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Federal Perkins Loan Program

OSU partners with a Perkins Loan billing service called Heartland Campus Solutions ECSI (formerly known as just ECSI, Inc.) Perkins loan borrowers will receive communications from HeartlandECSI on behalf of OSU.

The Federal Perkins Loan is a need-based, federal loan with a 5% interest rate, administered by the OSU Business Affairs/Student Loan Office. Selection of recipients is handled by the Office of Financial Aid & Scholarships in accordance with federal regulations. The government pays the interest while the student is enrolled at least half time. Repayment begins nine months after graduation, withdrawal, or if attendance drops below at least half-time enrollment.

A student must sign a promissory note in order to receive the loan funds. The amount listed on the award letter is the total amount that may be borrowed. The Office of Financial Aid & Scholarships sends the promissory note to the student with additional enclosures. The OSU Business Office/Student Loans Office is the holder of the signed promissory note. Loan funds are disbursed as a credit to the student's billing account. See Federal Programs on the OSU Financial Aid & Scholarships website for further information.

The office of Financial Aid and Scholarships sends an email with a link to HeartlandECSI to complete a promissory note. Here is the contact information for OSU's Perkins loan billing partner, HeartlandECSI:

Oregon State University
C/o HeartlandECSI
181 Montour Run Rd
Coraopolis PA 15108-9408

(888) 549-3274

www.heartlandecsi.com

OSU's School Code: 80

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Repayment

When you received your student loans, you signed a promissory note agreeing to make repayment according to the terms of the note. The note is a legally binding document which obligates you to repay the loans. Perkins Loans are borrowed from and repaid directly to OSU. It is important not to confuse Perkins Loans with other student loans you may have borrowed, such as the Federal Direct Student Loans, private educational loans through banks, etc. Perkins Loans cannot be "bought" by another lender as some other student loans may be, though they can be included in a consolidation loan. Also, Perkins Loans borrowed from different schools are never "combined" but are repaid to each school separately.

Exit Interview: As a Federal Perkins Borrower you must complete exit counseling when you complete coursework at OSU or anytime your enrollment status drops to less than half-time. You will receive an email from ECSI with a link and instructions on how to complete your exit interview. You will be given important information about your rights and responsibilities as a federal Perkins Loan borrower.

Please note: This also applies when transferring to another institution or withdrawal from the university.  

Grace Period: The grace period is the interval between leaving OSU or dropping below half time enrollment, and the beginning of loan repayment. The grace period is nine months. During this time, payments need not be made and interest will not accrue. When the grace period expires, principal and interest will begin to accrue and your first payment will be due the next month. The OSU Business Affairs/Student Loan Office will send you a notice when your grace period is about to expire.

Interest Rate: Interest begins to accrue on your loan upon completion of the grace period. The annual percentage rate is five percent (5%), calculated monthly on the unpaid principal balance.

Change of Address: As stated in your promissory note, you are responsible for keeping the OSU Business Affairs/Student Loan Office informed of your current mailing address until your loan is repaid. Late charges are assessed when a bill is not received due to an invalid address. REMEMBER THAT YOUR LOAN OBLIGATION STILL STANDS EVEN IF THE BILL DOESN'T REACH YOU.

Student Loan Repayment Info – from the Consumer Financial Protection Bureau

 

Deferment

Principal need not be paid and interest will not accrue during a period when our office is officially notified of the following:

Student Deferment Privileges: There is no limit to the number of times you may receive a student deferment. It is your responsibility to submit a complete DEFERMENT FORM to the Registrar of the school you are attending for verification of enrollment. This form may cover periods for up to one academic year. After the Registrar certifies the form, it should be returned to the OSU Student Loan Office. If you return to OSU at least halftime, your payments will be deferred automatically after registration. There is no limit on the number of times you may receive a student deferment. Medical interns and residents are not eligible for this deferment.

You may also defer your loan payments if you are:.

  • enrolled in a Department of Education-approved course of study that is part of a graduate fellowship program.
  • enrolled in a Department of Education-approved course of study that is part of a rehabilitation training program for disabled individuals.
  • engaged in a graduate or post-graduate approved fellowship supported study outside the United States.

Unemployment Deferment privileges - If you are seeking and unable to find full-time employment, you may defer your loan payments. Maximum is three years.

Economic Hardship Deferment privileges - If you are experiencing an economic hardship, you may defer your loan payments. Maximum is three years.

In addition, you will receive a six month post-deferment grace period following any of the above deferments. The Student Loan Office will send you a letter when your post-deferment grace period has expired.

Forbearance - If you are experiencing financial hardship, poor health, or other temporary financial difficulty not covered by an Economic Hardship Deferment, you may qualify for a forbearance. Unlike deferments interest continues to accrue and there is no post-deferment grace period. Maximum is three years.

 

Cancellation

The National Defense Education Act and subsequent amendments provide for full or partial cancellation of loans under the certain circumstances.

Teacher Privileges: Your loan is cancelled at the rate of 15% of the original loan amount for each of the first and second complete year of teaching, 20% for each of the third and fourth complete year of teaching, and 30% for the fifth complete year. Exception: The rate of cancellation for Head Start is 15% of the original loan amount for each complete year of service. Your request for cancellation will not be processed until you have taught for one full school year. To defer payments during the qualifying year, you must apply for a deferment.

Teaching in a Low-Income School - You must be a full-time teacher in a public or other nonprofit elementary or secondary school determined by the Department of Education to have a higher concentration of students from low-income families. The list of qualifying schools is published annually in the Directory of Low-Income Schools for Teacher Cancellation Benefits. If you are teaching at a school that is on the list one year but not the next, you will remain eligible to receive a cancellation as long as you teach at that school.

Service in a Head Start program - You must be a full-time staff member in a Head Start program.

Teaching Special Education - You must be a full-time special education teacher, including teachers of infants, toddlers, children, or youth with disabilities in a public or other nonprofit elementary or secondary school system.

Teaching in a Shortage Field - You must be a full-time teacher of mathematics, science, foreign languages, bilingual education, or any other field of expertise where the State educational agency determines that there is a shortage of qualified teachers.

Employment Privileges: Your loan is canceled at the rate of 15% of the original loan amount for each of the first and second complete year of employment, 20% for each of the third and fourth complete year of employment, and 30% for the fifth complete year.

Provider of Early Intervention Services - You must be a full-time qualified professional provider of early intervention services in a public or other nonprofit program under public supervision, as authorized in Section 676 (b) (9) of the Individuals with Disabilities Education Act.

Nurse or Medical Technician - You must be a full-time nurse or medical technician providing health care services.

Provider of Services to High Risk Children - You must be a full-time employee of a public or private nonprofit child or family service agency who is providing, or supervising, the provision of services to high-risk children who are from low-income communities and the families of such children.

Law Enforcement or Corrections Officer - You must be a full-time law enforcement officer for a local, State, or Federal corrections agency.

Attorneys Employed in a Defender Organization: Upon making a properly documented written request to the holder of your loan, you are entitled to have up to 100% of the original principal loan amount cancelled for qualifying full-time service that includes August 14, 2008, or begins on or after that date, as an attorney employed in a defender organization established in accordance with section 3006(g)(2) of title 18, U.S.C.

Firefighter: Upon making a properly documented written request to the holder of your loan, you are entitled to have up to 100% of the original principal loan amount cancelled for qualifying service that includes August 14, 2008, or begins on or after that date, as a full-time firefighter for a local, State or Federal fire department or fire district.

Faculty of a Tribal College or University: Upon making a properly documented written request to the holder of your loan, you are entitled to have up to 100% of the original principal loan amount cancelled for qualifying full-time service that includes August 14, 2008, or begins on or after that date, as a faculty member at a Tribal College or University, as that term is defined in section 316 of title 20, U.S.C.

Librarian: Upon making a properly documented written request to the holder of your loan, you are entitled to have up to 100% of the original principal loan amount cancelled for qualifying full-time service that includes August 14, 2008, or begins on or after that date, as a librarian, if you have a master’s degree in library science and you are employed in an elementary or secondary school that is eligible for assistance under part A of title I of the elementary and Secondary Education Act of 1965, or you are employed in a public library that serves a geographic area that contains one or more of such schools.

Speech-Language Pathologist: Upon making a properly documented written request to the holder of your loan, you are entitled to have up to 100% of the original principal loan amount cancelled for qualifying full-time service that includes August 14, 2008, or begins on or after that date, as a full-time speech-language pathologist if you have a master’s degree and if you are working exclusively with schools that are eligible for assistance under title I of the Elementary and Secondary Education Act of 1965.

Military Cancellation Privileges: If you become a member of the United States Armed Forces, you may qualify for a cancellation of up to 50% of your loan. Cancellation is calculated at the rate of 12.5% of the original loan amount for each full year of service for a maximum of four years. Eligibility is limited to those who are serving in an area of hostility that qualifies for special pay under Section 310 of Title 37 of the United States Code. Contact the Student Loan Office for more details.

Peace Corps Cancellation Privileges: If you are a volunteer working under the Peace Corps Act or the Domestic Volunteer Service Act of 1973, you are entitled to cancel up to 70% of your loan. Cancellation is calculated at the rate of 15% of the original loan amount for each of the first and second twelve-month periods of volunteer service and 20% for each of the third and fourth twelve months periods of volunteer service, with a maximum of four years.

Permanent and Total Cancellation: Should you become permanently and totally disabled, your loan can be canceled in full. Permanent and total disability means the inability to work and earn money because of an injury or illness that is expected to continue for an indefinite period or result in death. Please contact the Student Loan Office for further information.

Death Cancellation: In the event of your death, your loan will be canceled in full upon receipt of a certified copy of the death certificate.

 

Loan Rehabilitation

If you default on your Federal Perkins Loan, you may rehabilitate your defaulted loan by requesting the rehabilitation and by making on-time, monthly payments, as determined by OSU, each month for nine consecutive months. If you successfully rehabilitate your Federal Perkins Loan, you will again be subject to the terms and conditions and qualify for the benefits and privileges of your original promissory note and the default will be removed from your credit history. You can rehabilitate a defaulted Federal Perkins Loan only once.

 

Disputes

You may dispute the terms of your Federal Perkins Loan by writing to the OSU Business Affairs/Student Loan Office. If OSU is unable to resolve the dispute, you may seek the assistance of the Department of Education's Student Loan Ombudsman: 877-557-2575

 

Billing & Payments

Perkins loan statements are mailed out at the end of each month. Payments are due on the 15th of the month.
You can set up Automatic Payment and make payments at Heartlandecsi.com for your OSU Perkins loan. You can authorize the ECSI to deduct your payment directly from your bank account or MasterCard. This means reliable and consistent payments, and you save time and postage.

 

Delinquency and Holds

As a loan borrower, you are responsible for repaying your loans. If you are experiencing difficulty adhering to your Perkins loan repayment schedule, you should contact us at the OSU Student Loan office. We are committed to assisting borrowers, but must follow strict collection procedures. As the lender of your Perkins loan, OSU is responsible for managing the collection of the loan.

If you fail to make scheduled payments, and do not contact the OSU Student Loan office, OSU will assume that you are unwilling to meet your financial obligation and declare your loan to be in default. If deemed necessary, OSU may accelerate the maturity of the loan and demand immediate repayment of the entire principal balance plus accrued interest and fees. The loan may also be referred to a collection agency and will be reported to a national credit bureau as a defaulted loan.

Default on your loan is serious and can have the following consequences:

  • Hold on release of OSU transcript
  • Hold on registration or readmission to OSU
  • Future financial aid may be denied
  • Assignment of the loan to the US Department of Education

 

Tax Deduction for Student Loan Interest

NOTE: 1098E forms are mailed at the end of January.

The Internal Revenue Service offers helpful information about the Taxpayer Relief Act, IRS forms, and IRS publications.

Check out IRS Tax Information for Students. Their Publication 970 describes tax benefits for education.

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