Federal Perkins Loan Request Form - The College Of Wooster Page 2

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THE FEDERAL PERKINS LOAN PROGRAM AT WOOSTER
The Federal Perkins Loan Program at Wooster offers loans to students “with exceptional financial need”
under very favorable terms. Federal Perkins Loans:
Have no guarantee or origination fee [the entire amount you borrow is credited to your account]
Are interest-free while you are enrolled at least half-time and during grace periods
Do not have to be repaid until you cease to study half-time or more
Have a fixed simple interest rate of 5%
Offer opportunities for loan cancellation (see below for examples)
You may ask us to cancel your loan, or any portion of it, at any time before the end of the academic
year. Simply direct your request to us by letter, fax, or email. Your next monthly statement of account
from the business office will reflect your altered loan amount.
The program is based on a revolving loan fund. Over several years the federal government and the
College provided capital contributions to create the fund. The College is the lender—the holder of
promissory notes—and repayment is made to a servicing agent under contract to us.
The master promissory note (which you sign once for all of your Federal Perkins Loans at Wooster) and
annual disclosure statements contain more detailed information about repayment and the annual
disclosure statement provides contact information for the Perkins Loan officer at the college and for our
servicing agent. As previous borrowers repay their loans, those dollars become available to make new
loans to current students.
The maximum a student may borrow per year is $5,500—within the limits of demonstrated financial need
and other financial aid—but not always are sufficient funds available to offer loans at the maximum
amount. The aggregate maximum an undergraduate student may borrow is $27,500. Your outstanding
loan balance is reported at least once annually to a national credit bureau.
Borrowing a Federal Perkins Loan is a serious financial responsibility. Signing the master
promissory note obligates you to repay the loan, thus making funds available to future generations of
Wooster students. You have an initial grace period of nine consecutive months after dropping below
half-time enrollment before beginning to repay the loan and assume obligation for interest on it. You
may make prepayments at any time without penalty.
The loan must be repaid within ten years, with provision for forbearance or deferment for reasons of
service in the military or Peace Corps, financial hardship, poor health, etc. The minimum monthly
payment is $40. Cancellation of all or part of the loan is offered to borrowers employed in certain service
professions, including:
teachers in schools serving low-income families, or in fields of critical expertise (mathematics,
foreign languages, etc.), or in head start programs;
nurses or medical technicians;
law enforcement or corrections officers;
qualified professional providers of early intervention services.
The Department of Defense has a program for repayment of loans on the basis of specified military
service. For more information about repayment and cancellation provisions visit
If you fail to make an installment payment when due, or to comply with other terms of the promissory
note or written repayment agreement, your loan is in default. Our servicing agent will ask you to submit
the payment(s) due or to request deferment, postponement, or cancellation of the loan. The agent may
assess late charges and collection and litigation costs. If you do not respond to a final demand notice, the
will
agent
report the default to a national credit bureau, with negative consequences to your credit rating.
If you have difficulty repaying your Perkins Loan, please stay in contact with the loan servicer to avoid
these consequences.

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