Perkins Loan Promissory Note
Once you have been awarded a Perkins Loan for a specific academic year, you will be mailed, or on some cases, asked to read and sign online, a packet including a Promissory Note outlining the terms and conditions of the loan, and a Statement of Rights and Responsibilities form. You complete, sign and return these documents to your college loan office.
The statement of Rights and Responsibilities Document varies in some respects from school to school but generally covers the following information.
You must immediately report any of the following changes to your college financial aid office.
- withdrawal from the university;
- transfer to another school;
- drop below half-time status (6 credit hours);
- name change;
- address, or parent’s address changes;
- social security number should change;
- driver’s license number should change.
At graduation time, you must participate in an Exit Interview or counseling session.
Your first payment will be due upon the expiration of the grace period and that the grace period is nine (9) months following separation from the school.
You understand that the minimum monthly payment will be at least $40 or $120 each quarter and that it may be more if the amount borrowed requires larger payments. You also understand that all payments will be applied first to accrued interest and then to the principal balance of the loan.
You understand the ANNUAL PERCENTAGE RATE OF 5% will be the finance charge based on the unpaid principal balance and that it will begin to accrue at the end of the grace period.
You understand that aggregate loan limits are $15,000 for an undergraduate student, $4,000 maximum per year and $30,000 for a graduate or professional student including loans borrowed as an undergraduate student.
You understand that you may request loan cancellation, if you meet the eligibility criteria contained in the terms and conditions of the promissory note.
You understand that if you become eligible for any deferment benefits provided in the terms and conditions of the promissory note, you must request that the payments on your loan be deferred or make scheduled payments when due.
You understand that if you default on the loan:
Your school may withhold future services such as transcripts.
The entire unpaid indebtedness including accrued interest may be due immediately.
Your school will utilize a collection agency and/or litigation to recover the outstanding debt, and you agree to pay all collection costs and attorney’s fees related to the collection of the loan in the event of default.
You may without penalty pay all or any part of the loan at any time before regular payments are scheduled to begin and that future interest will be reduced by making such payments.
The Promissory Note is a legal document that carries serious consequences for non-performance. However, the performance requirements are reasonable and mostly require some attention to detail and good communication habits; the same skills that will help you through college successfully.
You will be ineligible for further TITLE IV funds.