Perkins Loans
National Direct Student Loans(NDSL)
The Perkins Loan Program provides low-interest loans that can be given to students showing exceptional financial need to finance the costs of postsecondary education. Financial need is determined by the U.S. Department of Education, using a standard formula to evaluate the financial information reported by the student on the Free Application for Federal Student Aid (FAFSA). To find out if you might qualify for a Perkins Loan, please contact the MU Student Financial Aid Office.Repayment Information
Once you graduate, or if you cease to be enrolled at least half-time as a degree-seeking student, your Perkins Loan will go into a 9 month grace period. For example, if you graduate in May 2006, your grace period would start May 2006 and end in February 2007 (interest would begin accruing in February 2007). Your first payment would be due 3/1/2007. Your minimum monthly payment is $40 or the amount that will payoff your loan in 10 years. Perkins loans have an annual interest rate of 5% and interest is computed daily on the outstanding principal balance.
The status of each Perkins loan is reported monthly to a national credit bureau. If you are current on your loan payments you will establish a good credit history. If you become past due on your loan payments, the delinquency will be reported, which will damage your credit history.
Deferments
To qualify for a deferment you must be performing an activity that qualifies for deferment and your loan must be in current status (meaning no payments are past due). The deferments available are dependent on the Perkins Loan regulations in effect at the time your loan was disbursed. Perkins loans at MU are assigned a loan number beginning with “PERK” and ending with a two-digit number. This loan number indicates which regulations were in effect. Please see our deferment webpage to find out how to apply for deferments. All deferments have a 6 month post-deferment grace period.
Deferments available for all Perkins Loans:
Disability Rehabilitation Program - Enrolled in course of study that is part of a rehabilitation program for disabled individuals.
Economic Hardship - must meet qualifications regarding income and federal loan debt level. Also available to Peace Corp volunteers. 3 year limit.
Graduate/Post-Graduate Fellowship - Engaged in graduate fellowship program. May not be in a medical internship or residency.
Student - must be enrolled at least half-time in a degree-seeking program at an eligible institution
Unemployment - Unemployed but seeking full time employment. 3 year limit.
Deferment available for Perk11, 12, and 13 only:
*New* Military Deferment HERA – called to active duty in the U.S. military for a military operation, or for a national emergency as a result of terrorist activities. This deferment is effective July 1, 2006.
Deferments available for Perk01, 02, 05, and 10 only:
Active Military Duty/Peace Corp or Action agency volunteer - 3 year limit.
Internship/Residency - internship for professional recognition; residency. 2 year limit.
Mother of preschool children working for less than $1.00 over minimum wage - 1 year limit.
Temporary Total Disability or Caring for Disabled Dependent - 3 year limit.
Cancellations
Cancellation require a full year of employment or service. After each completed year, you may be eligible to have part of your loan cancelled. The percentage cancelled each year depends on the type of employment or service you are in. Please contact our office if you think you qualify for a cancellation.
Military Service in area of hostility - the area of hostility is determined by the Defense Department's schedule of pay. 12.5% cancellation of original principal each year. Max 50% cancellation.
Peace Corp or Action agency volunteer - 15% cancellation of original prinicpal 1st and 2nd years of service, 20% for the 3rd and 4th years. Max 70% cancellation.
Headstart - must be in an education position. 15% cancellation each year up to 100% cancellation.
The following have cancellation rates of 15% of original principal for the 1st and 2nd year employment or service, 20% for the 3rd and 4th years, 30% for the 5th year:
Teachers low income school, handicapped, special education, shortage area.
Law enforcement corrections officer - includes attorneys proscuting criminal cases. Does not include administrative or civil lawyers, or defense attorneys.
Working with high-risk, low income children
Early intervention services for infants and toddlers
Nurse or Medical Technican - must be providing health care directly to patients
The following have 100% cancellation:
Death of the borrower - certified copy of the death certificate is required.
Total and permanent disability - borrower is unable to work and earn money because of an impairment that is expected to continue indefinitely or result in death. Physician certification and documentation is required.