WHAT YOU NEED TO KNOW ABOUT YOUR PERKINS LOANS
Dear Student:
Borrowing money to finance your education has long-term implications for your financial future. Like any other debt, your student loan is a serious financial obligation that must be repaid. The funds from this loan must be used for educational expenses only. As a rule of thumb, borrowers find that they can allocate no more than 15% of their gross income to the repayment of student loans. Since your loan repayment obligation will be based on the total you borrow, it is important that you consider your potential future income when making plans to borrow additional funds. Borrow only what is needed as your total loan debt can become very large.
The University of Wyoming holds your Federal Perkins Note. Payments will be made to the University of Wyoming. Your loan status is reported monthly to a credit-reporting agency. Loan rehabilitation is available to all defaulted borrowers by contacting the University of Wyoming for the benefits and requirements of rehabilitation.
MAXIMUM LOAN LIMITS
Depending on when you apply and your level of need, under the Federal Perkins Loan program you can borrow up to ---
$4,000 for each year of undergraduate study. The total amount you can borrow as an undergraduate is $20,000.
$6,000 for each year of graduate or professional study. The total amount you can borrow as a graduate or professional student is $40,000, including any Federal Perkins loans you borrowed as an undergraduate.
At UW, we have a limited pool of funds with many students who have financial need. Therefore, UW generally limits annual Federal Perkins Loans to $1,200 to $2,000 per year, based on the applicant’s need and grade level.
U.S. ARMY LOAN REPAYMENT PROGRAM
If a Perkins Loan borrower serves as an enlisted person in the U.S. Army, in the Army Reserves, or in the Army National Guard, the U.S. Department of Defense will repay a portion of the loan. For more information contact your local military recruiting office. This is a recruitment program, not a cancellation, and does not pertain to your prior Army service.
IMPACT OF A PERKINS LOAN ON YOUR FINANCIAL AID ELIGIBILITY
Your decision to borrow a Federal Perkins Loan will impact your eligibility for other financial aid. Perkins loans are considered a type of financial aid. When you accept a Perkins loan, you cannot receive more financial aid than it will cost you to go to college. UW establishes a total cost of attendance for each student. Your family’s contributions toward your education plus your total financial aid package cannot exceed this cost of attendance figure.
LOAN CONSOLIDATION
Are you making student loan payments to several lenders? Would you find it easier to make just one loan payment each month? If so, loan consolidation may be of help for you.
A consolidation loan will pay off all your eligible student loans and result in a single monthly payment, usually less than the total monthly amount you’re paying now. You can even consolidate your loans if some of your student loans are past due.
You can request graduated payments or income-sensitive payments. The annual interest rate is computed as a weighted average of the interest rates of all of your student loans and remains fixed for the life of your consolidation loan. Remember your Perkins Loan interest rate is 5%. You may lose your Perkins deferment/cancellation benefits upon consolidation.
If you’d like to know more, or if you’d like to get an application, contact one of your current Stafford lenders or one of these organizations that consolidate student loans.
US Dept. of Education (800)557-7392
Wyoming Student Loan Corp. (800)999-6541 Revised 05/01/06