The interest rate on a Perkins Loan is a fixed rate of 5% for the entire loan period.
As long as the borrower is a student and enrolled at least half time status, interest will not accrue on the loan.
Once enrollment drops below half time status, a grace period of nine months begins. During this time, payments are not required and interest does not accrue.
Perkins Loan borrowers are entitled to the following rights:
Deferment - allows temporary postponement of payments on the loan. The borrower must request a deferment in writing.
- Student deferments - are available to borrowers who are enrolled at least half time status and provide verification of enrollment.
- Unemployment deferments - are available if the borrower is working less than 30 hours a week and actively seeking full time employment.
- Economic hardship deferments - certain criteria must be met in order to qualify for this type of deferment. Please contact the loan servicer ECSI to determine eligibility.
- Forbearance - Forbearance is available to assist borrowers who do not qualify for a deferment. Forbearance grants relief from making regularly scheduled payments, but interest will still accrue during a period of forbearance and must be paid at the end of the forbearance period.
The forms necessary to apply for deferment or forbearance are available by contacting:
ECSI: (888) 549-3274 Website: https://heartland.ecsi.net/
Exit Counseling
Cancellation
Depending on the occupation, the borrower may qualify to have partial or total cancellation of the loan. Some of the occupations include:
- Full time teaching in pre-kindergarten, child care programs, special education, low income schools, head start programs, as a school speech pathologist, or teaching in areas of shortage such as math, science, foreign language or bilingual education;
- Full time faculty at a tribal controlled university;
- Law enforcement or corrections officer, public defenders, firefighters;
- Nurse or medical technician or allied health professional who assists, facilitates, or complements the work of a physician or other specialists;
- Librarians with a master's degree in library science and employed by a public library or school in low income designated areas;
- Work for a child family service agency and provide services for low income or at-risk children; or
- Provide early intervention services to children from 0-2 years of age.
The borrower could qualify for up to 100% cancellation of the loan over a period of time for any of the above occupations.
Partial cancellation may be available for:
- Peace Corps
- Full time in the military for a period of at least one year in an area of hostility.
The forms necessary to apply for deferment in anticipation of cancellation and for cancellation are available by contacting:
ECSI: (888) 549-3274 Website: https://borrower.ecsi.net