Federal Perkins Loan Summary

Federal Perkins Loan

The Federal Perkins Loan Program provides low-interest loans to students with financial need to help pay their costs of postsecondary education. The Federal Perkins Loan is a campus-based, federally funded loan. UCI is the lender.

Loan limits:
Undergraduate - $3,000 per year to a $15,000 maximum
Graduate - $5,000 per year to a $30,000 maximum

Total origination or insurance fee: None

Interest rate: 5 percent per year

Prepayment: No penalty for early repayment

Initial grace period: 9 months

Repayment period begins: Nine months after leaving UCI

Repayment period: Up to ten years

Minimum payment: $120 per quarter
(Loans received before 10/1/92: $90 per quarter)

Credit reporting: Reported to three national credit bureaus: Equifax, Experian, and TransUnion

Late charges: $6 per quarter

Late charges are assessed for failure to make timely payment of all or any part of a scheduled installment or to submit appropriate deferment requests on time.

Deferments: Upon approval of properly documented written requests, borrowers may defer making scheduled installments and interest will not accrue during the following periods:

Student Deferment
Enrollment and attendance as a regular student in at least a half-time course of study at an eligible school.

Enrollment and attendance as a regular student in an approved graduate fellowship program.

Engagement in approved graduate or post-graduate fellowship-supported study outside the U.S.

Enrollment and attendance in an approved rehabilitation training program for disabled individuals.

Public Service
Engagement in public service that qualifies for full or partial loan cancellation.

Unemployment
For a period, not to exceed 3 years, when a borrower is seeking but unable to find full-time employment.

Economic Hardship
For a period, not to exceed 3 years, when a borrower is experiencing an economic hardship as determined by UCI.

Post-deferment Grace Periods
Borrowers may continue to defer making scheduled installment payments and interest does not accrue for a six-month period immediately following an approved deferment period.

Forbearance: Upon properly documented written request, borrowers may be entitled to forbearance of principal payments or principal and interest payments under certain special circumstances, such as excessive Title IV debt burden, authorized national military mobilization or other national emergency, AmeriCorps service, or disability. Forbearance is renewable at intervals up to 12 months. Forbearance may not exceed a total of three years. Interest accrues during forbearance periods.

Cancellations: Upon approval of properly documented written requests, borrowers are entitled to cancellation of portions of the original principal loan amount for performing qualifying service in the following areas after the loan is received:

Teaching
A full-time teacher in certain designated elementary or secondary schools with high concentrations of students from low-income families.

A full-time special education teacher in a public or nonprofit elementary or secondary school system.

A full-time teacher in a public or other nonprofit elementary or secondary school system, who teaches mathematics, science, bilingual education, or any other field or expertise that is determined by the State Department of Education to have a shortage of qualified teachers in that State.

Teacher cancellation rates for each completed and approved year of service:
First year: 15% of the original principal loan amount
Second year: 15% of the original principal loan amount
Third year: 20% of the original loan amount
Forth year: 20% of the original loan amount
Fifth year: 30% of the original loan amount
Maximum cancellation: 100% of the original loan amount

Early Intervention Services
A full-time qualified professional provider of early intervention services to infants and toddlers with disabilities in a public or nonprofit program under public supervision by a lead agency as authorized by section 672(2) of the Individuals with Disabilities Education Act.

Cancellation rates for each completed and approved year of early intervention service:
First year: 15% of the original principal loan amount
Second year: 15% of the original principal loan amount
Third year: 20% of the original loan amount
Forth year: 20% of the original loan amount
Fifth year: 30% of the original loan amount
Maximum cancellation: 100% of the original loan amount

Law Enforcement
A full-time law enforcement officer for an eligible local, State, or Federal law enforcement agency.

Cancellation rates for each completed and approved year of law enforcement service:
First year: 15% of the original principal loan amount
Second year: 15% of the original principal loan amount
Third year: 20% of the original loan amount
Forth year: 20% of the original loan amount
Fifth year: 30% of the original loan amount
Maximum cancellation: 100% of the original loan amount

Corrections Officer
A full-time corrections officer for an eligible local, State, or Federal corrections agency.

Cancellation rates for each completed and approved year of service as a corrections officer:
First year: 15% of the original principal loan amount
Second year: 15% of the original principal loan amount
Third year: 20% of the original loan amount
Forth year: 20% of the original loan amount
Fifth year: 30% of the original loan amount
Maximum cancellation: 100% of the original loan amount

Nurse
A full-time nurse providing health care services.

Cancellation rates for each completed and approved year of nursing service:
First year: 15% of the original principal loan amount
Second year: 15% of the original principal loan amount
Third year: 20% of the original loan amount
Forth year: 20% of the original loan amount
Fifth year: 30% of the original loan amount
Maximum cancellation: 100% of the original loan amount

Medical Technician
A full-time medical technician providing health care services.

Cancellation rates for each completed and approved year of service as a medical technician:
First year: 15% of the original principal loan amount
Second year: 15% of the original principal loan amount
Third year: 20% of the original loan amount
Forth year: 20% of the original loan amount
Fifth year: 30% of the original loan amount
Maximum cancellation: 100% of the original loan amount

Child or Family Service Agency
A full-time employee of an eligible public or nonprofit child or family service agency who provides or supervises the provision of services to high-risk children who are from low-income communities and the families of such children.

Child or family service agency cancellation rates for each completed and approved year of service:
First year: 15% of the original principal loan amount
Second year: 15% of the original principal loan amount
Third year: 20% of the original loan amount
Forth year: 20% of the original loan amount
Fifth year: 30% of the original loan amount
Maximum cancellation: 100% of the original loan amount

Head Start
A full-time staff member in the educational component of a Head Start program that is operated for a period comparable to a full school year and which pays a salary comparable to an employee of the local educational agency.

Cancellation rates for each completed and approved year of Head Start service:
Each year: 15% of the original principal loan amount
Maximum cancellation: 100% of the original loan amount

Military Service
A member of the Armed Forces of the United States in an area of hostilities that qualifies for special pay under section 310 of Title 37 of the United States Code.

Cancellation rates for each completed and approved year of military service:
Each year: 12 1/2 % of the original principal loan amount
Maximum cancellation: 50% of the original loan amount

Volunteer Service
A volunteer under the Peace Corps Act or a volunteer under the Domestic Volunteer Service Act of 1973 (ACTION programs).

Cancellation rates for each completed and approved year of volunteer service:
Each year: 15% of the original principal loan amount
Maximum cancellation: 70% of the original loan amount

Death cancellation: The total amount owed on the loan is canceled in the event of the death of the borrower.

Permanent and total disability: The total amount owed on the loan is canceled if the borrower becomes permanently and totally disabled after receiving the loan.

Default: Failure to make an installment payment when it is due or to comply with the other terms of the promissory note may result in the following:

Rehabilitation:  The Higher Education Amendments of 1998 created a Loan Rehabilitation program for Perkins Loans.  Under this program you have the opportunity to request the rehabilitation of a defaulted loan through Loan Services.  Rehabilitation means that, after making 12 on-time, consecutive monthly payments of an amount agreed to by UCI, your loan will be returned to regular payment status, the default will be removed from your credit history, and you will be again eligible to borrow Title IV funds.  You can rehabilitate a defaulted Perkins loan only once.

Department of Education Ombudsman:  If you are unable to resolve a dispute with UCI concerning the terms of your student loan, you may contact the Department of Education's Ombudsman at (877) 557-2575, or write to: 

Office of the Ombudsman
Student Financial Assistance
U.S. Department of Education
Rm. 3012, ROB #3,
7th and D Streets, SW
Washington, DC  20202

 

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