Perkins Loan

• Steps to apply for a Federal Perkins Loan

  1. File the Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov  by March 1 for consideration and submit all required documents (as noted on the student’s myPurdue account) to the Division of Financial Aid (DFA). Eligibility for this loan is based on demonstrating a high level of financial need (as determined by the FAFSA) and available funding.
  2. DFA will send the student an Award Notice that the borrower can use to determine loan period, the type of eligibility, and the amount of eligibility.
  3. The borrower needs to determine how much they want to borrow and will have the option to accept the full amount offered or reduce the loan amount at myPurdue.

   

  How to Accept or Decline Offered Perkins Loans (as indicated on the myPurdue account)

  1. The student logs into their myPurdue account.
  2. Choose the “Financial” tab.
  3. Click “Award for Aid Year” in the left column.
  4. Choose the 2012-13 academic year.
  5. Click the 4th tab “Accept Award Offer”.

     a. Select “decline” to decline the loan offer and you’re done.

  • Please Note: Funding is limited.  Declined amounts will be re-awarded to students waiting for additional need-based funding.  It is unlikely that declined amounts can be reinstated as a result. 
  • To accept, enter a value up to the maximum amount offered.  Note that if you are attending both semesters, this amount will be divided between the two terms evenly.
  b. If you accepted the loan in step 5, you must continue to step 6.

  6. First time Perkins Loan borrowers at Purdue West Lafayette or one of the College of Technology Statewide locations must sign a Master Promissory Note.  One to two business days after accepting the loan on your myPurdue account you will receive an email to your purdue.edu email account from a 3rd-party loan servicer, ECSI.  The email will contain directions on how to complete the Master Promissory Note.  The promissory note is not available for you to complete until after you receive this email.  Brief instructions are provided here for your convenience.  Please note:  This is a separate promissory note with different instructions than those necessary for Stafford Loan borrowers.
     • Before signing into this website, you’ll need to have your Social Security Number, FAFSA PIN and the name and full address of 2 separate references, typically 2 relatives that live at separate addresses.  References should not be confused with endorsers/co-borrowers.  The student is the sole borrower and only the student signs the promissory note.
     • Sign into the ECSI website at www.ecsi.net/prom3P. Complete the 7 steps as outlined on their site.
     • Please allow 2-3 business days following the completion of your promissory note before the status of the accompanying requirements flag on myPurdue is updated.

  Timeframe from Acceptance to Crediting the Balance on Tuition or Housing or a Refund
  Accepted Perkins Loans will credit any outstanding balance within 2 business days of accepting it on your myPurdue account.  It will take approximately 1 week after accepting the Perkins Loan before any excess funds are refunded to the student. How long will it take to process my Perkins loan?

  General Information

  Source of Funds: Federal Government and Purdue University

  Loan Amounts Annual Maximum: Depends on financial need as calculated by the Division of Financial Aid.  Maximum award is usually $2,000. Up to $4,000 may be awarded on an exception basis.

  Loan Deadline: Perkins Loans may be processed if accepted within 45 days of the start of the fall semester.

  Aggregate Maximums: Undergraduate -- $20,000    Graduate -- $40,000

  Minimum Credit Hours Per Semester: Undergraduate -- 6   Graduate -- 4 

  Cosigner Required?: No.

  Rate of Interest: 5% Annually on declining balance

  Origination/Insurance Fees: None.

  Repayment: $40 minimum monthly payment.  Larger amount may be required, if necessary, to repay loan within time limit.

  Early Repayment Penalty: None.

  Maximum Repayment Period: 10 years.

  Consequences of Delinquency (on Defaulted Loan made by Purdue): Account will be listed with a collection agency.  Report will be made to a credit bureau.  Readmission to Purdue University will be denied and official transcripts withheld.  All further aid at Purdue University will be denied to student.  Legal action will be taken on extended default.

  Borrower's Benefits

  Interest Benefits: Borrower pays no interest while enrolled in school at least half time or during the grace period after leaving school.

  Grace Period: The nine-month period from the date student ceases half-time enrollment status. No interest accrues during grace period. No payments due, but voluntary payments may be made to reduce interest after grace period.

  Deferred Payment Provisions: Applications obtained and deferments granted through Educational Computer Systems, Inc. (ECSI). Borrowers should seek detailed information at www.ecsi.net.

  Cancellation Provisions:  The loan may be cancelled under the following conditions: 1) death of borrower, 2) total disability of borrower, 3) certain types of military service (contact ECSI for details), 4) obtain employment in a qualifying teaching service, 5) certain types of employment service (contact ECSI).

  Borrower's Responsibilities

  Entrance/Exit Interview: Handled through Educational Computer Systems, Inc. (ECSI).  Report to ECSI prior to dropping below half-time status, withdrawing, completing the Exit Interview obligation.

  Notification of Change of Name and/or Address: Notify Educational Computer Systems, Inc., 181 Montour Run Road, Coraopolis, PA 15108; Phone 1-888-549-3274

  Eligible for Federal Direct Consolidation: Yes.