Perkins Information & Promissory Note

IF you have been awarded a Perkins Loan, you may download a Perkins Promissory Note and attach to your award letter when returning it to the Troy Financial Aid Office. The address is printed on the award letter. If you are looking for the MPN for the Stafford Loan Program, please link to the KHEAA web site from the Support Resources section of the main financial aid page.

The Perkins Loan Program (formerly NDSL) provides low-interest loans to help undergraduate and graduate students with exceptional financial need pay for their higher education. The general loan limits depend, in part, on the student’s year in school. Students attending school at least half-time do not begin repaying their loan until nine months after they graduate, leave school, or drop below half-time status. Less-than-half-time students may have a different grace period. Borrowers have up to 10 years to repay the loan. Troy University has limited access to Perkins Loan funds. Priority is given to students with the lowest EFC, determined by information provided on the Free Application for Federal Student Aid (FAFSA), who also receive Federal Pell Grants. There is no guarantee that every eligible student will receive a Perkins Loan, so it is important to apply early to have a better chance. Perkins Loans are based on the availability of funds at Troy University.

1. Stafford Loans: You will hear from the bank from whom you borrowed the loan, the secondary market, or the billing agent that bills for them. If you do not hear from someone regarding your loan within 60 days of leaving our school, call your lender. When you signed your promissory note you agreed to contact your lender when you leave school.
2. Federal Perkins Loan: You will hear from our current billing service, University Accounting Services, within 90 days of leaving our school. If you do not hear from them, please contact:

Consolidation Loans allow you to combine certain federal student loans. It allows you to make one monthly payment rather than multiple payments to various lenders. If you have Stafford Loans from several banks, you can consolidate through your banking lender or through Sallie Mae. If you have both Stafford Loans and a William D. Ford Direct Loan or if the private lenders do not offer the repayment plan you would like, you can consolidate through the federal government by calling the Direct loan Servicing Center at 1-800-848-0982. You can consolidate the Federal Perkins loans with either the Stafford Loans or the federal government. You can lose important deferment benefits through consolidation but benefit by have a lower payment overall and one place to send payments. Four repayment plans are offered. There is no charge for consolidating your loans.

For most students, a student loan is the first experience with credit. Student loans can be an excellent way to establish a good credit rating. Pay your student loan promptly each month. Frequent late payments constitute delinquency and may harm your credit history. Here are some tips on establishing good credit:

• Notify the necessary parties regarding change of address or name change. Stafford Loan changes should be referred to your lender, servicing agent or the secondary market.
• Send the payment due each month, even if you haven't received a bill. When you can, send extra payments to reduce your total interest.
• Always call the appropriate (lender, servicing agent, secondary market, direct loan servicing center or University Collections) if you have a question or problem.
• Never ignore correspondence or a payment request.

If you default on your NDSL or Federal Perkins Loan, you may rehabilitate your defaulted loan by requesting the rehabilitation and by making an on-time, monthly payment, as determined by the loan holder, each month for twelve consecutive months. If you successfully rehabilitate your defaulted NDSL or Federal Perkins Loan, you will again be subject to the terms and conditions and qualify for the benefits and privileges of your original promissory note and the default will be removed from your credit history. You can rehabilitate a defaulted NDSL or Federal Perkins Loan only once.

If you dispute the terms of your Stafford Loan or NDSL or Federal Perkins Loan in writing and the holder of your loan is unable to resolve the dispute, you may seek the assistance of the Federal Student Assistance Student Loan Ombudsman of the Department of Education. The Student Loan Ombudsman will review and attempt to informally resolve your dispute and may be reached at 1-877-557-2575. You must first have tried to resolve your dispute yourself.

1. You have a question about your student loan. Here are some tips for learning about your loan.
2. You have a problem with your student loan. Take steps to resolve it yourself.
3. Your efforts to resolve the problem yourself did not succeed. Prepare the materials you will need to get help from the Ombudsman's Office.
4. Contact the Ombudsman's Office for assistance.
5. Understand what you can expect to happen after you contact the Ombudsman.
6. Avoid having a problem in the future.