loan.
Deferments: You may apply for a deferment for the following reasons:
Cancellations: You may be eligible for cancellation benefits. Borrowers must make a properly documented written request. For each completed year of service, a portion of the loan will be canceled at the following rates: 15% of the original principal loan amount for each of the first and second years; 20% of the original principal loan amount for each of the third and fourth years; and 30% of the original principal loan amount for the fifth year. The qualifying services for cancellation are:
Head Start Cancellation: Upon making a properly documented written request to the School, you may be entitled to have up to 100% of the original principal loan amount canceled for qualifying service performed after you receive the loan as: a full time staff member in the educational component of a Head Start program which is operated for a period comparable to a full school year and which pays a salary comparable to an employee of a local educational agency, you may qualify for a Head Start cancellation. For each completed year of service under the Head Start Cancellation provision, the loan will be canceled at the rate of 15% of the original loan amount.
Military Service Cancellation: A school must cancel up to 100% of the outstanding balance of a Perkins loan for a full year of active duty service in the U.S. armed forces in an area of hostilities or an area of imminent danger that qualifies for special pay. The “U.S. armed forces” are the United States Army, Navy, Air Force, Marine Corps, or Coast Guard.
The borrower’s commanding officer must certify the borrower’s service dates. Active duty service for less than a complete year or a fraction of a year beyond a complete year does not qualify. A complete year of service is 12 consecutive months.
Areas that qualify for hostile fire/imminent danger pay are listed on the Web. Note that the borrower does not have to serve the full 12 months of active duty service in such an area to qualify for the cancellation. If a borrower is on active duty in such an area for any part of a month, that month counts towards the borrower’s eligibility for a military cancellation.
The cancellation rate is the standard progression for up to 100% cancellation: 15% for the first and second year of qualifying service, 20% for the third and fourth year of qualifying service, and 30% for the fifth year of qualifying service.
Volunteer Service Cancellation: Upon making a properly documented written request to the School, you may be entitled to have up to 70% of the original principal loan amount of the loan canceled for qualifying service performed after you receive the loan as: a volunteer under the Peace Corps Act; a volunteer under the Domestic Volunteer Service Act of 1973 (ACTION programs). For each completed year of service under the Volunteer Service Cancellation provision, a portion of the loan will be canceled at the following rates: 15% of the original principal loan amount for each of the first and second 12 month periods of service; and 20% of the original principal loan amount for each of the third and fourth 12 month periods of service.
Discharges: Your obligation to repay this loan may be partially or totally discharged for the following reasons:
Student Loan Ombudsman: If you dispute the terms of your Federal Perkins Loan in writing to your school, and your school and you are unable to resolve the dispute, you may seek the assistance of the Department of Education’s Student Loan Ombudsman. The Student Loan Ombudsman will review and attempt to informally resolve the dispute.
If you have to remit payments to several lenders, you may want to consider consolidating your Perkins Loan with your other Federal loans. Consolidation may let you pay graduated payments, or income-sensitive payments, depending on the amount of your total debt. You may also be able to stretch your repayments beyond ten years. Consolidation may increase your interest rate.
As of July 1, 2010, all federal student loan consolidations are now processed by the U.S. government through the Federal Direct Loan Program (FDLP). Visit the Federal Direct Loan Consolidation Information Center to get more details and apply for a consolidation loan.
If your Federal Perkins Loan is in past due or in default the following actions will be taken:
Students who are first time borrowers for the Federal Perkins Loan at Drew University are required by federal regulation to complete an Entrance Counseling session. The session shows you how to manage your student loans, both during and after college. The Entrance Interview must be done at the Mapping Your Future web site. Click the link below (it will open in a new window).
At the mapping-your-future web site follow the instructions below to begin your federal perkins loan entrance interview.
Once you have completed the Entrance Interview, please print the confirmation page for your records. The Student Accounts Office will receive confirmation from the web site that you have successfully completed your Entrance Interview.
If you have any problems/questions with the Entrance Interview, please contact the Perkins Loan representative at (973) 408-3114 or email@example.com.
Before you graduate, drop below half-time attendance (6 credits or less), or withdraw (regardless if you plan on transferring/attending another school) you are required by federal regulations to complete an Exit Interview. The Exit Interview shows you how to manage your student loans after college. The interview must be completed at the Mapping Your Future web site. Click on the link below (page will open in a new window):
At the Mapping Your Future web site, follow the instructions below to begin your Federal Perkins Loan Exit Interview.
Once you have completed the Exit Interview, please print the confirmation page for your records. The Student Accounts Office will receive confirmation from the web site that you have successfully completed your Exit Interview. Then, the Student Accounts Office will mail, to the permanent address listed in the Exit Interview, a repayment schedule, truth-in-lending statement, copies of your promissory notes and information on your rights and responsibilities. You must return one copy signed of the repayment schedule and the truth-in-lending statement and a signed copy of your Rights and Responsibilities upon receipt of the information.
If you have any problems/questions with the Exit Interview, please contact the Perkins Loan representative at (973) 408-3114 or firstname.lastname@example.org.
The following contacts are available for any questions, concerns, or problems that you may have regarding the Federal Perkins Loan.
University Accounting Sevrice, LLC
PO Box 5879
Carol Stream, IL 60197-5879
Ph: (844) 870-8701
Mail Forms & Coorespondence:
University Accounting Service, LLC
PO Box 5879
Carol Stream, IL 60197-5879
Ph: (844) 870-8701
Please let Drew University know if we can assist in the process of repaying your Federal Perkins Loan.
Drew Campus Contact:
Perkins Loan Program
36 Madison Avenue
Madison, NJ 07940
When borrowing through the Federal Perkins Loan program, you must sign a Master Promissory Note (MPN) agreeing to pay back the loan, with interest, according to the terms of the program.
You will be sent an email notification after you arrive at Drew with instructions.
Your MPN will be attached to the notification email. Please print out, complete and sign it and deliver it to the Student Accounts Office as soon as possible. If you are a returning borrower, you will sign your TIL statement in the office as well.
Your Truth-in Lending (TIL) Statement will be ready for you to sign once you have received the email to visit the Students Account Office to deliver your MPN. This form details the amount borrowed for the current academic year, cumulative amounts borrowed and annual percentage rate for the loan.
Once the MPN is completed and returned and the TIL Statement has been signed, the loan may be disbursed to the borrower’s account.
If you have any questions during this process please contact the Perkins Loan Representative at email@example.com.
Billing cycles are set up on a quarterly basis. Minimum amount due is $120.00 quarterly if you have received your first loan after 10/1/92. Those who have borrowed more than $2,800.00 will find their quarterly payments increase with the size of their loan in order to repay the loan within the 10 year maximum time limit allowed under federal law.
Borrowers are reminded they are still responsible for payments due even if bills are not received. If you have billing questions or did not receive a bill, please contact UAS. You must update your address with UAS to ensure timely receipt of bills.
It might also be helpful to create an online account so that you have the most up-to-date information available regarding your account. This can be done at www.uasconnect.com.
Payments are due on the first of the month. If a payment is not received within 15 days of the due date, an overdue notice will be sent and late fees assessed.
Please click our Important Contacts page for information regarding mailing payments or correspondence. All checks should be made payable to “Drew University NDSL” and your account number(s) noted on the check.