Family Assistance Loan |
Federal Perkins Loan |
Summer Studies Loan
A fixed low interest (5%) loan for both undergraduate and graduate students with exceptional financial need. $4,000 for each year of undergraduate study (the total amount you can borrow as an undergraduate is $20,000). $6,000 for each year of graduate or professional study (the total amount you can borrow as a graduate/professional student is $40,000 including any Federal Perkins Loans you borrowed as an undergraduate). The amount of the Federal Perkins loan is determined by the financial aid office. This is a campus-based loan program, with the school acting as the lender using a limited pool of funds provided by the federal government. There are no origination or default fees.
Qualification Requirements
- Enrollment in an eligible school at least half-time in a degree program
- U.S. citizenship, permanent residency, or eligible non-citizen status
- Satisfactory academic progress
- No unresolved defaults or overpayments owed on Title IV educational loans and grants
- Satisfaction of all Selective Service requirements
To apply for this loan program, you must submit the Free Application for Federal Student Aid (FAFSA).
Entrance Counseling
Before receiving a Perkins loan, borrowers must complete an entrance counseling session. This session provides useful tips and tools to help borrowers develop a budget for managing their educational expenses and helps borrowers to understand their loan responsibilities. The counseling must be conducted in person, by audiovisual presentation, or by interactive electronic means.
The counseling session reviews basic facts about student loans:
- Loan terms and conditions.
- Rights and responsibilities of the borrower.
- Use of the Master Promissory Note (MPN).
- Repayment and consolidation plans.
- Deferment, forbearance, and cancellation options.
- Late payment and default consequences.
- Budgeting money.
- Borrower’s responsibilities while their in school.
- Importance of keeping lender(s) informed.
To complete entrance counseling for the Federal Perkins Loan, please visit www.signmyloan.com.
Exit Counseling
Federal regulations require that institutions offer exit counseling to federal student loan borrowers who are graduating, withdrawing from the university, or dropping below half-time enrollment. Exit counseling covers:
- Borrower's rights and responsibilities
- Loan repayment
- Consequences of default
During exit counseling, borrowers are also required to provide updated personal information, such as address, telephone number, and employment.
Schools must keep documentation that shows that the borrower received the required exit counseling, either electronically, in person or by mail.
If a borrower withdraws from school without the school’s knowledge, or if a borrower fails to attend a scheduled exit counseling session, the school must mail written exit counseling materials to the borrower at his or her last known address.
To complete exit interview for the Federal Perkins loan, please visit www.uasexit.com.
NOTE: There will be a hold on all educational records (i.e. diploma, transcript, etc) until the exit interview is completed.
Repayment
The Federal Perkins loan program has a nine month grace period so that borrowers begin repayment in the tenth month upon graduating, falling below half-time status, or withdrawing from their college or university. The federal government does not charge interest on the Federal Perkins loan while borrowers maintain an enrollment status of half-time, during the nine month grace period or during authorized periods of deferment.
The monthly repayment will depend on the size of the debt and the length of the repayment period. The chart below shows typical monthly payments and total interest charges for three different 5% loans over a ten year period.
|
Total Loan Amount |
Number of Payments |
Approximate Monthly Payment |
Total Interest Charges |
Total Repaid |
|
$4,000 |
120 |
$42.43 |
$1,091.01 |
$5,091.01 |
|
$5,000 |
120 |
$53.03 |
$1,364.03 |
$6,364.03 |
|
$15,000 |
120 |
$159.10 |
$4,091.73 |
$19,091.73 |
The borrower will be billed on the first of each month. The borrower may choose to submit payment in the following manner:
- Electronic at www.uasecho.com
- By check over the phone at 1-800-999-6227
- By mail at:
University Accounting Service
P.O. Box 5291
Carol Stream, IL 60197-5291
When making a payment to student loan(s), please make checks payable to SMU. Also include the remittance portion of the billing statement. If the borrower does not have the remittance portion, please write the Social Security number in the Memo section.
Deferment or forbearance
Under certain conditions, borrowers can receive a deferment or forbearance on their loan. During a deferment, borrowers are allowed to temporarily postpone payments on their loan, and no interest accrues.
Deferments are not automatic. Borrowers must apply for one through their school by using a deferment request form. Borrowers must file their deferment request on time or they will pay a late charge.
If borrowers are temporarily unable to meet their repayment schedule but are not eligible for a deferment, they can receive forbearance for a limited and specific period. During forbearance, payments are postponed or reduced. Interest continues to accrue; borrowers are responsible for it.
Forbearance isn't automatic either. Borrowers may be granted forbearance in up to 12-month intervals for up to three years. Borrowers must apply for forbearance through the school or University Accounting Service, the agency the school employs to service their loan. Borrowers have to provide documentation to support their request for forbearance. Borrowers must continue making scheduled payments until they are notified that deferment or forbearance has been granted.
For more information regarding deferment or forbearance eligibility, please visit www.uaservice.com/Defer.html.
Cancellation
The loan can be cancelled if the borrower dies or becomes totally and permanently disabled. A loan can also qualify for cancellation under certain other conditions-as long as the borrower is not in default.
If the borrower serves as an enlisted person in certain specialties of the Armed Forces, the U.S. Department of Defense might, as an enlistment incentive, repay a portion of their student loan. Note that this is not a cancellation. If the borrower thinks they qualify, contact their recruiting officer.
If the borrower has any questions about the terms of their Federal Perkins Loan, repayment obligations, deferment, forbearance, or cancellation, they will need to check with the school. Only the school may grant deferment, forbearance, or cancellation, or make other decisions concerning their loan.
For additional information regarding cancellation, please visit www.uaservice.com/Cancel.html.
Consolidation
If the borrower is graduating and entering repayment on their Federal Perkins loan(s), or if the borrower has already entered into repayment, a Consolidation Loan can help ease the burden of loan payments. Loan consolidation provides many positive benefits such as low fixed interest rates, a longer repayment period, and a single monthly payment to one lender. These benefits often allow recent graduates to begin paying off their loans without placing an undo burden on their entry into the job market. However, depending on the borrower’s specific circumstances, a consolidation loan may or may not be right for them.
For more information regarding consolidation, please visit www.uaservice.com/Consolidate.html.
Rehabilitation
Seriously delinquent Federal Perkins loans may be rehabilitated. After 12 consecutive monthly payments, the account is considered current and reported to the credit bureaus and National Student Loan Database (NSLDS) as such. SMU will determine the amount to be paid during the rehabilitation. The borrower may rehabilitate the account only once. If the borrower defaults on the loan again after a successful rehabilitation the borrower cannot receive this benefit again.
Helpful Link
For more information, please contact 214-768-3417 and ask to speak to the Assistant Director of Student Financial Operations.
