Financial Aid Business Services (FABS) - Federal Perkins Loan Exit Information

Federal Perkins Loan Repayment
(Exit Interview) Information

The following information explains your rights and obligations pertaining to the Federal Perkins/NDSL loans you have received from CSU, Chico. Upon your dropping below half-time student status or upon your exit from CSU, Chico you are obligated to contact Student Financial Services for an exit interview. Your promissory note and Truth-In-Lending (Disclosure) statement will show the loan type(s) you have and thereby which provisions apply to you.

I. Repayment Schedule -- Monthly
The actual repayment schedule established for your loan(s) will be shown on a Truth-In-Lending (Disclosure) statement. Repayment begins nine months after you cease to be at least a half-time student at CSU, Chico or at another approved institution of higher education. Ten years is the maximum repayment period allowed. Interest begins to accrue at the end of the grace period. Payments are due in our office by the payment due date or Penalty/Late Charges will be assessed.

In the event you receive or have received other Federal Perkins/National Direct Student Loans from one or more lending institutions, your monthly payments may be recomputed by each lending institution to achieve the lowest possible monthly payment amount.

All loan information is submitted to credit-reporting agencies. You may enhance your eligibility for other types of credit by adhering to the repayment schedule and to the other terms of your loan.

The U.S. Department of Education and other private lenders offer a consolidation program. Consolidation can lower your monthly repayment amount. However, if you consolidate your Perkins loan, you will lose service-based (teaching, nursing, etc.) cancellation privileges.

II. Deferment of Repayment
Principal need not be paid and interest will not accrue (in most cases) under circumstances qualifying for deferment. Review the information below to determine if deferments apply. Refer to your promissory note(s) for specific information on qualifying service.

III. Cancellation of Loan Principal and Interest
You may receive partial cancellation of principal and interest for each year of qualifying service in a variety of occupations. Refer to your promissory note(s) for specific information on qualifying service. Full cancellation is granted in the event of your death or documented permanent and total disability.

IV. Assessment of Penalty/Late Charges
If you fail to make timely payment of all or any part of a scheduled installment, or if you are eligible for deferment or cancellation of payment but fail to submit timely and satisfactory evidence thereof, you promise to pay the charge assessed against you by CSU, Chico. All late charges accrue based on costs incurred by the institution to effect collection. Late charges may not exceed twenty (20) percent of the monthly payment.

V. Computation of Interest
Simple interest will be computed on the unpaid principal balance.

VI. Accelerated Repayment
You are permitted to accelerate repayment of the whole or any part of your loan. No interest penalty will be assessed, you will pay only the interest accrued to date.

VII. Default
-- CSU, Chico may at its option, declare this loan to be in default and may demand immediate payment of the entire unpaid balance of the loan, including principal, interest, and penalty/late charges if scheduled payments are not made and/or verification of eligibility for deferment or cancellation is not filed in a timely manner. In addition to accrued interest and penalty/late charges, you will be liable for all collection costs incurred including , but not limited to, CSU, Chico costs, court costs, attorney's fees, collection agency fees, and debtor location service fees.
-- CSU, Chico must report loan default to the credit-reporting agency.
-- Cancellation and deferment benefits are not available for service performed after the date CSU, Chico accelerates the loan.
-- Failure to pay this obligation under the terms agreed upon will, in addition to other adverse consequences, preclude eligibility for additional student financial aid authorized under Title IV of the Higher Education Act of 1965, as amended, until arrangements have been made which are satisfactory to CSU, Chico or to the Secretary regarding the repayment of the loan. For unresolved disputes over loan terms, contact the U.S. Department of Education, Student Loan Ombudsman.

You are responsible, and any endorser is responsible, for promptly notifying Student Financial Services of any change in name, address, telephone number, or Social Security number.

Any questions regarding your Federal Perkins/National Direct Student Loan(s) should be directed to Student Financial Services, CSU, Chico.

DEFERMENT OF REPAYMENT
(principal need not be paid and interest does not accrue)

Deferments vary depending on loan date. Confirm eligibility by contacting a Collection Representative .

A. For an indefinite period while you are:

Attending an approved institution of higher education as at least a half-time student (at least six under- graduate units or at least four graduate units). Not applicable to medical internships or residencies.
Enrolled and in attendance as a regular student in a course of study that is part of a graduate fellowship program approved by the Secretary.
Engaged in graduate or postgraduate fellowship-supported study (such as a Fulbright grant) outside the United States, or
Enrolled and in attendance in a course of study that is part of a rehabilitation training program for disabled individuals.

B. For a period not to exceed two years while you are:

A member of the United States Armed Forces.
A Peace Corps volunteer.
A VISTA volunteer under the Domestic Volunteer Service Act of 1973.
A full-time volunteer in a tax-exempt organization performing services comparable
to services of Peace Corps/ACTION volunteers.
Temporarily totally disabled, as establisher by physician's affidavit.
Unable to secure employment because of caring for a disabled spouse.
Unable to secure employment because of caring for a disabled dependent.
An officer in the Commissioned Corps of the U.S. Public Health Service.
On active duty with the National Oceanic and Atmospheric Admin. Corps.
Seeking but unable to find full-time employment.
In circumstances which cause Student Financial Services to determine that
repayment will cause you economic hardship.

C. For a period not to exceed two years while you are:

Serving an internship, which is required for you to enter professional circumstances.
Serving an internship or residency program leading to a degree or certificate
awarded by an institution of higher education, hospital, or health care facility.

D. For an indefinite period while you are unable to make scheduled payments due to extraordinary circumstances (Interest continues to accrue under this provision.)

E. For a period not to exceed one year while you are entering the workforce as a mother with preschool age children who is being compensated at or below the minimum wage rate.

F. For a period not to exceed six months while you are neither employed nor enrolled in school (but had been enrolled within the previous six months) AND pregnant or caring for a newborn or newly adopted child.

CANCELLATION OF LOAN PRINCIPAL AND INTEREST
Applies to all loan types.

You may be entitled to partial loan cancellation for each year of service as a:

Full-time teacher in a Chapter I school that is listed in the United States
Department of Education's Directory of Designated Low Income Schools.
Full-time special education teacher.
Full-time professional provider of early intervention services.
Full-time teacher in field with shortage of teachers.
Full-time nurse/medical technician.
Full-time employee of a child or family service agency.
Full-time Head Start staff member.
Volunteer in service under (Peace Corps or VISTA).
Member of the military service in areas qualifying for special pay.
Law enforcement or corrections officer.

Full loan cancellation is granted for your death or permanent/total disability.