What you need to know!

When you took out a Federal Perkins Loan, you made a very serious legal agreement. You can find the content of that agreement on your promissory note. The most important part of it is that you agreed to repay your loan. If you received a Federal Perkins Loan while attending Drury University, there is some important information that you will want to be aware of:

Exit Counseling
Interest
Grace Period
Billing
Deferment
Forbearance
Cancellation
Default
Collection Agencies

Exit Counseling

If you graduate or drop below half-time registration status, and you have borrowed a Federal Perkins Loan, the federal government requires you must complete exit loan counseling. This exit counseling is designed to help you understand student loan terms as well as your rights and obligations as a student loan borrower.

Drury University Business Office offers exit counseling to students because we want you to enter the repayment phase of your Perkins loan with all of the information that you need to manage your account successfully.

The purpose of exit counseling is to:

• Explain your rights and obligations for repayment of your student loan.
• Discuss your repayment schedule and deferment options.
• Provide your need with your truth-in-lending statement. Which details the interest rate, amount borrowed and repayment schedule.

Federal regulations require that Drury University provide you with certain information regarding your rights and responsibilities as a federal loan borrower. In turn, you must provide us with certain information about your plans after you leave school (for example, your current address, your expected employer, two personal references, etc.).

Contact you can contact the Business Office at (417) 873-7342 or businessoffice@drury.edu to discuss your exit counseling for your Perkins Loan.

Interest

A Federal Perkins Loan will accrue interest from the date the loan enters payment until it is paid in full. Loans taken out after July 1, 1987 accrue interest at the rate of 5% per annum. Interest accrues against the principal only.

Grace Period

The grace period is a period of time where principal payments are not due and interest is not accruing against the loan. The Federal Perkins Loan allows for an initial grace period of nine (9) months. The period begins following your separation from Drury University. A separation occurs if you graduate (even though you may continue your education at Drury), transfer, take some time off school, or fall below half-time enrollment.

Example: You graduate in May 2008. The records will show that you separated from Drury in 5/08. Your 9-month grace period runs until 2/09. Interest begins to accrue in 3/09 and your first payment becomes due 3 months later on 6/1/09. Your payments will be quarterly; beginning on 6/1/09.

Billing

Drury University uses the billing service, University Accounting Service (located in Brookfield, WI), to manage our Federal Perkins Loans. You can access your account through the UAS website or contact them at 1-800-999-6227. You will receive quarterly statements from University Accounting Service. You can also contact UAS for deferment/cancellation and forbearance forms.

Deferment

The Federal Perkins Loan program provides for deferment benefits. A deferment allows you to put off paying your loan until a later date while certain conditions are met. During the period, interest does not accrue and payments are not due. There are many ways you can qualify for a deferment. Please consult your promissory note or contact University Accounting Service concerning your questions.

A deferment is a benefit; therefore, you must apply for it and receive subsequent approval. Failure to properly apply for deferment can disqualify you from future benefits and cause your loan to become in default.

Forbearance

Forbearance is a period of time when principal payments are not due but interest does accrue against the loan. There are several ways you qualify for forbearance. Please consult your promissory note or contact University Accounting Service with your questions.

Cancellation

The Federal Perkins Loan program provides for cancellation benefits. A cancellation accrues when a portion of the loan is forgiven due to certain terms and conditions are being met. Please consult your promissory note or contact University Accounting Service to see if you qualify for cancellation.

Default

Your loan is in default if any payment is not made when it is due.When a default occurs, you are not entitled to any additional Title IV Federal Financial Aid until it is cleared up. Additionally, a default could result in your entire loan being called due and payable along with all interest accrued. A default could disqualify you from being allowed to receive deferment, forbearance, or cancellations.

If you are past due on your loan, do not ignore the seriousness of this matter. Contact University Accounting Service, or the Business Office. We have several option available to help with you default and some may not require you to make a payment.

Collection Agencies

If Drury University must refer your Federal Perkins Perkins Loan to a collection agent for payment, your loan balance will increase with collection costs, attorney's fees, and court costs, all in accordance with the original contract.