Disbursement Requirements and Information:
The borrower must complete the following before their Federal Perkins student loan will be disbursed:
- Complete a master promissory note and return it to the BURSAR'S OFFICE, University Hall room #223.
- Be enrolled in a minimum of half-time status:
- Undergraduates - 6 credit hours per quarter
- Graduates/Law - 4 credit hours per term
- FIRST TIME BORROWERS AT THE UNIVERSITY OF DENVER must also:
- Read the "Borrower Rights and Responsibilities" information.
- Complete the Entrance Interview online.
General Information, Borrower Rights and Responsibilities
The Federal Perkins Loan Program is a need based loan that has been guaranteed by the Federal Government. The Perkins loan must be used for educational expenses while in attendance at the University of Denver. These expenses may include tuition, fees, books, room & board, and transportation.
The loan is interest free while the borrower is enrolled at least half-time. Once the borrower drops below half-time enrollment, the GRACE period, which is explained below, begins immediately.
The University of Denver is the holder of the borrower's Perkins promissory note. The borrower must report any change of name, address, telephone number, Social Security number, or school enrollment status to the Bursar's office.
The following explains the terms and conditions of the borrower's loan:
Cancellation: A borrower may have all or part of his or her loan (including interest) cancelled for engaging in public service such as: teaching; service in a Head Start program; service in the Peace Corps or ACTION; service in the military; or law enforcement or as a corrections officer. Cancellation is also granted in the event of the borrower's death, total and permanent disability, or - in exceptional cases- bankruptcy. Cancellation provisions vary, depending on whether the borrower has a Federal Perkins, Direct, or Defense loan. The following procedures apply to any Perkins loan cancellation request:
- The borrower must apply for cancellation of a loan by obtaining the appropriate cancellation form from the BURSAR'S OFFICE at the University of Denver.
- The form must be submitted to the University within 30 days from the request.
- The borrower must provide any documentation the school requests to show that he or she qualifies for the cancellation. For additional information the borrower may contact the University of Denver's Bursar's Office.
- Credit Bureau Reporting: All disbursements will be reported to a national credit bureau agency on a monthly basis.
- Default: Should the borrower fail to repay his or her loan he or she will be in default. Any default will be reflected on the borrower's credit bureau record for at least seven years. Collection on the defaulted loan may be referred to an outside collection agency or to the Federal government, whereby these entities may exercise their rights in accordance with the law. This may result in additional collection and legal costs to the borrower.
- Deferment: A borrower is entitled to have the repayment of a loan deferred under certain circumstances. A deferment is a period of time during which the borrower is not required to repay the loan principal and interest will not accrue. Interest does accrue during a hardship deferment for loans made before July 1, 1993. Borrowers must apply for a deferment in writing. They may do so by contacting the University's BURSAR'S OFFICE or accessing the form at Frequently Used Forms on the Bursar's Office forms page. The form must be submitted to DU, with the appropriate documentation, by the date established by the school. The borrower must file a form at least once a year for as long as the deferment is presumed effective. The borrower must immediately report any change in deferment status to the University.
- Deferment Privileges: The borrower may delay payments on their loan by submitting forms, properly completed and certified, for any of the following reasons (subject to approval): Student; Military; Peace Corps or VISTA; Public Health Service; Volunteer Service in a Tax Exempt Organization; Temporary Disability; Internships; Economic Hardship; Forbearance; Hardship; Mother with Preschool Age Children; or Parental or Maternity Leave.
- Grace Period: The interval between graduation or termination of at least half-time enrollment and commencement of repayment is called the GRACE PERIOD. The grace period consists of nine (9) consecutive months for loans originated after January 1, 1987. During this period, repayment need not be made and interest will not accrue. However, the borrower is encouraged, at his or her option and without penalty, to make a pre-payment during this period of time. There is no pre-payment penalty.
- Interest Rate: The interest rate on the Perkins loan is 5% and accrues after the borrower's initial grace period.
Loan Consolidation:If the borrower has student loans from one or more lenders, then the borrower may reduce his or her payments or extend the repayment period by consolidating the loans. To qualify for consolidation the borrower must:
- Have $7,500 in outstanding loans and
- Have left school. Only the Federal/National Direct, SLS, Stafford (both subsidized and subsidized), and/or Health Professions Student loans can be consolidated. For additional information you may contact your lender(s).
- Loan Limits: The Federal Perkins/National Direct Student Loan (NSDL) loan is a need-based financial aid award, which when combined with other financial aid awards, may not exceed the student's calculated need. According to Federal guidelines, the maximum annual amount an eligible student may borrow is $5,500 per year for an undergraduate student, or $8,000 per year for a graduate or professional student. The maximum cumulative amount an eligible student may borrow over the course of his or her education is $27,500 for an undergraduate student, or $60,000 for a graduate or professional student. The $60,000 is a cumulative amount from undergraduate and graduate/professional studies.
- Loan Rehabilitation: If the borrower defaults on his or her NDSL or Federal Perkins Loan, he or she may rehabilitate their defaulted loan by requesting the rehabilitation and by making an on-time, monthly payment as determined by the loan holder, each month for twelve consecutive months. If the borrower successfully rehabilitates his or her defaulted NDSL or Federal Perkins Loan, he or she will again be subject to the terms and conditions and qualify for the benefits and privileges of the borrowers original promissory note and the default will be removed from the borrower's credit history.The borrower can rehabilitate a defaulted NDSL or Federal Perkins Loan only once.
- Repayment: Repayment commences after the borrower's grace period has ended. The borrower's payments are QUARTERLY and the borrower is billed in arrears for interest accrued. Quarterly pay DUE DATES are fixed at 3/1, 6/1, 9/1 12/1. Example: If the borrower graduated June '04 his/her grace period would end March '05. Interest would accrue 3/15/05, 4/15/05 and on 5/15/05. At this time the borrower would be billed for the 6/1/05 payment (This includes 3 months interest and principal). If the borrower had an outstanding Federal Perkins/Direct loan prior to October 1, 1992, the first quarterly payment will be at least $90.00, If the borrower's loan originated after October 1, 1992, the quarterly payments will be at least $120.00. These figures are guidelines in accordance with Federal regulations. The amounts are dependent upon the amount borrowed, these are the minimum amounts you can expect to repay.
- Student Loan Ombudsman: If the borrower disputes the terms of their NDSL or Federal Perkins Loan in writing and the holder of the borrower's loan is unable to resolve the dispute, the borrower may seek the assistance of the Department of Education's Student Loan Ombudsman. The Student Loan Ombudsman will review and attempt to informally resolve the borrower's dispute and may be reached at 1-877-557-2575.
- Borrowers: Please Remember to Sign Your Promissory Note.