Special Note: As of October 1, 2017, the Federal Perkins Loan program expired and schools participating in it no longer award and disburse new Perkins Loans.
The Perkins Loan program is a low interest loan available for undergraduates with exceptional financial need. It is designed as a lower-interest loan to help students with the financial burden of college. No interest accrues on the loan while students are enrolled at least half time, and no interest accrues during grace periods.
It is important to note that although the Perkins Loan is a federal loan, the school is the lender. The loan will be billed separately from your other federal loans. If you would like to consolidate your Perkins Loan(s) in with your other federal loans, please see below for more information about federal loan consolidation.
Perkins Repayment Information
Interest rate: 5% per year, fixed
Grace period: 9 months
Loan term: 10 years
Wentworth Institute of Technology uses University Accounting Service, or UAS, as our billing service. Treat any and all mail that you receive from UAS as if it is from Wentworth.
Remember, as a Perkins Loan borrower, is it your responsibility to update your address and all contact information with UAS.
Check payable to Wentworth Institute of Technology, mailed to:
University Accounting Service
P.O. Box 5879
Carol Stream IL 60197
Automated phone payment via UAS can be made at (844) 870-8701. More information can be found on the UAS website.
Once the repayment period begins, you may be eligible for periods of deferment during which interest does not accrue on the loan balance and repayment of principal is not required. Deferment types and descriptions are listed below.
Student deferment — unlimited
Perkins borrowers may defer their loans if they are enrolled at least half time in a degree-granting program at an institution of higher education. Deferment must be requested for each term of enrollment and is the responsibility of the borrower. In some instances, a deferment form may be required each semester. Deferments are granted on a closed-ended basis, which is to say they are granted for a set period of time based on the timeframe verified by the institution you currently attend.
Unemployment deferment — 36 months
Perkins borrowers are eligible for up to 36 months of deferment if unable to secure full-time employment. The following documentation should be provided:
Economic hardship deferment — 36 months
Perkins borrowers are considered to have an economic hardship if:
- Working full -time but earning an amount that is less than the federal minimum wage rate (monthly amount, based on $7.25/hour): $1,256.67 or 150% of the poverty guideline for family size and state of residence, or
- Receiving public assistance, such as Temporary Assistance for Needy Families (TANF), Food Stamps/Supplementary Nutritional Assistance Program (SNAP), Supplemental Security Income (SSI), State-sponsored General Assistance, etc.
For Perkins loans, unlimited deferment is available to Armed Forces reservists and National Guard personnel called to active duty, and to regular military personnel assigned to duty stations other than their normal stations because of war, military operation or national emergency.
Financial hardship forbearance
Perkins borrowers may request a financial hardship forbearance if they are experiencing financial difficulty but do not qualify for any other type of deferment. Forbearance only defers principal payments - interest continues to accrue. All interest is due at the end of the forbearance period and cannot be capitalized (added to the principal balance and charged interest upon the new balance).
More information and can be found on the UAS site. Forms can be found at this location on the UAS site.
You may be eligible to cancel all or part of your loan if you are working in a field eligible for cancellation. More information on Perkins Loan cancellations.
Perkins Rehabilitation Information
A defaulted loan may be rehabilitated if the borrower: (a) makes an on-time monthly payment, as determined by the institution, each month for nine consecutive months, and (b) requests to rehabilitate the loan. If one monthly payment is missed, the rehabilitation process terminates, and the loan goes back to the status as before the loan rehabilitation agreement. A borrower may apply for rehabilitation as many times as it takes to complete a successful rehabilitation, however, a defaulted loan may only be successfully rehabilitated once!
Benefits of loan rehabilitation
- Loan is returned to regular repayment status.
- Borrower regains the balance of benefits and privileges of the original promissory note, including eligibility for deferments, forbearance, cancellations and flexible repayment options.
- Removal of default from the borrower's credit history.
- Borrower re-establishes Title IV student financial assistance eligibility.
How to apply:
A loan rehabilitation agreement must be completed and signed by the borrower. Contact the Wentworth Student Service Center at 617-989-4020 or email email@example.com to discuss this option for your Perkins Loan.
At this time, the only lender offering federal consolidation loans is the U.S. Department of Education's William D. Ford Direct Loan Program.
Direct Loans are now routinely outsourced for servicing. Although you will consolidate under the William D. Ford Direct Loan Program, your loan servicing company will have a different name. You will be able to choose your servicer during the consolidation process.
Note that FFEL loans, though federal in nature, are not owned by the Department of Education and are serviced by the lender. Perkins Loans are owned by the lending school and may be serviced by the school or by outside companies under contract.
Borrowers should be aware when consolidating that the borrower may also forfeit eligibility for certain deferment and cancellation provisions. A careful review of deferments and cancellations and the borrower's future status should be made before entering into a consolidation agreement.
Loans in Default
If you fail to make payments according to the terms of your promissory note, the binding legal document you signed at the time you took out your loan, the following are the consequences of defaulting on your loan:
- National credit bureaus will be notified.
- Eligibility for any type of deferments will be lost.
- Loan is accelerated, making payment in full immediately due (principal and interest).
- No longer eligible for Title IV federal financial aid if you decide to return to school.
- Late fees and collection costs will be added on top of your loan amount. Loan is subject to outside collection agency assignment.
- Continued failure to repay your defaulted loan results in your loan being assigned to the U.S. Department of Education.
- Please contact the Student Service Center immediately at 617-989-4020 with any questions or to discuss possible options.