REPAYMENT OPTIONS

The minimum monthly payment is $40.00 if the borrower received a Perkins Loan for the first time on or after October 1, 1992. If a borrower received a Perkins Loan prior to October 1, 1992, the minimum monthly payment is $30.00. The minimum monthly payment may increase depending upon the total amount borrowed from the Perkins Loan Program.

DEFERMENT
A deferment extends the repayment period for a specified period of time because the borrower has fulfilled certain regulatory requirements. Payments are not required and interest usually does not accrue during periods of deferment.

The following deferments are currently in effect:

Student deferment. Must be enrolled at least halftime. (no limit)
Pre-cancellation period of service. (5-year limit)
Seeking and unable to find full-time employment. (3-year limit)
Economic hardship. (3-year limit)
Military. (3-year limit)

When a borrower is granted a deferment, the borrower will receive a six (6) month post-deferment grace period. Therefore, payments will not resume until six months after the expiration of the deferment period.

Deferment Forms

FORBEARANCE
Forbearance is a temporary postponement of payments, an extension of time allowed for making payments, or making smaller monthly payments.

Forbearance benefits are limited to up to a maximum of three (3) years or 36 months.The borrower may qualify for forbearance of loan payments if the borrower’s total monthly payments on all Title IV loans equals or exceeds 20% of his or her gross monthly income. The borrower may also qualify due to poor health or other acceptable reasons or if the U.S. Department of Education authorizes a period of forbearance due to a national military mobilization or other national emergency. Interest continues to accrue during the forbearance period and is payable either monthly or in a lump sum at the end of the forbearance period. A forbearance is granted in intervals of 6, 9 or 12-month increments.

Forbearance Forms

CONSOLIDATION
If you have outstanding student loan debt, you may be eligible to consolidate all your loans. Loans eligible for consolidation include Federal Subsidized and Unsubsidized Stafford Loans, Federal Perkins/NDSL Loans, Health Professional Student Loans, and Federal Parent Loan for Undergraduate Students.

The advantages of consolidation:

1. You will have a lower monthly payment. By extending the repayment period, you can reduce your monthly payment. Lowering your monthly payments to fit your budget may help avoid late payments. You will have one monthly payment to one lender. If you have loans with more than one guarantor or bank, Loan Consolidation allows you to make one monthly payment instead of several minimum payments to different banks or lenders.
2. The interest rate is the weighted average of the loans consolidated rounded to the nearest whole percent.

The disadvantages of consolidation:

1. You will pay a higher total interest amount. By extending the repayment term of the loan, you will pay more interest over the life of your loan.
2. You will be making payments for a longer period of time. You may be paying the loan for up to 30 years depending on the total indebtedness of your loans. However, if at some point you are able to, you may repay the loan early with no penalties.

It is important to remember that once the Consolidation Loan is complete, it cannot be reversed. The reason for this is that the underlying loans have been paid off and no longer exist.