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On September 30, 2017, the Federal Perkins Loan program ended, and final disbursements were permitted through June 30, 2018. Currently, students cannot receive Perkins Loans, and Washington Adventist University no longer offers Perkins awards. The university is required, however, to inform Perkins Loan borrowers of their rights and responsibilities.
The Federal Perkins Loan is a low-interest (5 percent) campus-based loan program. The federal government pays the interest on the Perkins Loan while a student is enrolled for at least six semester hours. Repayment begins nine months after withdrawal, graduation, or dropping below half-time status, whichever comes first.
There is a maximum 10-year repayment period. The minimum monthly payment is $40.
As a borrower:
- You must be provided with a disclosure statement before repayment begins. The minimum quarterly payment is $120 (the minimum monthly payment is $40).
- You have the right to a grace period before repayment begins. This nine month grace period starts after you leave school or drop to less than halftime. You have up to a maximum of 10 years to repay. Interest is fixed at 5 percent and begins to accrue at the end of your grace period.
- You have the right to consolidate with your other federal loans.
- Your Perkins Loan activity will be reported to a national credit bureau.
- You have the right to deferment of repayment if you qualify. The conditions that qualify a borrower for a deferment are listed on your promissory note.
- You may request forbearance if you are unable to meet your repayment schedule and are not eligible for a deferment. Forbearance means permitting payments to be postponed temporarily, allowing either an extension of time or lower payments.
- Full or partial cancellation may be granted for certain types of elementary or secondary school teaching; specific nursing or medical technician careers providing health care service; certain service careers working for a public or private nonprofit child or family service agency for high-risk children from low-income communities; for military service in areas of hostility; for full-time staff members in Head Start; for participation in the Peace Corps or other organizations under the Domestic Volunteer Service Act of 1973; and in the event of death or permanent disability.
- If you enter the military service, U.S. Public Health Service, National Oceanic and Atmospheric Administration, Peace Corps, VISTA or comparable tax-exempt organization, return to at least half-time enrollment at a higher education institution, enter a professional internship, become temporarily totally disabled or unable to work while providing care for a dependent or on maternity leave, you may request that payments on a Federal Perkins Loan be deferred.
- Your loan obligation will be cancelled in the event of your death or permanent disability.
As a Perkins Loan borrower, you have the following responsibilities:
- You are responsible for repaying the full amount of your Federal Perkins Loan even if you:
- Do not complete the program;
- Are unable to obtain employment upon completion; or
- Are dissatisfied with the program or other services you purchased from the school.
- Repayment begins the day after your nine-month grace period ends.
- You must report any of the following changes to Washington Adventist University, Student Accounts Office, 7600 Flower Avenue, Takoma Park, MD 20912-7796 or call 301-891-4005 or 800-835-4210:
- Change of address or telephone number
- Change of name (for example, maiden name to married name)
- WAU uses Heartland ECSI as its servicer to collect and process payments and deferments. You must also notify Heartland ECSI directly of a name or address change by writing to Heartland ECSI, 100 Global View Dr., Warrendale, PA 15086 or calling 888-549-3274.
- You must complete an exit session when you graduate to review the terms and conditions of your loan and to receive repayment information.
- You must promptly answer any communication from Washington Adventist University and Heartland ECSI regarding your loan and must contact them if you cannot make payments as scheduled.
Perkins Loan Default - Default is the failure to make an installment payment when due or the inability to submit timely documentation of eligibility for deferment or cancellation.
If you default, the total loan may become due and payable immediately. Legal action could be taken, and you may be required to pay attorney fees and collection costs. The disclosure of default may be made to credit bureaus.
Cancellation and deferment benefits may be lost, and no additional financial aid can be awarded. Your loan will be turned over to a collection agency if there has been no activity on your account for 12 months after the repayment begins.
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