Perkins Loan

What is a Perkins loan?
The Perkins Loan is a federally funded low interest loan for undergraduate and graduates attending school on at least a half-time basis. The school is the lender. Eligibility is based on need.

What is the first step to the application Procedure for a Perkins loan?
To be considered for this type of assistance, a student must: complete the Free Application for Federal Student Aid (FAFSA), list UMFK's school code (002041) in the appropriate section and submit the FAFSA to a central processor for review. A FAFSA can be completed online at: www.fafsa.ed.gov or if you prefer completing a paper application, a FAFSA can be requested from a college or a university's student aid office, or from a high school guidance counselor's office.

What is the interest rate on a Perkins loan?
The Federal Perkins loan has an annual interest of 5 percent. Interest does not begin to accrue until 9 months after you graduate, leave school or drop below half-time status. You must begin repaying your loan to your school at the end of your 9 month grace period. Minimum payments of $40 per month are required; the repayment period may be extended up to ten years.

Other than interest, is there a charge to get a Perkins loan?
No, there are no fees or charges.

How will I be notified of my eligibility?
A student is usually notified of his/her Perkins loan eligibility through the student's award letter. Initial award letters are mailed to the student; updated award letters are available on Bengal Tracker (DSIS).

Note: Your 9 digit identification number for Bengal Tracker (DSIS) is your social security number and your 6 digit pin number is your birth date. If your birthday is on March 1, 1974, your pin number will be entered as 030174 (MMDDYY).

How much can I borrow?
Undergraduates are limited to borrowing $4,000 for each year of undergraduate study with a maximum of $8,000 for an associates degree and $20,000 for a bachelor's degree. The actual amount of a Perkins Loan will depend on the extent of the students financial need and funds available for loans. The student's borrowing limit will will be indicated on the student's award letter.

How do I request Perkins loan funds and what are the application requirements?
If you have been offered a Perkins loan as part of your financial aid package on your award letter, and you want to borrow the money that you have been offered, you must complete the following steps.

Step 1. Inform the financial aid office that you want to borrow the offered loan money. You will do this by accepting your Perkins loan in one of the following ways.

  • Place a check mark in front of the Perkins award on the paper copy of your award letter sent to you, and return the award letter to the financial aid office.
  • Or accept your Perkins loan on-line by going to Bengal Tracker (DSIS).

Step 2. You will need to go to the Bengal Tracker (DSIS) to complete the following forms:

  1. the Perkins Loan Disclosure
    • The Disclosure provides you with the total amount of Perkins Loan Funds you have borrowed from the University of Maine at Fort Kent as well as your rights and responsibilities as a borrower.
    • The Disclosure process must be completed for each academic year in which you are awarded a Perkins Loan.
    • At the end of the Disclosure, you will be asked to acknowledge and accept your rights and responsibilities. This must be done before you can continue to the Loan Recipient Information Sheet.
    • A new disclosure is required for each year the student receives Perkins funding.
  2. the Loan Recipient Information Sheet
    • After completing the Disclosure acknowledgement, you will automatically be directed to the Loan Recipient Information Sheet.
    • You will be asked to provide reference information (address and telephone) for your parents or guardians and four additional references.
    • If you are unable to complete this section, please contact the loan office at 207-834-7515, or email at: lisafour@maine.edu
    • A new information sheet is required for each year the student receives Perkins funding.

Step 3. Once your award is accepted by you, the financial aid office will mail your Perkins Master Promissory Note (MPN) to you.

  • The MPN will be mailed to you at the permanent address you have provided to the Registrar's Office.
  • Perkins MPNs for Perkins funding beginning with the fall semester, will be mailed to the student's home address during the first week of August. MPNs for Perkins Loans awarded after the first week of August will be mailed approximately one week or two weeks after the Perkins Loan is awarded and accepted by the student on Bengal Tracker (DSIS). Or the student may be notified by the financial aid office of the time and place to get the note from the financial aid office.
  • The Perkins Promissory Note (MPN) must be completed in full, signed and returned to the UMFK Financial Aid Office.
  • Once a MPN is completed by you, you need not complete another in the future
  • A Perkins MPN and Stafford MPN are not the same
  • A generic copy of the Perkins MPN is available by clicking on the "Perkins MPN" link on the Bengal Tracker (DSIS).
  • Your loan funds/check will not be applied to your student account until UMFK has received your completed Perkins - Master Promissory Note.

NOTE: When you sign a promissory note and receive loan funds, you are agreeing to repay the loan according to the terms of the note. Except in cases where the loan is discharged (for instance in the death of a student) the loan must be repaid with interest, even if the student does not complete the program, does not like the program, or is unable to procure employment after completing the program.

Step 4. If the student meets all other eligibility requirements (to be determined by the financial aid office), the financial aid office will disburse your loan money to the business office. This process usually takes one week or less. No funds will be disbursed to your student account in the business office until both the paper MPN is received by the financial aid office and you have completed the Disclosure and Loan Recipient Information Sheet on the Bengal Tracker (DSIS).

If you wish to cancel an offered Perkins loan, simply do not accept it on your award letter or on the Bengal Tracker (DSIS). If you want to reduce an offered loan, please contact the Financial Aid Office by calling (207) 834-7605, emailing us at umfkaid@maine.edu , or by visiting the financial aid office in Cyr Hall. Reduction or cancellation of a Perkins loan will not jeopardize other financial aid.

How and when do I get my Perkins loan money?
Perkins Loan funds are usually credited to a student's University account in two equal disbursements, half of the total amount each semester. Funds are credited to the student's account only when: the student's financial aid file is complete, the Perkins Loan Entrance Interview is complete, the Perkins Master Promissory Note is complete, and the student is registered.

Once the loan is applied to a student's account, the student will receive a refund for any semester amount which exceeds indebtedness to the University.

How will I know if my loan funds have been applied to my student account/bill?
To check if your Perkins Loan funds have been received and applied to your UMFK student billing account, go to Bengal Tracker (DSIS). login and select Student Billing. Go to the payment section. If "Perkins Loan" is listed with a minus sign under "Payments" the amount shown has been deducted from your bill. Review the amounts for accuracy. If your UMFK bill is paid in full and any balance remains, that balance will be refunded to you. Contact the UMFK Business Office at 207-834-7552.

Note: You will need to know the following information to enter the Bengal Tracker (DSIS):
your 9 digit identification number. This is your social security number. your 6 digit pin number. This is your birthday date. If your birthday is on March 1, 1974, your pin number will be entered as 030174 (MMDDYY).

What I need to know about paying back my loan.
Perkins Loans require repayment. After a student graduates, leaves school or drops below half-time, a student has a nine month grace period before beginning repayment. The interest does not need to be paid during the grace period. Payment is made to the school.

A borrower will be considered in default on his/her loan if he/she fails to meet his/her repayment schedule or fails to file a deferment or cancellation form on time. If in default, official University records can be withheld, the student may not register for courses on any University of Maine System campus, the total loan can be accelerated (become due and payable immediately), and the loan may be sent to a collection agency or to attorneys for litigation. If these actions are necessary, the borrower may incur additional costs and the loan may be sent to the U.S. Department of Education for collection. Income tax refunds due to the borrower can be withheld to repay the loan.

Interest does not accrue and payments may be deferred under the following circumstances: economic hardship, unable to find full-time employment, fellowship/rehabilitation, forbearance, and cancellation services, or returning to college as at least a half-time student after withdrawing, (loan payments may be deferred until he/she graduates or withdraws again). Cancellation of all or part of your loan may be possible under the following conditions: teaching (at low income schools), head start, certain fields of nursing/medical technician or specified military duty, military combat, law enforcement, special education, family services, teacher of math/science/foreign language, specific volunteer programs, total disability, bankruptcy and death.

More information is available in the "Repayment, Consolidation and Deferment" section.

What are my borrower responsibilities after I leave school?
A student who has borrowed from the Perkins loan program during his/her undergraduate career who has either withdrawn from school, left school, dropped to less than 6 credits hours or graduated, is required to complete a Perkins Exit Counseling Session. The session will provide the student with useful information regarding the repayment  process (i.e., deferment, forbearance, consolidation etc.).  A student who has not completed his/her Exit counseling session will have a "Hold" placed on his/her UMFK account.

A "Hold" on a student's account will prevent a student's (official) academic transcript and/or diploma from being released and will prevent a student from registering for classes at UMFK and any other University of Maine campuses.

To release a Perkins/Stafford "Hold" the student will need to complete the appropriate Exit Counseling session. The Perkins Exit can be completed online at www.mycampusloan.com. Make sure to follow instructions carefully and complete all the sections provided.

A Perkins Exit Hold on a student’s account should automatically be removed once the student’s Exit obligations have been met.  However, if a Hold is not removed, for whatever reason, and/or if you have any questions regarding a Perkins Hold, you will need to resolve it with the Loan Processing Center.  The Center can be reached by phone at:1-800-308-6148, Fax at 207-561-3430 or by mail at PO Box 412, Bangor ME  04402.

Who is my Perkins lender and how can I contact them?
The University of Maine at Fort Kent is the lender of your Perkins Loan.  However, the University of Maine (UM) Processing Loan Center is who you will contact for information regarding your loan. The Center is available to assist you with your Perkins questions and with the prepayment process. You may reach the Center at: 1-800-308-6148, Fax at 207-561-3430 or by mail at:  Processing Center, PO Box 412, Bangor ME  04402. In the future you may be receiving correspondence from the Processing Center regarding your loan.

Campus Partners is a billing service for Perkins Loans used by The University of Maine at Fort Kent. Campus Partners will also be working with you with the repayment of your Perkins loan. Campus Partners can be reached at 1-800-334-8609, and you may visit their web site at www.campuspartners.com. Correspondence for Campus Partners can be sent to: Campus Partners, PO Box 2901, Winston-Salem, NC 27102-2901.

Were can I find more information regarding the Repayment of my Perkins Loan?  Loan Consolidation /Deferments and/or Cancellations?

The Processing Center and/or Campus Partners are available to assist you. (Their contact information is available at the end of this loan section.)

More information is also available at: http://studentaid.ed.gov.

Deferment Options
Deferments are available for those who return to at least half-time study at an eligible institution. Other deferments are also available. More information is available at: http://www.ed.gov/

The Federal Student Guide also has valuable information.

OSFA Ombudsman Information
The SFA Ombudsman is working with student loan borrowers to informally resolve loan disputes and problems. They help borrowers having problems with the following federal loans:

  • Direct Loans - Subsidized and Unsubsidized Direct Student Loans, Direct PLUS Loans (for parents), and Direct Consolidation Loans
  • Federal Family Education Loans - Subsidized and Unsubsidized Stafford Loans, FFEL, PLUS Loans (for parents), and FFEL Consolidation Loans
  • Guaranteed Student Loans, SLS Loans
  • Perkins Loans

Ombudsman Contact Information
Customer Service Line: 1-877-557-2575

Web Site: http://ombudsman.ed.gov/

Ombudsman Mailing Address: Office of the Ombudsman Student Financial Assistance U.S. Department of Education Rm. 3012, ROB #3 7th and D Streets, SW Washington, DC 20202-5144

Where can I find more information?