Loan Repayment - Federal Perkins Loan
Students who have borrowed Federal Perkins Loans are required to repay the amount of funds borrowed, with interest, according to the terms of the promissory note that was signed. Loans are legal obligations of which you are subject to all terms and conditions.
Interest on a Federal Perkins Loan is computed at the rate of 5% per annum simple interest on the unpaid principal balance.
Grace period and repayment begin date
After you graduate, leave school, or drop below half-time enrollment, your Federal Perkins Loan enters a 9 month grace period. When the grace period ends, your loan enters repayment.
At the time you are no longer enrolled at least half-time, you will be required to complete exit counseling.
The servicer is the agency responsible for billing and collection of your loan. Federal Perkins Loans are serviced by Brown University Loan Office.
You will receive information regarding repayment twice during your grace period.
There is no penalty for prepayment of your Federal Perkins Loan. Please be aware, any extra amount paid will be applied to your loan principal balance and will not reduce your next regularly scheduled payment.
A repayment schedule is provided at the time you complete exit counseling requirements. The repayment schedule indicates the amount borrowed, the interest rate, number of payments, and the date that the first payment is due.
Payments on Federal Perkins Loan are due to Brown University on the first day of each month. Loan billing statements are mailed approximately two weeks before the scheduled due date. To avoid the assessment of late charges, payments should be mailed well in advance of an approaching due date.
It is important to note that the billing statement is only a reminder of a payment due and that all payments are expected by the due date regardless of whether a statement is received. If you are nearing a repayment period and have not received a statement, please contact the Loan Office for assistance to determine the amounts due and to verify our records of your mailing address.
Address all payments to:
Brown University Cashiers Office
164 Angell St, 2nd floor, Box 1911
Providence, RI 02912-1911
A deferment is a temporary suspension of loan payments for specific situations such as reenrollment in school (at least half time), unemployment, or economic hardship. Interest does not accrue during this time on Federal Perkins Loans.
Economic Hardship Deferment
A borrower may be entitled to an economic hardship deferment for periods of up to one year at a time, not to exceed three years cumulatively, if the borrower provides satisfactory documentation to Brown University Loan Office showing that he / she is within any of the following categories:
- Has been granted an economic hardship deferment for either a Federal Stafford or PLUS Loan for the same period of time for which the Perkins Loan deferment has been requested;
- Is receiving federal or state public assistance, such as Temporary Assistance to Needy Families (TANF) (formerly, Aid to Families with Dependent Children), Supplemental Security Income, Food Stamps, or state general public assistance;
- Is working full time1 and earning a total monthly gross income that does not exceed 150 percent of the poverty line for the borrowers family size;
- Is not receiving total monthly gross income that is more than twice the amount in (3) above and that income minus an amount equal to the borrower's monthly payments on federal postsecondary education loans does not exceed the amount specified in (3) above;
- Is serving as a volunteer in the Peace Corps.
1 A borrower is considered to be working full time if he/she is expected to be employed for at least three consecutive months for at least 30 hours per week.
For further assistance with determining eligibility for the Economic Hardship Deferment, please see the Economic Hardship Calculator at: http://www.finaid.org/calculators/economichardship.phtml
A forbearance is a temporary postponement or reduction of payments for a period of time because you are experiencing financial difficulty. Interest accrues during forbearance, and you are responsible for paying it.
Upon making a properly documented written request, borrowers are entitled to forbearance of principal and interest or principal only, renewable at intervals of up to 12 months for periods that collectively do not exceed three years, under the following conditions: If monthly Title IV loan debt burden equals or exceeds 20 percent of my total monthly gross income; if the Department authorizes a period of forbearance due to a national military mobilization or other national emergency; or if the School determines that I qualify due to poor health or for other reasons, including service in AmeriCorps.
Rehabilitation enables defaulted borrowers of federal Perkins loans to bring their accounts current, to remove previously reported derogatory credit information, and to reinstate the remaining balance of privileges and benefits of the loan. Perkins Loan orrowers must request rehabilitation from the Brown University Loan Office in writing. Please contact our office at firstname.lastname@example.org or (401) 863-3296 for further details.