What Can I Do To Avoid Delinquency And Default
- Contact your loan servicer
- Contact the USU Logan Financial Aid Office and ask to speak with Default Prevention
Unlike other traditional lenders and collection agencies, student loan servicers want you to be out of default and in good standing. They do not want to send you to a potentially harmful collection agency. There are many options available to help students avoid or get out of student loan delinquency and default including various student loan repayment plans, deferment, and forebearance. Additional information regarding student loan repayment can be found in the Financial Aid Exit Counseling Information or through the Federal Student Aid website
Loans Accepted For Assignment
Official Notification of Acceptance Report When manual paper assignments are accepted, the school will receive a document identified as a Perkins Load Database Report via email. The Acceptance Report is sent securely as an attachment from the email address . The subject line of the email is Acceptance Report and the body states that the attached is the acceptance report for date of batch submission.
A password is sent from the same email address separately in order to open the reports. This report provides borrower identification information, school identification information, and outstanding principal, interest and fees accepted for assignment by the Department. This is the official Acceptance Report notice and should be retained in the schools records. Schools that utilize a third-party servicer to complete NSLDS monthly reporting must ensure that the Acceptance reports are provided to those servicers, and that the servicers update the loan status of accepted loans in NSLDS.
Hard copies of the acceptance notices may be sent to the address provided in the schools program participation agreement. The school should ensure that its mail distribution staff becomes familiar with these notices and the offices to which they should be distributed.
Note: Schools that use the Perkins Loan Assignment System for electronic submission can access information about accepted and rejected assignments through PLAS. These reports can be viewed online or printed from PLAS.
Obtaining A Dream Loan
- Fresno State DREAM loan application can be here
- If you are awarded a DREAM loan by the financial aid office you will need to complete the DREAM loan Master Promissory Note , using the Social Security Number or Individual Taxpayer Identification Number listed on your application.
- Complete the Dream Loan Disclosures, using the Social Security Number or Individual Taxpayer Identification Number listed on your application. This requirement will be added to your student checklist after you accept the loan.
- Check your Fresno State email frequently for updates from our office.
- Be sure to use the Social Security Number or Individual Taxpayer Identification Number listed on your Fresno State application when completing any requirements for your DREAM loan.
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What Are Perkins Loans
Perkins loans are subsidized loans for undergraduate and graduate borrowers with extreme financial need. The loan program was eliminated Sept. 30, 2017, after renewal efforts failed in Congress. However, you can still pursue forgiveness for existing Perkins loans if you qualify.
The total amount of Perkins loans that borrowers could take out as an undergrad was $27,500 as a grad student, borrowers could get an additional $32,500. Perkins loans, unlike other federal loans, always carry a 5% interest rate and don’t have fees.
Student Loan Interest Payments
Eastern Washington University will generate 1098E forms for borrowers who have paid interest that totaled $600 or more in a calendar year to EWU while in repayment of a Perkins Loan. These forms will be mailed out by January 31. Interest that was paid may be deducted on your income tax return.
For borrowers that paid interest which totaled less than $600 we will mail out an informational letter the end of January informing you of the amount of interest paid for the year.
1098E Forms, informational letters and all interest payment information are also available via your Borrower Web Access Account under Online Forms.
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Repaying Perkins And Columbia Loans
Repaying Federal Perkins and Columbia Institutional Loans
University Accounting Service is Columbia University’s loan servicer for Federal Perkins, Health Professional, Nursing Student Loans, Loan to Disadvantaged Students, and Columbia University Institutional Loans.
- The repayment period is 10 years.
- Perkins Loan replayment begins 9 months after graduation or after enrollment status drops to less than half-time.
- Institutional Loan repayment begins 6 months after graduation or after enrollment status drops to less than half-time.
During the grace period for either loan type, you are not required to make payments, and interest will not accrue on your loan. There are no prepayment penalties on these loans. Some deferment and forbearance options are available please contact UAS for additional information.
If your loan was disbursed in a past school year and you’re still in school, keep your contact information up to date with Columbia University’s Student Loans Servicer, University Accounting Services . Please email UAS at or call 870-8701 when you:
- drop below half-time enrollment, or
- stop going to school.
Retaining The Electronic Mpn
If the student completed an eMPN, your school must maintain the original electronic promissory note, plus a certification and other supporting information regarding the creation and maintenance of any electronically-signed Perkins Loan promissory note or eMPN. Your school must provide this certification to the Department, upon request, should it be needed to enforce an assigned loan. Schools and lenders are required to maintain the electronic promissory note and supporting documentation for at least three years after all loan obligations evidenced by the note are satisfied.
When using an e-signed MPN, a school must not only meet the Departments Standards for Electronic Signatures in Electronic Stu- dent Loan Transactions as specified in DCL GEN-01-06, but also adhere to the regulatory requirements for retaining information on loans that are e-signed under 34 CFR 674.50. For additional information, please see Assignment under e-Sign or Perkins MPN section in Chapter 5 of this volume.
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Reconciling Nslds And School Data
The amount of loans and number of borrowers in NSLDS must match what is reported by the school on its final FISAP and also match its records for the outstanding portfolio. For the purposes of Perkins liquidation and closeout, schools must ensure that all outstanding Perkins Loans are properly accounted for and updated in NSLDS.
The Department suggests schools request a reconciliation report from NSLDS to ensure its records are consistent with the NSLDS data, and to reconcile any discrepancies.
Electronic Process For Returning Perkins Loan Funds To The Department
Before submitting a refund via G5 , your school should notify its bank that you will be doing so, as some banks will not release the funds unless notified in advance. The bank should be provided with the following ACH Company ID for the U.S. Department of Education: 910 200 0102. A user with the Payee role in G5 can then submit the refund via G5 by following these steps for returning Perkins Loans funds to the Department:
Log in to G5 at g5.gov.
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Distribution Of Assets From The Federal Perkins Loan Revolving Fund
The Extension Act amended HEA section 466. The HEA now requires each school participating in the Perkins Loan Program to return to the Department the Federal share of the schools Perkins Loan Revolving Fund . The Department began collecting the federal share of schools funds following the submission of the 20192020 FISAP.
The process used to determine the federal share of the Perkins Loan Revolving Fund, which must be returned to the Department, and the institutional share, which must be removed and returned to the institution, is similar to the Excess Liquid Capital process the Department had in place in accordance with HEA section 466. It is important to note that the Perkins Loan Revolving Fund asset distribution process accounts for changes in the Institutional Capital Contribution matching requirements that have occurred over time, as well as any overmatching by the institution. Also taken into consideration is any Federal Capital Contribution that has been previously returned by the institution to the Department, and any Institutional Capital Contribution that was previously returned to the institution.
Q: What Are My Deferment Benefits
- enrolled and attending as a regular student in at least a half-time course of study at an eligible school
- enrolled and attending as a regular student in a graduate fellowship program approved by the Department of Education engaged in graduate or post-graduate fellowship-supported study outside the US
- enrolled and attending a rehabilitation training program for disabled individuals approved by DOE
- engaged in public service that qualifies for cancellation of the loan
- seeking but unable to find full-time employment
- experiencing an economic hardship as determined by the school
- serving on active duty or performing qualifying National Guard duty during a war or other military operation or national emergency
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Required Elements Of Exit Counseling
Note: As part of the exit information, you must collect the name and address of the borrowers expected employer.
The Ombudsman Group is a resource for borrowers to use when other approaches to resolving student loan problems have failed. Borrowers should first attempt to resolve complaints by contacting the school, company, agency, or office directly involved. If the borrower has made a reasonable effort to resolve the problem through normal processes and has not been successful, he or she should contact the FSA Ombudsman.
- FSA Ombudsman Group Mailing Address
- U.S. Department of Education
Billing And Collection Costs
Your school must assess charges against the borrower, for the cost of actions taken with regard to past-due payments on the loan .
If your school cannot recover billing and collection costs from the borrower, you may charge the costs to the fund, provided the costs fall within the specifications described in the following paragraphs and corresponding regulations. Schools are no longer able to claim the Administrative Cost Allowance due to the expiration of the Perkins Loan Program. You must report the collection costs permitted in the regulations in the collections cost category on the FISAP. The only billing costs a school may charge the fund are the costs of telephone calls made to demand payment of overdue amounts not paid by the borrower. Even if the amount recovered from the borrower does not suffice to pay the amount of the past-due payments and the penalty or late charges, the school may charge the fund only for the unpaid portion of the actual cost of the calls.
The following collection costs may be charged to the Perkins Loan Fund if the costs are waived or not paid by the borrower:
Collection costs waived. If your school waives collection costs as incentive for repayment, the amount waived may be charged to the Fund.
Collection costs resulting from litigation, including attorneys fees. Collection costs resulting from litigation, including attorneys fees, may be charged to the Fund if not paid by the borrower but must not exceed the sum of:
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Contacting The Borrower By Telephone
If the borrower does not respond to the final demand letter within 30 days of the date the letter was sent, you must try to contact him or her by telephone before beginning collection procedures. As telephone contact is often very effective in getting the borrower to begin repayment, one call may avoid the more costly procedures of collection.
You should make at least two attempts to reach the borrower on different days and at different times. If the borrower has an unlisted telephone number, you must make reasonable attempts to obtain it by contacting sources such as the borrowers employer or parents. If you are still unsuccessful, you should document the contact attempts in your files.
Assessing And Documenting Costs
You may charge either actual costs incurred in collecting the borrowers loan or average costs incurred for similar actions taken to collect loans in similar stages of delinquency. Your school must assess all reasonable collection costs against the borrower despite any provisions of state law that would conflict with the above provisions. You must document the basis for the costs assessed. For audit purposes, a school must keep documentation supporting costs, including telephone bills and receipts from collection firms.
For loans referred to a collection agency on or after July 1, 2008, collection costs charged the borrower may not exceed:
first collection effort30% of the principal, interest, and late charges collected
second and subsequent collection efforts40% of the principal, interest, and late charges collected
for collection efforts resulting from litigation40% of principal, interest, and late charges collected, plus court costs.
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Public Service Loan Forgiveness Program
Forgives the remaining balance on your Federal Direct Loans after 120 qualifying payments .
View complete program details at StudentAid.gov/publicservice.
Here are some highlights:
- This program has the broadest employment qualification requirements of the federal programs listedit doesnt require that you teach at a low-income a public school, or even be a teacher. Most full-time public and private elementary and secondary school teachers will meet the employment requirements.
- You must have Direct Loans. If you have other types of federal loans, like FFEL or Perkins Loans, you must consolidate in order for those loans to qualify. To check which types of loans you have, log in to StudentAid.gov.
- You should repay your loans on an income-driven repayment plan if you want to get the most value out of the program. You can apply for an income-driven repayment plan on StudentLoans.gov.
- In order for payments to count toward the 120 needed to get forgiveness, they need to be full payments, made no more than 15 days late, and made after October 1, 2007.
- Loan amounts forgiven under PSLF are NOT considered taxable by the IRS.
To confirm whether you qualify for the program, submit this form ASAP.
Perkins Billing Procedures And Overdue Payments
Billing refers to the series of actions the school routinely performs to notify borrowers of payments due, remind them of overdue payments, and demand payment of overdue amounts. The school may choose a coupon payment system as its method of billing. The school must send the coupons to the borrower at least 30 days before the first payment is due when using a coupon payment system.
If the school does not use a coupon system, it must, at least 30 days before the first payment is due, send the borrower a statement of account and a written notice giving the name and address of the party to which payments should be sent. The statement of account includes information such as the total amount borrowed, the interest rate on the loan, and the amount of the monthly payment. For subsequent payments, the school must send the borrower a statement of account at least 15 days before the due date of the payment.
If the borrower chooses to make payments through electronic funds transfer, the school doesnt have to send the borrower a statement of account before each payment. However, the school must send the borrower an annual statement of account that lists the required amounts and dates of repayment, as well as any information tracking the status of any late charges.
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When Do I Pay Back This Loan
If youre attending school at least , you have a nine month grace period before you have to pay. The grace period begins right after you graduate, leave school, or are enrolled less than . Those who are active duty in the military, check if you are eligible for a longer grace period. If youre enrolled less than , check with your financial aid administrator about your grace period. At the end of your grace period, you must begin repaying your loan. You are allowed up to 10 years to pay off your loans.
The U.S. Department of Education has issued special guidance for those called to active duty as a result of the September 11, 2001 terrorist attacks. If a borrowers loans are in an in-school status, in-school deferment status, or in a grace period when the borrower is ordered to active duty or reassigned, the loan holder must maintain the loans in that status during the period of the borrowers active duty service or reassignment, plus the time necessary for the borrower to resume enrollment in the next regular enrollment period reasonably available to the borrower. The maintenance of loan status cannot exceed a total of three years, including the period of time necessary for the borrower to resume enrollment.
For more information about loan repayment options that might be available to a borrower in this situation, the loan holder should be contacted directly.
Options For Handling Perkins Loan Repayment
One of your main priorities is to make Perkins loan payments on time, every time, to protect your . Missed or late payments will have a negative impact on your credit, which can prevent you from taking out other loans in the future at favorable rates. If youd like to change your repayment plan or amount, check your options below.
|Not all plans, such as income-driven repayment, are available to Perkins loan borrowers.|
|Delay your payment||The government pays the interest charged during a qualifying deferment, so interest wont accrue.|
|Pursue cancellation||If you work in a qualifying public service job, you could see up to 100% of your balance canceled.|
|Weigh consolidation and refinancing||Before you yield exclusive Perkins loans benefits by consolidating or refinancing, make sure youre confident you wont use them.|
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