FEDERAL PERKINS LOAN PROGRAM TO END (UPDATE)
New Federal Perkins Program regulations were made law on December 18, 2015. The new regulations limit the program to be available only up to the 2017-2018 academic year for undergraduate students (and only those students who meet new criteria), and only up to the 2016-2017 academic year for graduate students (and only those students who meet certain criteria). The new regulations now require additional disclosures to be made with each Perkins Loan disbursement. The new criteria for undergraduate students will include a requirement that Direct Loans be awarded first, and for graduate students criteria includes the receipt of a Perkins disbursement prior to October 1, 2015 as well as continuation in the same program of study. Details mentioned here are not all-inclusive, and interpretation of the new regulations are still being made. We will update the website as we learn more about the new regulations.
Financial Aid News: FEDERAL PERKINS LOAN PROGRAM TO END
Barring any last minute action by Congress, the Federal Perkins loan program is scheduled to end on 9/30/15. The following is a summary of what will be happening and who will be impacted if the Federal Perkins loan program ends as scheduled.
We regret that due to the short window of time prior to the end of the Perkins program, no exceptions will be given to these deadlines.
All new borrowers who successfully complete the above criteria, and meet all other eligibility criteria, will have the 2015 fall semester portion of their Federal Perkins loan disburse directly to their Tulane Accounts Receivable account prior to 9/30/15 AND any scheduled 2016 spring semester disbursement will be able to disburse in January 2016 (assuming all eligibility criteria is still fully being met).
We regret that for all new borrowers, federal regulations mandate that your Federal Perkins loan for the current 2015-2016 academic year will unfortunately be your last. Current law prohibits any new borrower from receiving future Perkins loan funds beyond the current academic year.
At this time we are unaware of any new identified source of funding that might be able to replace the future loss of Perkins loan funds. Current alternative funding options include the use of loan programs such as the Federal PLUS loan program (for parents of dependent undergraduates); or the Grad PLUS loan program (for graduate & professional students); or non-federal private alternative educational loan programs. If you have questions about the Federal Perkins loan program, then please contact our office.
Federal Perkins Loans are low interest (five percent during repayment, which begins nine months after the borrower is no longer enrolled in school at least half-time) federal loans offered to eligible students with financial need. Interest on the Federal Perkins Loan does not accrue before repayment begins. The Federal Perkins Loan program is a campus-based program, which means that the school is the lender. Although Tulane is the holder of your loan, all billing and servicing of your loan is coordinated through ACS Education Services. However, students may contact the Tulane Student Loan Office (504.865.5366) with any questions.
Annual and Aggregate Loan Limits
Depending on when a student applies, their level of need, and the funding level of the program:
The aggregate loan limit for undergraduate students is $27,500. The aggregate loan limit for graduate students is $60,000 (including any Federal Perkins Loans borrowed as an undergraduate).
Receiving the Perkins Loan
Tulane will credit the student's account with the Perkins Loan funds once the student has electronically signed or turned in a signed copy of their Perkins Master Promissory Note. Generally, students receive a the loan funds in two payments (one each semester).
Signing the Promissory Note
Students who borrow under the Federal Perkins Loan program must sign their master promissory note. Please wait until you receive an email notification that your promissory note is available for your signature before attempting to sign onto the following website (through which the promissory note is available after completion of the entrance interview only if it has already been prepared specifically for you): http://www.fc.campusoncall.com/cgi-bin/home.pl?campus=Tulane
Repayment of the Perkins Loan
Once a student graduates, leaves school, or drops below half-time enrollment, the student will have nine months before s/he begins repayment. This is called the "grace period". During the grace period, students will not have to make any payments on the outstanding principal.
Page last modified on January 11, 2016.
University Financial Aid, New Orleans, LA 70118 504-865-5723 firstname.lastname@example.org