Rights and Responsibilities

For a full and complete disclosure of your obligations under the Federal Perkins Loan Program, you should become familiar with the specific language of the master promissory note you have signed, or will sign, electronically. By signing the promissory note and accepting the funds referred to in the note, you are agreeing to repay the loan. You are also obligated to apply the proceeds to educational expenses. Read the note carefully to fully understand all provisions. Your note explains what you have agreed to do by accepting the loan. You should become familiar with all information in the note, especially the following provisions:

• Payments on the loan will be made to the Perkins Loan billing service, ESCI, at:
  • UWSP L9
    C/O Educational Computer Systems, Inc.
    181 Montour Run Road
    Coraopolis, PA 15108-9408
• The principal amount (amount you were loaned) will be sent to you in a disclosure notice.
• The annual simple interest rate is 5% during the repayment period.
• UWSP limits Perkins borrowing to a maximum of up to $2,000 annually. This limitation is due to the funding. The graduate student cumulative maximum is $30,000 which included any amount borrowed for undergraduate study.
• Perkins Loans are reported to a credit bureau or credit reporting agency at the time of the first loan advance.
• Your decision to accept or decline the Perkins Loan does not affect your eligibility for the other forms of assistance that you may have been offered.
• Your University billing statement shows the amount of the charges you owe the University. If you have an outstanding balance, you may be asked to use the proceeds of your Perkins Loan to pay your bill.
• Repayment of a Perkins Loan begins after you cease being at least a half-time student and after a nine-month grace period expires at which time interest will begin to be charged.
• A minimum monthly payment is assigned to your account. The maximum timeframe within which the loan must be repaid is 10 years.
• The total cumulative balance and estimated monthly payment figures are available from the Perkins Loan Office upon request. You may calculate your estimated monthly payment by multiplying the total Perkins Loan amounts borrowed by .0106067. Keep in mind that you will have to pay at least the minimum payment (as explained in Item 9 above).
• You may repay the loan at any time without penalty. You may also be eligible to have your payments deferred for a number of reasons. The Perkins Loan also provides you with an opportunity to cancel all or part of your loan for certain types of employment of service. Refer to your promissory note for deferment and cancellation provisions, or contact the Perkins Loan Office for details.
• If you are unable to make payments as scheduled, it may be possible to delay or temporarily decrease your payments under certain circumstances. Contact the UWSP Perkins Loan Office for more information.
• You also have the option of consolidating your student loans. A Consolidation Loan is designed to help borrowers simplify loan repayment by allowing the borrower to consolidate several types of federal loans with various repayment schedules into one loan. The interest for Consolidation Loans is fixed for the entire time you are repaying the loan at the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest one-eighth of a percent. The interest rate is currently capped at 8.25%. Consolidation Loans can be obtained through participating lenders, guarantee agencies, and, under certain conditions, through the federal government.
• If you fail to make a loan payment when it is due, you may go into “default.” This designation has serious consequences. Default will cause you to lose your deferment and cancellation benefits. Furthermore, your loan will be accelerated and referred to a collection agency, which means that the entire principal balance, interest, late charges, and collection costs will be due upon demand. A default classification will also prohibit you from receiving federal student aid in the future should you decide to return to school.

Contact a counselor in the Financial Aid Office if you need any clarification.