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.

How do I request Perkins loan funds?

When you complete the FAFSA, simply indicate that you would like to be considered for loans on the appropriate question.  The school will consider your request when reviewing your file.

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. If a change is made to a student's award letter, the student will receive an email from UMFK, asking them to go to MaineStreet to view the change(s). 

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 be indicated on the student's award letter.

The Perkins loan has been offered to me on my Award Letter, what do I do now?

If you have been offered a Perkins loan as part of your financial aid package on your award letter, and you want to either borrow/decline the money that you have been offered, you must indicate so on MaineStreet.

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.

If you want to borrow the Perkins loan money, you will need to accept the loan on-line on MaineStreet and you will need to complete the Perkins Master Promissory Note (MPN).  (Do not confuse this note with your Stafford MPN!)   The MPN must be complete before funds can be applied to your student account.   Instructions for completing this process are available here.

About the Perkins Master Promissory Note (MPN)

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.

Note: This year several Perkins information documents (i.e., the Perkins Loan Disclosure Information and the Perkins Loan Recipient Information Sheet) are combined under one MPN cover.

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 after the completion of the MPN.  No funds will be disbursed to a student's account, in the business office, until the Perkins MPN process in completed.

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 Master Promissory Note is completed, 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 MaineStreet.  Under the Student Service Center, under the Finace section, view the bill to determine if the Perkins loan appears as a payment.

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 for details.

What I need to know about paying back my loan.
Perkins Loan requires 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, the University of Maine Loan Processing Center, or Campus Partners.   (Contact information available below.)

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 student 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 from the UMFK campus Web site or 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.

About Perkins Loan In-School Deferment:

In-school deferments are available for those who return to at least half-time study at an eligible institution. Other deferments are also available.

- refer to the information and links at the end of the section.

About Perkins Loan Repayment:

Contact the Loan Processing Center or Campus Partners for more information.

- refer to the information at the end of this section

About Perkins Loan Consolidation:

- refer to information and links at the end of this section

About Perkins Loan Cancellation:

- refer to information and links at the end of this section

     

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:

  • Federal 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
  • Federal 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?

updated 6/10/09