Perkins Loan Exit Counseling

Perkins Exit Topic 1 of 6: Things You Need to Know

A Federal Perkins Loan is a low-interest (5 percent) loan for both undergraduate and graduate students with exceptional financial need. Your school is your lender. The loan comes from government funds, with a share contributed by the school. As a result, your school--or its billing service--is your contact for your Perkins Loan.

Now that you're leaving school (or dropping below half-time attendance), it's important to review the details of your Perkins Loan. Your rights and responsibilities are listed at the end of this session. Remember:

• You signed (either electronically or on paper) a Master Promissory Note, which is a legal agreement to indicate your commitment to repay your student loan(s).
• You MUST pay back your loan, even if:
  • You don't finish school,
  • You don't get a job after leaving school, or
  • Your education didn't meet your expectations.
• If you make regular, on-time, monthly payments, you will build a good credit history, which makes it easier for you to borrow money in the future.
• If you fail to make regular, on-time monthly payments, you will face serious consequences.
• Stay in close touch with the financial aid professionals at your school. Contact them, or their billing service, with any changes in your name, address, phone, employment situation, etc.
• Stay informed. Keep your records up to date and organized, so you can easily resolve problems. Know the amount of your student loan payments--and when repayment begins. Read all information carefully. Keep copies of any promissory notes you sign; they tell you the total amounts borrowed and the names and addresses of the institutions from which you borrowed.
• If you have trouble making payments, contact your school or its billing service immediately. You have several options for resolving difficulties.
• Develop a budget to help you manage your income and expenses, including your student loan payments, credit card debt, and other living expenses.

• withdraw from school (or drop below half-time status),
• graduate,
• transfer to a new school (until your loan is paid in full, the school that administers your Perkins loan has the right to contact your new school--and any other school you attend--to find out about your student status, year of study, dates of attendance, graduation, withdrawal, transfer, and current address),
• change your employer (or your employer's address changes),
• change your Social Security Number or driver's license number,
• change your expected graduation date, or
• experience any other change that affects your loan status (for example, if you get a job and therefore lose your eligibility for an unemployment deferment).