PERKINS LOAN ENTRANCE INTERVIEW CONFIRMATION Last Name First Name Student ID # Permanent Home Address City/State Zip Home Telephone Number Cell Telephone Number First and Last Name of nearest relative, not residing at permanent home address/relationship Address City/State Zip Telephone Number Check Here I understand the following information regarding my Federal Perkins Student Loan: Ikkff Cardinal Stritch University is the Lender of this loan. The Federal Perkins Student Loan is an entirely different loan than the Stafford and the Plus Loan. I understand that I am obligated to repay my loan even if I do not complete the program, am unable to obtain employment, or I am otherwise dissatisfied with the education or other services received. I must repay my loan(s) with all accrued interest. I have a maximum of 10 years to repay my loan (unless my loans are consolidated or specified differently on the repayment schedule) I may repay all or part of my loan without penalty. The minimum monthly payment for my loan is $40.00. Monthly payment can be more depending on the amount borrowed. Repayment will begin following a 9 month grace period. The interest rate for my loan is 5%. All loans are reported to credit bureau organizations. My loan will be submitted to the National Student Loan Data System (NSLDS) and will be accessible by guaranty agencies, lenders, and institutions determined to be authorized users of the data system.
PERKINS ENTRANCE COUNSELING CONFIRMATION - CONTINUED While currently enrolled, I must notify the Cardinal Stritch University business office, and after I leave the University I must notify University Accounting Service, in writing, within 10 days, if I: Change my name Change my address Change my graduation date Transfer to another school Enroll less than half-time Withdraw from school I must contact University Accounting Services for any deferment/forbearance requests. If I am late with a payment on my student loan, I will be considered in default and the following may result: It will be reported to the credit bureau(s) and will have a negative effect on my credit rating The entire unpaid amount of my loan, including interest and late fees, will become due and payable immediately I will be ineligible to receive any additional federal or state financial aid funds. I have read this form and I have read and understand the information provided to me in relation to Perkins entrance counseling. Student Signature Date Please return the two pages of entrance counseling confirmation to the Financial Aid Office, 6801 N Yates Road, Milwaukee WI 53217 or fax # 414-410-4088.
Perkins Loan Entrance Counseling For most federal financial aid, a student must: Attend at least half time (6 credits per term) Maintain Satisfactory Academic Progress (according to your school s policy) You must also meet other eligibility requirements For private/alternative loans, check with your lender for eligibility requirements Check with school for eligibility for each type of aid you are receiving Know your school s tuition and financial aid refund policy Doesn t need to be repaid Scholarships Federal/State Grants Pell FSEOG (Federal Supplemental Educational Opportunity Grant) Must be repaid Loans Federal Private/Alternative Other Grants Local or sponsored group organizations, etc. Work-study Money you earn while working as a student Tip: Search first for sources that don t need to be repaid! 1
Financial aid, including loans Parental assistance Stocks/Mutual Funds State 529 Plans Savings Gifts Work earnings EXPENSES Tuition Room Board Institutional fees Books Supplies Other documented, authorized cost Equipment Dependent child care Transportation Commuting expenses Rental or purchase of a personal computer Origination fee and guarantee fee WHO S INVOLVED? A QUICK REFRESHER! Federal Government (authorizes funds for grant and loan programs, such as the Direct Loan Program School (determines your eligibility, certifies loan amounts, monitors your enrollment status) Lender (Banks, credit unions, S&L institutions, insurance companies and other institutions who can fund education loans) 2
WHO S INVOLVED? A QUICK REFRESHER! Borrower (student or parent who signs the promissory note to repay the loan) Servicer (processes loans, payments and deferments; does not own the loan) Guarantor (guarantees / insures the loan against borrower default) Secondary Market (purchases loans from lenders) LOANS MUST BE REPAID! Even if you do not complete your program Even if you are not able to find a job Even if you don t like your school or its services A binding legal document you sign when you get a student loan Promise to repay all Perkins loan funds you receive May be able to sign just once for all Perkins loans received at Institution providing funds 3
Undergraduate $5500 Graduate $8000 Undergraduate: 1 st and 2 nd year students not to exceed $11,000 3 rd and 4 th year students not to exceed $27,500 Graduate: Not to exceed $60,000 Interest Rate: Fixed rate of 5% (interest will not begin accruing until after the grace period) 9 Month grace period (this begins upon graduation, withdrawal, or attending less than half-time) 10 Year Repayment (you may be eligible for deferments, forbearance, loan forgiveness contact University Accounting Services for further information) $40 minimum payment 4
Your Perkins loan will be divided equally amongst your academic year. You will receive half of the Perkins amount awarded for your first semester or payment period and then the remaining half for you second semester or payment period. This information is from the 2010-2011 Funding Your Education Publication from the Department of Education. For more information regarding loan repayment, please visit: http://studentaid.ed.gov/students/publications/student_guide/2010-2011/english/loanrepayment.htm Department of Education's central database for student aid All Federal Grants and Federal Student loans are tracked through their entire cycle; from start to finish Receives data from schools, guaranty agencies, the Direct Loan program, the Pell Grant program, and other federal programs The NSLDS Student Access Web site www.nslds.ed.gov available to borrowers to track and manage their federal student loans and/or grants 24 hours a day, 7 days a week 5
Deferment Government pays interest on subsidized loans Temporarily stops payments under certain qualified conditions Most common deferments In-school Unemployment Economic Hardship Military Deferment Forbearance Allows you to temporarily postpone your monthly payments Extends the period of time allowed to make payments Allows you to temporarily make smaller payments You are still responsible for the interest You may pay the interest as it accrues Any unpaid interest may be added to your principal Typically granted at the discretion of the lender or servicer The Perkins loan program may provide you with an opportunity to cancel all or part of your loan for certain types of employment or service. Please visit: University Accounting Services website information relating to loan cancelations at: https://www.uaservice.com/borrower-student/ndsl- Perkins_Cancellation_Eligibility.html 6
Disclosure statement Copy of Promissory Note and actual note when Paid In Full Repayment schedule Federal interest benefits, if eligible Grace period Prepayment without penalty Notice of loan sale or transfer (only if payments to be sent to new location) Identity of buyer Name and address of new lender/servicer Telephone numbers of new and old lenders/servicers Deferments when eligible Forbearance requests Notify lender/servicer of change in address Repay loan on schedule Attend exit interview Notify lender of demographic and personal status changes You get married and change your name 7
If you don t enroll Change schools Change name Change address Graduate or withdraw Deferment or forbearance request Difficulty repaying loan READ ALL MATERIALS Loan application and Promissory Note Rights and Responsibilities Disclosure statements KNOW WHO OWNS YOUR LOAN Keep notices of sales or transfers Know who services your loan Keep paperwork - set up a file Application/Promissory Notes Loan disclosure statements Loan repayment schedule Lender correspondence FROM you and TO you Record of payments you make Name & address of lender, servicer, guarantor Watch correspondence or any email you may receive regarding your account! 8
Know how much you borrow Prepayment Reduces total interest Saves lots of money in the end No fees or penalty for paying early Easy to begin payment during grace period Manage your loans online if this option is available to you. For unresolved problems, the Federal Department of Education has an ombudsman that can help. http://www.ombudsman.ed.gov Fsaombudsmanoffice@ed.gov Toll free: 1-877-557-2575 U.S. Department of Education FSA Ombudsman 830 First Street, NE Washington DC 20202-5144 As few as 5-30 days of delinquency (days after due date) could result in the following: Elimination of borrower benefits Reported to credit bureaus - this could damage your credit Annoying phone calls/letters, etc. Inability to secure future loans Late charges Tip: Automated payment from checking accounts and/or online bill payment can help! 9
Reported to national credit bureaus - will remain on your credit record for up to 7 years Payment status is reported when the payments become delinquent (late) This can have an impact later when you want to purchase a car or a house! Loan can be accelerated (immediate, full payment demanded) Loan may be sent to a collection agency and you can incur additional collection costs You can be taken to court and incur attorney s fees and court costs Tax refunds can be taken and applied to your loan Wages may be garnished Employment, particularly government employment, can be denied or lost Loss of deferment eligibility No longer eligible for future college financial aid (i.e.graduate loans) Holds may be placed on college records Professional licenses may be revoked, canceled, or not renewed 10
The Perkins loan(s) you borrow with Cardinal Stritch University will be serviced by University Accounting Services (UAS) UAS Contact Information 1-800-999-6227 https://www.uaservice.com/borrower- Student/Student_Loan_Links.html Please note any Perkins loans borrowed at other institutions may have different servicers, so be sure to contact the school you attended and verify the servicer of those loans. 11