University Student Loans and Debt Management
Federal Perkins/NDSL loans
We can take your payment over the phone with your checking or savings account information: Call us at 303-492-5571 or 1-800-925-9844 now!
Federal Perkins loans are low-interest (currently 5%), long-term loans made through school financial aid offices to help financially needy undergraduate and graduate students pay for postsecondary education. The school acts as the lender for the program. All money repaid is put back into the fund and redistributed to current students. University Student Loans and Debt Management handle repayment for Federal Perkins loan borrowers.
| Grace Periods | Exit Interview |
| Repayment | Default |
| Interest | Rehabilitation |
| Forbearance & Deferment | |
Grace Periods
A "grace period" is the period of time before the borrower must begin or resume repaying a loan. An "initial grace period" is one that immediately follows a period of enrollment and immediately precedes the date repayment is required to begin for the first time.
| Type of Grace Period | Perkins Loans | DSLs made on or after 10/1/80 | NDSLs made before 10/1/80 |
|---|---|---|---|
| Initial | 9 months | 6 months | 9 months |
| Post-Deferment | 6 months | 6 months | none |
Any payments made to your loan during the academic year the loan was made and before the initial grace period has ended will reduce the original loan amount. There is no penalty for prepayment.
Repayment
Repayment begins when the grace period expires. Generally, we bill borrowers on a monthly basis. Our loan servicer, Campus Partners, sends bills on our behalf. Repayment of Federal Perkins loans is based on a maximum 10 year repayment period. Your promissory note states your minimum monthly payment amount.
Interest
Simple interest accrues on the unpaid principal balance. The annual interest rate for loans made:
- before July 1, 1981 was 3%;
- between July , 1981, and September 30, 1981 was 4%;
- on or after October 1, 1981 is 5%.
Forbearance & Deferment
Forbearance is a temporary postponement of payments, an extension of time allowed for making payments, or the acceptance of smaller payments than were previously scheduled. Interest continues to accrue during any period of forbearance. You must request forbearance in writing and provide documentation supporting your claim that you are financially unable to make payments. Periods of forbearance collectively may not exceed a total of 3 years.
You are entitled to have the repayment of a loan deferred under certain circumstances. For loans made after July 1, 1993, interest does not accrue during any type of deferment.
Effective October 7, 1998, the Higher Education Amendments of 1998 expanded the deferment and partial loan cancellation benefits for all Perkins loan borrowers. Deferment provisions include unemployment, economic hardship, and service that will be eligible for partial loan cancellation. Students who attend classes at universities other than CU are eligible for loan deferment.
Whie in school, you can defer your loans, but you must make arrangements with our office. If you're in process of consolidating your loans, continue to make your payments so your loans don't go into default. Contact the Student Debt Management department at 303-492-5571 or 800-925-9844.
To apply for forbearance, or to defer payments due to economic hardship or unemployment, complete the Perkins Forbearance/Economic Hardship/Unemployment application;
To apply for a loan cancellation, complete the Perkins Cancellation application.
To apply for a deferment pending future cancellation, complete the Perkins Deferment application.
Exit Interviews
All Federal Perkins loan borrowers who separate (graduate or withdraw, and time out) from the University of Colorado at Boulder must complete an exit interview. The exit interview packet consists of a fact sheet, a questionnaire and a repayment schedule. This packet provides you with vital information regarding your repayment terms, deferment options and consequences of default.
If you are graduating, the exit packet is mailed to you about a month before commencement. If you withdraw, exit packets are mailed at the end of the semester. Or students can complete the exit interview counseling process online.
Until the complete packet is returned, a stop is placed on your records. The stop will hold transcripts, diplomas, further registration and re-admittance. Please return the exit packet as soon as possible to avoid any delay with transcript and diploma requests.
Default
Don't default! There are options available to you - let us help!
Default in the Federal Perkins Loan Program is defined as "the failure of a borrower to make an installment payment when due or to comply with other terms of the promissory note or written repayment agreement."
Your loan is reported to national credit bureaus each month, regardless of the status. Making on-time, consistent monthly payments is the best way to secure a positive credit rating for your future. Sometimes, however, you may find that it's not possible to meet your financial obligations because of temporary hardship. You can defer (postpone) your payments or make smaller payments and still maintain a good credit rating until you're able to resume regular payments. You can apply for a deferment for up to one year at a time.
If you're enrolled in school again or consolidating your loan, you need to call us to defer your loan and keep it in good standing. See information in "Forbearance and Deferment" paragraph above.
The Student Debt Management (SDM) department is trained on deferment and payment options to best suit your needs. If you cannot make a payment at any time, we can help you determine your next step and maintain your credit. Contact us at bursar@colorado.edu or 303-492-5571.
You can also check out our online deferment and forbearance descriptions and download forms yourself.
Rehabilitation
Federal Perkins loan borrowers have a one-time option to rehabilitate your loans. The terms consist of establishing and signing an agreement with our office and making 12 consecutive, on-time, voluntary payments. Upon receipt of the 12th payment, your loan is considered rehabilitated and derogatory credit reporting is deleted. Your original loan provisions are reinstated and you have 9 additional years (post-rehabilitation) to pay off your loan. Please contact us for more information.
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