Federal Perkins Loan
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Federal Perkins Loan


What is a Federal Perkins Loan?

A Federal Perkins Loan is a low-interest (5 percent) loan for both undergraduate and graduate students with exceptional financial need. Northeastern Illinois University is your lender. The loan is made with government funds with a share contributed by Northeastern Illinois University. You must repay this loan to Northeastern Illinois University.


Is there a charge for this loan?

A Perkins Loan borrower is not charged any fees. However, if you skip a payment, make a payment late, filing deferment or cancellation late, or make less than a required monthly payment, you may have to pay a late charge plus any collection costs. Late charges will continue until your payments are current.


When do I pay back this loan?

If graduate, leave school, or drop below half-time status, you have nine months before you must begin repayment. This is called a grace period. At the end of your grace period, you must begin repaying your loan.


Where do I pay my loan?

You will pay your loan to    ECSI Northeastern Illinois University
                                        181 Montour Road
                                        Coraopolis, PA 15108-9408
                                        Fax: 412-494-5626


Also, you can look at your account status, review your account, have answers to your questions about your account or Federal Perkins Loan programs at www.ecsi.net. We are at Student Loan Department encourage you to go to this web page for the information about the Federal Perkins Loan that you have had or about to receive.


Default: Failure to repay a loan according to the terms agreed to when you signed a Promissory note. Default also may result from failure to submit requests for deferment or cancellation on time. The consequences of default are severe.


Borrower Responsibilities

When you take out a student loan, you have certain responsibilities. Here are a few of them:


When you sign a promissory note, you're agreeing to repay the loan according to the terms of the note. The note is a binding legal document and states that, except in cases of discharge, you must repay the loan--even if you don't complete your education (unless you were unable to complete your program of study because the school closed); aren't able to get a job after you complete the program; or are dissatisfied with, or don't receive, the education you paid for. Think about what this obligation means before you take out a loan. If you don't repay your loan on time or according to the terms in your promissory note, you may go into default, which has very serious consequences.


You must make payments on your loan even if you don't receive a bill or repayment notice. Billing statements (or coupon books) are sent to you as a convenience, but you're obligated to make payments even if you don't receive any reminders.


If you apply for a deferment or forbearance or cancellation, you must continue to make payments until you are notified that the request has been granted.

If you don't, you may end up in default. You should keep a copy of any request form you submit, and you should document all contacts with the organization that holds your loan. You must notify the Student Loan representatives at Northeastern Illinois University  or by an agency that the school assigns to service the loan when you graduate; withdraw from school, or drop below half-time status; change your name, address, or Social Security Number; or transfer to another school. Regardless of the type of loan you borrow, you must receive entrance interview before you're given your first loan disbursement, and you must receive exit interview before you leave school. These interview sessions will be administered by Student Loan Department representatives and will provide you with important information about your loan.


If you default on your loan, Northeastern Illinois University or agency that holds your loan, the state, and the federal government may all take action to recover the money, including notifying national credit bureaus of your default. This may affect your credit rating for a long time. For example, you may find it very difficult to borrow from a bank to buy a car or a house.


In addition, if you default, the agency holding your loan may ask your employer to deduct payments from your paycheck. Also, you may be liable for expenses incurred in collecting the loan. If you decide to return to school, you're not entitled to receive any more federal student aid. The U.S. Department of Education may ask the Internal Revenue Service to withhold your income tax refund, and apply it toward the amount you owe.


Borrower Rights

You have certain rights as a borrower. Listed below are some of them. Before your school makes your first loan disbursement, you'll receive the following information about your loan from Student LoansDepartment:



the full amount of the loan.


the interest rate.


when you must start repaying the loan.


an explanation of default and its consequences.


an explanation of available options for consolidating or refinancing your loan.


a statement that you can prepay your loan at any time without penalty.


Before you leave school, you'll receive the following information about your loan from Student Loan Department:


The amount of your total debt (principal and estimated interest), what your interest rate is, and the total interest charges on your loan.


The fees you might be charged during the repayment period, such as late charges and collection or litigation costs if you're delinquent or in default.


An explanation of available options for consolidating or refinancing your loan.


A statement that you can prepay your loan without penalty at any time.