7.7.4 Federal Perkins Loan

Policy

The University Collection Services/Federal Perkins Loan Department oversees administration and collection of all Federal Perkins Loans issued by Illinois State University. These loans can range in size from several hundred to several thousand dollars. Each borrower is obligated to repay the principal and the interest that accrues on the loan to Illinois State University.

Borrowers of the loan may be eligible and apply for the following entitlements:

• Forbearance.  In the case of an approved forbearance period, payments of principal and interest, or principal only may be postponed or reduced.  Interest continues to accrue while the loan is in forbearance.
• Deferment.  In the case of an approved determent period, borrowers are not required to make scheduled installment payments on their loan.  Interest does not accrue while the loan is in deferment.
• Cancellation.  In the case of cancellation, if the borrower meets the eligibility requirements, the institution may cancel up to 100 percent of the outstanding principal loan amount.

Information on eligibility and application requirements for forbearances, deferments and cancellations can be requested from the University Collection Services/Federal Perkins Loan Department at Illinois State University.

Forbearance, deferment or cancellation request forms may be found at:  http://www.ecsi.net/bwr/forms/aa-index.html.  Completed request and supporting documentation may be submitted by walk-in or emailing them to:   isuperkinsloan@ilstu.edu

At the end of each semester, the University Collection Services/Federal Perkins Loan Department holds exit interviews on campus to benefit borrowers in understanding their loan rights and responsibilities.