shadow_tr

 


Federal Perkins Loan

POSTED 02/18/16
FEDERAL PERKINS LOAN PROGRAM TO END (UPDATE)
New Federal Perkins Program regulations were made law on December 18, 2015.  A link to guidance from the Department of Education regarding the regulations may be found at the bottom of the Federal Perkins Loan Disclosure link in the next sentence.  Disclosures regarding any new Federal Perkins Loan made after October 1, 2015 may be found on this link for FEDERAL PERKINS LOAN DISCLOSURE.


POSTED 01/11/16
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.


POSTED 09/01/15
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. 

  • 1. NEVER AWARDED A PERKINS LOAN AT TULANE: If you have never been awarded a Federal Perkins loan while previously or currently enrolled at Tulane, then the window is now closed as no new Perkins loans are being offered at this time to those who have never received Perkins. 

  • 2. NEW BORROWERS: Students are defined as new borrowers if they are currently enrolled at Tulane in a new program of study (defined as either a new degree/certificate program AND/OR a new major) who did NOT receive a disbursement of Perkins loan funds for the EXACT SAME program of study at Tulane prior to 6/30/15, yet who have been awarded a Perkins loan for the current 2015-2016 academic year. If you are a new Perkins borrower, then you MUST successfully complete these two requirements prior to the specified deadlines: 
    • a. By 11:59PM on 9/15/15, you MUST accept your 2015-2016 Federal Perkins Loan award (via the secure Tulane Gibson portal)! The Federal Perkins loan for all new borrowers who fail to meet this deadline will have their 2015-2016 Perkins loan award cancelled. 
    • b. By 11:59PM on 9/28/15, you MUST have completed the Federal Perkins Master Promissory Note (MPN). If you previously completed the Perkins MPN and received Perkins loan funds for a different program of study at Tulane during the past 9 years, then you have already successfully completed this necessary MPN. Otherwise, some new borrowers will be able to complete the MPN process on-line, while others may be required to print out the MPN and directly return the fully completed Perkins MPN to the financial aid office prior to the aforementioned deadline. This means that any printed Perkins MPN MUST be received at our office by 5PM on 9/28/15. The Federal Perkins loan for all new borrowers who fail to meet this deadline will have their 2015-2016 Perkins loan award cancelled, including if receipt of a completed Perkins MPN is delayed due to mailing or for other reasons. 

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.

  • 3. OLD BORROWERS: Students are defined as old borrowers if they are currently enrolled at Tulane in the EXACT SAME program of study (defined as the exact same degree/certificate program AND major) for which the student received a disbursement of Perkins loan funds at Tulane prior to 6/30/15. All students meeting the definition of an old borrower will be eligible for Perkins loan “grandfathering” provisions as established by federal regulation. This means that for the current 2015-2016 academic year, and all future academic years that you remain in the EXACT SAME program of study at Tulane, you will be eligible to receive Federal Perkins loan funds, assuming you fully meet all other eligibility criteria. The deadline for accepting a Perkins loan is prior to the end of your period of enrollment for which it is offered.

    Old borrowers represent the only student population who will remain possibly eligible to receive Federal Perkins loan funds in the future, assuming that the EXACT SAME program of study is maintained. Current law requires that future Federal Perkins loan awards (beyond the current 2015-2016 academic year) be made only if a student still exhibits financial need AFTER all other need-based aid has been awarded. 

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. 



General Information
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:

  • Undergraduate students can borrow up to $5,500 for each year of undergraduate study
  • Graduate students can borrow up to $8,000 for each year of graduate or professional study

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  February 18, 2016.

Citation information:

Page accessed: Monday, May 02, 2016
Page URL: http://tulane.edu/financialaid/loans/perkins.cfm

University Financial Aid, New Orleans, LA 70118 504-865-5723 finaid@tulane.edu