skip to main content columnskip to left navigationskip to horizontal navigation

Office of Financial Aid

Division of Student Affairs

Federal Perkins Loan Disclosure Statement

FEDERAL PERKINS LOAN PROGRAM IS ENDING SEPTEMBER 30, 2017
No additional Federal Perkins Loans will be available after that time

Federal Perkins Loan Program Extension Act of 2015

The Federal Perkins Loan Program Extension Act of 2015 was signed into law on December 18, 2015.  The Extension Act authorizes institutions of higher education to award new Perkins Loans to Eligible Students.  Under this Law, schools may make Perkins Loans through September 30, 2017 to an: 

  • Eligible current undergraduate student who has an outstanding balance on a Perkins loan made by ETSU if the institution has awarded the student all Direct Subsidized Loan aid for which the student is eligible and
  • Eligible new undergraduate who does not have an outstanding balance on a Perkins Loan made by ETSU if the institution has awarded the student all Direct Subsidized and Unsubsidized Loan aid for which the student is eligible.
  • Eligible graduate student who received a Perkins Loan before October 1, 2015. The graduate student must have received their most recent Perkins Loan from ETSU for enrollment in an academic program at the institution and
  • Eligible graduate student received a disbursement after June 30, 2016 and before October 1, 2016 for the 2016-2017 award year, the student may receive any subsequent disbursements through June 30, 2017. 

Direct Loan and Federal Perkins Loan Comparison --  Perkins Loan interest rate is a fixed 5%; the interest rate for Direct Loans is determined annually for new loans that are made between July 1 of one year and June 30 of the following year.  Each loan will have a fixed interest rate for the life of the loan.  View the latest interest rate information at StudentAid.gov/interest. 

See the applicable chart below to compare different loan types for which you may qualify: 

Undergraduate Students

 
Federal Direct Subsidized Loan*
Federal Direct Unsubsidized Loan
Perkins Loan
Federal Direct PLUS Loan(Parent)***

Maximum Award for the 2016-2017 Aid Year

$5,500

$7,000
Independent

$2,000
Dependent

$5,500

Dependent Only:

Max determined based on Cost of Attendance and Parent’s Credit Worthiness

Maximum Cumulative Award**

$23,000

$8,000
Independent 

$34,500
Dependent

$27,500

Dependent Only:

Max determined based on Cost of Attendance and Parent’s Credit Worthiness

Interest Rates (Fixed)

3.76%

3.76%

5%

6.31%

Interest Accrues

Deferred until end of Grace Period

Accrues if not paid

Deferred until end of Grace Period

Accrues if not paid

Repayment Grace Period

(After graduating/leaving school/ dropping below half time enrollment)

 6 Months
6 Months 
 9 Months
 Must apply to Direct Lending for approval for deferred payments

Processing Fee

1.068%
1.068%
0%
4.27%

*Eligibility for Subsidized Direct Loans based on need based eligibility.  If the student does not qualify for Subsidized Direct Loans this amount can be reallocated to Unsubsidized Direct Loan funding. 
** Cumulative Subsidized/Unsubsidized totals cannot exceed $57,500 for independent undergraduate students. 
**Cumulative Subsidized/Unsubsidized totals cannot exceed $31,000 for dependent undergraduate students.
***Independent Undergraduates do NOT qualify for PLUS Loans.  

Please note:  An undergraduate student who was awarded a Direct Subsidized Loan and/or a Direct Unsubsidized Loan can decline one or both of the loans (or request a lesser amount).  However, the student’s Direct Loan eligibility amounts must be included in the calculation of the undergraduate student’s Perkins Loan amount, regardless of whether they actually borrow that full amount. 

Graduate Students

 
Federal Direct Unsubsidized loan
Perkins Loan
Federal Direct PLUS Loan(Grad/Professional)
Maximum Award for Aid Year
$20,500
$8,000
Max is determined based on Cost of Attendance Budget and Borrower's credit worthiness

Maximum cumulative Award

(including amounts received during undergraduate)
$138,500
$60,000
Max is determined based on Cost of Attendance Budget and Borrower's credit worthiness

Interest Rates

(Fixed)
5.31%
5%
6.31%
Interest Accrues
Accrues if not paid
Deferred until end of Grace Period
Accrues if not 4\id

Repayment Grace Period

(After graduating/leaving school/ dropping below half time enrollment)
6 Months
9 Months
6 Months
Processing Fee
1.068%
0%
4.27%

*Graduate Students do NOT qualify for Subsidized Direct Loans.  

Use of Loan funds

You may only use financial aid funds to pay educational expenses.  If you accept this loan your eligibility for other student assistance may be effected. Acceptance of this loan will impact the amount of room in your Cost of Attendance Budget (COA).  This may prevent ETSU from awarding or increasing other sources of financial aid including but not limited to Alternative Student Loans, Parent PLUS Loans, or other applicable awards that may not fit within the student’s COA.

Benefits of the Federal Perkins Loan include deferments and options for loan consolidation:   

  • Consolidation -- A federal Perkins Loan may be consolidated into a Direct Consolidation Loan. Consolidating your federal education loans can simplify your payments, however it can also result in the loss of some benefits from the Perkins Loan. Examples of these pros and cons are listed in the chart below:

Advantages of Consolidation

Disadvantages of Consolidation

Combine multiple loans into one

A longer repayment period may result in more payments and more interest

Can lower monthly payments
Possible loss of some deferment and forbearance benefits
Up to 30 years to repay
Possible loss of some Loan Forgiveness benefits.
Fixed interest rate
Possible loss of grace period.
Access to forgiveness programs such as
Public Student Loan Forgiveness (PSLF)
and Teacher Loan Forgiveness (TLF). 
Possible loss of interest subsidy.
Access to alternative Income Driven
Repayment plans such as Pay As You Earn.
Possible increase in the interest rate. 

 

Should you require additional information regarding your Direct Loans or if you wish to consolidate your Direct Loans, please contact your servicer for information. 

  • Loan Forgiveness -- You may be entitled to have up to 100% of the original principal loan amount forgiven on your Perkins Loan if you perform qualifying service in an eligible profession. Refer to your federal Perkins MPN for eligibility and details. 

Repayment

If you have been offered a Federal Perkins Loan and accepted the award, your accepted award amount on Goldlink is considered the principal amount of the loan.  

All payments and related correspondence should be sent to Heartland ECSI. To log into your Perkins Loan repayment center or to contact ECSI please visit heartlandecsi.com or you may contact them by phone at (888)549-3274. 

By accepting the award you promise to repay the full loan amount with all interest fees generally within ten (10) years.  The minimum monthly repayment of this loan can be $40.  Maximum repayment could vary depending on the amount borrowed.   You may prepay this loan, make loan payments before they are required, or in amounts that are greater than required, at any time without penalty.  

All repayment and forgiveness benefits available to Direct Loan Borrowers are not inherently available to Perkins Loan Borrowers.  Borrowers will be informed that they have reached the maximum annual Direct Subsidized borrowing limit or Direct Subsidized/Unsubsidized borrowing limit when they complete the Free Application for Federal Financial Aid (FAFSA) and receive their Student Aid Report (SAR).  They will also receive an email from the ETSU Office of Financial Aid when they have reached the maximum borrowing limit.  Students may see all the Direct Loan forgiveness options at:  https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/charts.

Deferment

In some circumstances the loan may be deferred for student status, economic hardship, unemployment, military service, or cancellation of service.  A Department of Defense repayment program may be available for specific military service. 

Credit Bureau Notification

Your loan will be reported to one or more national credit bureaus at least annually if not more frequently as determined by ECSI.  

Default

Your loan may be considered in default if terms and conditions of the loan note are not followed. Defaulted loans may be subject to late fees, accelerated (full balance due and payable), referred to a collection agency, and/or litigated. 

Collection Fees

A late payment fee may be charged for each individual scheduled payment that is missed.  If your delinquent account is referred to collections, a collection agency or an attorney for litigation, you may be responsible to repay 100% of the cost to collect the loan including collection fees and litigation cost.  This may include a percentage based collection fee system. 

Alternative Repayment Options

The “Terms and Conditions” of your Federal Perkins Loan Master Promissory Note (MPN) provide you with additional detailed information regarding your rights, responsibilities and benefits of a Federal Perkins Loan.  Should you require additional information regarding any of the information in your Perkins MPN or if you would like additional information regarding any alternative repayment options for your Perkins Loan please contact ECSI at https://borrower.ecsi.net/ for assistance.  

Please keep this disclosure for your records.  Do not return it to ETSU.

 

 

 

icon for left menu icon for right menu