Perkins Loan Program
Dear Perkins Loan Recipient:
The Perkins Loan Program (formerly National Direct Student Loan) was established to assist students in financing their postsecondary education. At The University of New Orleans, this program has played a significant role by providing the financial sources for numerous students to pursue their education ambitions.
Repayment is important to your future, as well as that of future Privateer Students. By signing the promissory note for the Perkins Loan, you agreed to repay your loan upon leaving school. Your repayment makes it possible for other students to benefit from this financial resource.
Repaying the loan establishes a credit reference which may be built upon in obtaining credit from other sources. Failure to repay the Perkins Loan may seriously impair your future borrowing ability.
The purpose of the exit interview and this website is to inform you of your rights and responsibilities as a borrower under the Perkins Loan Program. It is hoped that this information will help answer your questions regarding repayment responsibilities.
TABLE OF CONTENTS
SERVICING YOUR PERKINS LOAN
The University has contracted with “University Accounting Service”- (UAS) to administer your Perkins Loan after you leave school. While the University will still maintain your Perkins Loan, UAS will be responsible for sending you billing statements, receiving and processing your payments, reviewing and processing deferment and cancellation forms, and addressing all of your other customer service needs.
University Accounting Service (UAS) offers 24-hour access to loan account information, To obtain your information, call 800-999-6227. Please have your account number and your social security number available.
Payments, forms, and correspondence should be mailed to:
University Accounting Service (UAS), L.L.C. |
PO Box 5291 |
Carol Stream, IL 60197-5291 |
Make your check payable to UNO. Please include the remittance portion of your billing statement. If you do not have the remittance portion, please write your account number on your check.
If you would prefer to make payments electronically, visit our Electronic Bill Presentment & Payment site at www.uasecho.com.
THE EXIT INTERVIEW
Regardless of your reason for leaving the University, as a recipient of a Federal Perkins Loan, you are required to complete an exit interview. During the exit interview, your rights and responsibilities as a borrower are disclosed along with your repayment schedule, terms of payment, billing procedures, interest charges, etc. In addition, you will be presented with the summary information on all loans you have received from the University of New Orleans (including the amount and date on which your first payment will be due).
Exit interview attendance is essential in that during the session you will have an opportunity to ask questions about your loan(s), your eligibility for deferment or cancellation benefits, and your obligation to pay back your loan now that you are no longer in school. Although the above areas are discussed in this booklet, there may be special conditions that apply to you which require further clarification.
The exit interview also provides us with an opportunity to update the information we have on you, including your name and address as well as information regarding future plans which may affect your repayment terms.
For your convenience, you may also complete the exit interview process online at the following website: www.uasexit.com.
YOUR RIGHTS AND RESPONSIBILITIES
Borrower RIGHTS: The University of New Orleans must inform you of the following:
- Where to send payments and write for answers to question: University Accounting Services (UAS) LLC; P.O. Box 529; Carol Stream, IL 60197 - 5291.
- What your total debt (principal and interest) will be and the interest rate.
- Your first due date and the number, frequency, and amount of all payments.
- Your right to be granted a deferment in accordance with your promissory note, if you have supplied the appropriate documentation.
- Your option to repay your loan early without penalty.
- Concerning consolidation options.
- What fees, penalties, and charges you could incur for late payments and defaulting on your loan.
- Concerning your grace period and loan cancellation possibilities.
- The University must also provide a copy of your promissory note(s)
Borrower RESPONSIBILITIES: You are required to do the following without exception:
- Notify, University Accounting Service (UAS), of any change in your address, name, or social security number.
- Pay your loan according to the repayment schedule.
- Provide the proper forms--entirely completed--for any deferment or cancellation request.
- Notify, University Accounting Service (UAS), of any change in deferment, enrollment, graduate, or cancellation status.
- To attend an exit interview and update your information with the Office of the Bursar or, University Accounting Service (UAS), before you leave the University regardless of your reason for leaving.
PAYMENT AND BILLING PROCEDURES
Grace Period:
Once you have left school or are registered as less than half-time (minimum of 6 hours for an undergraduate and 5 hours for a graduate), you are entitled to a nine month grace period. During this time, no payment is required and interest does not accrue.
During your grace period you will receive notices updating you on your loan along with another copy of your repayment schedule which you must sign and return. These notices will be printed on your bill forms but will indicate a "grace period notice" or "statement of account" and should not be confused with an actual bill.
Those who are granted a deferment will receive an updated repayment schedule 90 days into the grace period. You must sign and return each repayment schedule for our file record.
Billing: Billing cycles are set up on a monthly basis. Please refer to your repayment schedule.
Bills are mailed by University Accounting Service (UAS). However, borrowers are reminded they are still responsible for payments due even if bills are not received. You must contact University Accounting Services to resolve billing questions or if you don't receive a bill. You must update your address with University Accounting Service (UAS), to ensure timely receipt of billing statements.
Payments are due on the first of the month. If a payment is not received within 15 days of the due date, an overdue notice will be sent and late fees assessed. Please write your account number on all checks and send your checks to University Accounting Service (UAS), to the address indicated.
Paying ahead or making prepayments is allowed without penalty but does not necessarily replace your obligation to make a scheduled payment. A borrower is not allowed to double up one quarter and skip the next quarter without first notifying University Accounting Service (UAS).
DEFERMENT OF PAYMENT
Definition: Deferment is a period when interest does not accumulate and payments on the principal loan need not be paid. Borrowers who qualify for deferments must submit a completed deferment form. Provisions for deferment are listed in the section below. A blank student deferment form may be obtained by visiting the University Accounting Service's (UAS) website. You may also call University Accounting Service UAS) at 800-999-6227 to obtain a deferment form.
Details:
- You need to complete Part I of the deferment form and have Part II certified by the Registrar, Commanding Officer, or other authorized certifying official.
- To receive a Hardship or unemployment Deferment or a Forbearance, you must contact University Accounting Services to request the appropriate form. You need to complete the entire form and return it with your payment with any accrued interest. Interest will continue to accumulate on accounts in forbearance and must be paid.
CANCELLATION OF LOAN
Borrowers who qualify for cancellation benefits must submit a written cancellation request. You need to contact University Accounting Service (UAS) to request a cancellation form and to find out if your loan qualifies for cancellation benefits. The certified forms are due every year until your eligibility ends. If you remit payments while you are eligible for loan cancellation, your payments will not be refunded. Provisions for cancellation are listed below.
LOAN CONSOLIDATION
You may also consider consolidating your Perkins Loan through the U.S. Department of Education. Direct Consolidation Loans allow borrowers to combine one or more Federal education loans into a new loan that offers several advantages such as only one payment for all loans included in a Direct Consolidation Loan. With only one lender and one monthly bill, it is easier than ever for borrowers to manage their debt.
Find out more about consolidating your Federal Loans by calling 800-557-7392 or http://www.loanconsolidation.ed.gov/
Borrowers may view their Title IV loan information on the National Student Loan Data System at http://www.nslds.ed.gov/nslds_SA/.
CREDIT AND DEFAULT
When it is time to begin repayment, your loan will provide you with an excellent credit reference, provided you meet your responsibilities. In order to process a credit reference, we will need your written authorization. Most companies seeking reference checks have forms you can sign and forward to us to complete.
Those who choose to ignore their obligation and fail to remit timely payments will find the following actions taken:
- University of New Orleans services withheld: All future services including transcripts, diplomas, and financial aid will be denied.
- Transfer to Collection Agency: All delinquent loans must, by state law, be referred to the General Revenue Corporation (GRC) where collection costs of up to 24% will be added to the amount due, the loan will be accelerated making the entire amount of the loan due, and future deferments may be denied. Loans pay also be placed with either our second placement agency, National Recovery Agency or with the Louisiana Office of Attorney General.
- Credit Bureau Report: All current and delinquent loans are reported by University Accounting Service (UAS) to all three national credit bureaus.
- Assignment to the U.S. Department of Education: Loans that remain in default may be assigned to the Federal Government who will pursue collection action indefinitely. The U.S. Department of Education will also withhold Federal Tax refunds and prevent Federal employment for many with defaulted loans.
The single best thing a borrower can do is to keep the lines of communication open. This loan is an important responsibility and must be treated that way.
DEFERMENT AND CANCELLATION PROVISIONS
Information on the various types of deferments and cancellation provisions:
Overview
Deferment is a suspension of payment without interest accrual on the account. All deferments require the borrower to file appropriate certification in a timely manner. All deferment periods are followed by a renewed grace period of six months, after the end of the deferment period during which interest does not accrue.
In order to receive a deferment, a borrower who requests deferment must provide the university with all the information and documents the school requires by the school’s deadline as evidence that the borrower qualifies for deferment benefits.
Upon making a properly documented request to The University of New Orleans or, University Accounting Service (UAS), the borrower may defer making scheduled installment payments and will not be liable for any interest that might otherwise accrue during the following periods:
Deferment Types, 07/01/93 - current |
Deferment period |
In-School Half-time or greater student |
No Limit |
Graduate Fellowship |
No Limit |
Forbearance |
3 years |
Economic Hardship |
3 years |
Seeking full employment |
3 years |
Rehabilitation training |
No Limit |
Internship or Residency |
2 years |
Military Service |
No Limit |
Military Service Post Demobilization |
6 Months |
Active Duty Student |
3 years |
Deferments for all Perkins Loans (regardless of disbursement date)
In-school
A borrower may defer repayment of a Perkins Loan if he or she is enrolled at least half-time in an eligible school.
Internship/Residency
A borrower who is serving in a medical internship or residency program is not considered to be in school for deferment purposes and may not receive an in-school deferment on that Perkins Loan for the internship or residency program. However, the borrower is eligible for an internship deferment for up to two years.
While the borrower is serving an eligible internship, he or she may defer repayment for up to two years. Interest will not accrue during the internship deferment. An eligible internship is one that requires the borrower to hold at least a bachelor’s degree before beginning the program.
The internship must also be required by a state licensing agency as a prerequisite for certification of the individual for professional practice or service. The borrower must provide the school certification from an official of the appropriate state licensing agency indicating that the successful completion of the internship is required by the state licensing agency as a prerequisite for certification for professional practice or service. The borrower must further provide a statement from the organization where the borrower will be an intern certifying:
- Applicants must hold a bachelor’s degree to be admitted into the internship program
- The borrower has been accepted into the internship program
- Dates when the borrower is expected to begin and complete the program
Graduate fellowship
A borrower may defer repayment if he or she is enrolled and in attendance as a regular student in a course of study that is part of a graduate fellowship program approved by the Department, including graduate or postgraduate fellowship-supported study (such as a Fulbright grant) outside the United States.
Forbearance
Forbearance is usually a temporary postponement of payments. The borrower may alternatively request an extension of time allowed for making payments or the acceptance of smaller payments than were previously scheduled. Unlike deferment, interest continues to accrue during any period of forbearance.
Schools may grant forbearance to borrowers who are experiencing financial hardship, poor health, or for other acceptable reasons. For example, the Department strongly encourages schools to grant periods of forbearance to borrowers who are serving in AmeriCorps. Also, the department may authorize periods of forbearance due to national military mobilization or other national emergency.
Borrowers must request forbearance in writing and provide supporting documentation of the reason for forbearance. Both the borrower and the school must agree upon the terms of the forbearance.
Schools may grant the borrower forbearance for a period of up to one year at a time. The forbearance may be renewed, but the periods of forbearance collectively may not exceed a total of three years. A school may apply an authorized period of forbearance to begin retroactively (that is, to begin on an earlier date than the date of the borrower’s request) if the borrower requests that the school do so and if he or she provides adequate documentation to support the request.
Hardship Economic
A borrower is entitled to an economic hardship deferment for periods of up to one year at a time, not to exceed three years cumulatively, if the borrower provides the school with satisfactory documentation showing that he or she is within any of the following categories:
- Has been granted an economic hardship deferment for either a Stafford or PLUS Loan for the same period of time for which the Perkins Loan deferment has been requested.
- Receiving federal or state public assistance, such as Temporary Assistance to Needy Families (formerly, Aid to Families with Dependent Children), Supplemental Security Income, Food Stamps, or state general public assistance.
- Working full time and is earning a total monthly gross income that does not exceed 150 percent of the poverty line for the borrower’s family size.
- Not receiving total monthly gross income that is more than twice the amount in (#3) above and that income minus an amount equal to the borrower’s monthly payments on federal postsecondary education loans does not exceed the amount specified in (#3) above.
- Working full time and has a federal educational debt burden that is 20% or more of the borrower’s total monthly gross income and the borrower’s total monthly gross income minus such burden is less than 220% of the amount specified in (#3) above.
- Serving as a volunteer in the Peace Corps.
Seeking full-time employment
A borrower may defer repayment on a Perkins Loan for up to three years, regardless of disbursement date and contrary provisions on the promissory note, if the borrower is seeking and unable to find full-time employment. Schools may determine the documents the borrower must provide to apply for this deferment.
To receive deferment for enrollment in a graduate fellowship program, the borrower must provide certification that he or she is engaged in full-time study in an approved graduate fellowship program (or has been accepted by the program).
Rehabilitation training
A borrower may defer repayment if he or she is enrolled in a course of study that is part of a department-approved rehabilitation training program for disabled individuals.
To receive this deferment, the borrower must provide the school with certification that:
- The borrower is receiving, or scheduled to receive, rehabilitation training from the agency
- The agency is licensed, approved, certified, or otherwise recognized by a state agency responsible for programs in vocational rehabilitation, drug abuse treatment, mental health services, or alcohol abuse treatment; or by the Department of Veterans Affairs
- The agency provides or will provide the borrower rehabilitation services under a written plan that (1) is individualized to meet the borrower’s needs; (2) specifies the date that services will end; and (3) is structured in a way that requires substantial commitment from the borrower
A substantial commitment from the borrower is a commitment of time and effort that would normally prevent the borrower from holding a full-time job either because of the number of hours that must be devoted to rehabilitation or because of the nature of the rehabilitation.
Military service
A borrower who is serving on active duty or performing qualifying National Guard duty in connection with a war, military operation, or national emergency does not need to pay principal or interest on Perkins, NDSLs, and Defense Loans.
Military service, Post Demobilization
The Military Service deferment period ends 180 days after the borrower’s demobilization date for the eligible active duty or National Guard service.
Active Duty Student
The College Cost Reduction and Access Act (CCRAA) created a new military deferment for borrowers enrolled in an eligible postsecondary school. Effective October 1, 2007, borrowers who are members of National Guard or Armed Forces Reserve, and members of the Armed Forces who are in retired status, are eligible for a 13 month period of deferment on repayment of their Perkins Loans following the completion of their active duty military service if they were enrolled in a postsecondary school at the time of, or within six months prior to, their activation. If the borrower re-enrolls in postsecondary school prior to the expiration of the 13-month period, the deferment ends on the date the student re-enrolls.
Unlike the military service deferment described above, students receiving the active duty student deferment need not be activated during a war, national emergency, or other military operation.
For purposes of the active duty student deferment, "active duty" has the same meaning as in Section 101(d) (1) of Title 10, United States Code, but does not include active duty for training or attendance at a service school/academy. Members of the National Guard may qualify for this deferment for Title 32 full-time National Guard duty under which a Governor is authorized, with the approval of the President or the U.S. Secretary of Defense, to order a member to State active duty and the activities of the National Guard are paid for by federal funds; or for State active duty under which a Governor activates National Guard personnel based on State statute or policy, and the activities of the National Guard are paid for by State funds. Many borrowers may also be eligible for the military service deferment, and a student may receive both deferments if eligible. If a student receives both, the overlapping periods of deferment will run concurrently.
Deferments for Loans Made Before July 1, 1993: Please contact UNO or UAS regarding deferment periods for these deferment types.
Parenting
A borrower may defer repayment (and interest will not accrue) during a period of up to one year if the borrower is a mother of a preschool-age child, provided the mother is working (or going back to work) at a salary that is no more than $1.00 above the minimum hourly wage.
A borrower may also defer repayment for up to six months if the borrower is pregnant, or if he or she is taking care of a newborn or newly adopted child. This deferment is called a parental leave deferment. The borrower must be unemployed and not attending school and must apply for deferment within six months of leaving school or dropping below half-time status.
Hardship
Loans disbursed before July 1, 1993; eligible for an additional type of hardship deferment, which is separate and different from an economic hardship deferment. A borrower may defer repayment for hardship, as determined by the school (for example, if the borrower is facing a prolonged period of illness or unemployment). A borrower may qualify for unlimited deferments due to hardship.
Interest will continue to accrue during the hardship deferment. Also, hardship deferments do not have post-deferment grace periods.
For a Deferment Exclusive to Perkins Loans Made Before July 1, 1993, and NDSLs Made Between October 1, 1980, and July 1, 1993: Contact the university regarding deferment periods for these deferment types.
The deferments in this section are only available for Perkins Loans made before July 1, 1993, and NDSLs made between October 1, 1980 and July 1, 1993. See the subsections following this list for more details on these deferments and for information on additional deferments.
A borrower may defer repayment for up to three years and interest will not accrue while he or she is:
- A member of the U.S. Army, Navy, Air Force, Marines, or Coast Guard
- A member of the National Guard or the Reserves serving a period of full-time active duty in the armed forces
- An officer in the Commissioned Corps of the U.S. Public Health Service
- (For Perkins Loans made before July 1, 1993, only) On full-time active duty as a member of the National Oceanic and Atmospheric Administration Corps
- A Peace Corps or AmeriCorps*VISTA (under Title I, Part A of the Domestic Volunteer Service Act of 1973) volunteer or comparable service (see below)
- Temporarily totally disabled or unable to work because he or she must care for a spouse or other dependent who is so disabled
- (For Perkins Loans made before July 1, 1993, only) A working mother (up to 12 months deferment)
- (For Perkins Loans made before July 1, 1993, only) A new parent (up to six months deferment)
Cancellation
Perkins Loan borrowers may be entitled to have all or a portion of a Perkins Loan canceled due to performance of qualifying services.
Upon making a properly documented written request to The University of New Orleans, a Perkins Loan borrower may be entitled to have up to 100% of the original principal amount of the loan canceled for work performed in qualifying services. Qualifying service must be performed subsequent to receiving the loan.
Note: With the exception of cancellations for Head Start, military (prior to 8/14/08) and volunteer service, the cancellation rate per completed academic year of full-time teaching or for each year of otherwise qualifying full-time service is 15% of the original principal loan balance for each of the 1st and 2nd years, 20% of the original principal loan balance for each of the 3rd and 4th years, and 30% of the original principal loan balance for the 5th year.
Teacher Cancellations
Teaching in low-income schools
A cancellation based on teaching in a school serving students from low-income families may be granted only if the borrower taught in an eligible school that is listed in the Directory of Designated Low-Income Schools for Teacher Cancellation Benefits.
The Directory is currently available in electronic format at: http://www.tcli.ed.gov/CBSWebApp/tcli/TCLIPubSchoolSearch.jsp.
A teacher in a designated low-income elementary or secondary school who is employed by an educational service agency may qualify for a teacher cancellation. In addition, a teacher in a designated low-income elementary school, secondary school, or location operated by an educational service agency may qualify for a teacher cancellation.
Teaching in special education
A person who provides one of the following services does not qualify as a teacher unless (1) that person is licensed, certified, or registered by the appropriate state education agency for that area in which he or she is providing related special educational services and (2) the services provided by the individual are part of the educational curriculum for handicapped children:
- Speech and Language Pathology and Audiology
- Physical Therapy
- Occupational Therapy
- Psychological and Counseling Services
- Recreational Therapy
Teaching in a field of expertise (shortage area)
For a borrower to be considered as teaching in a field of expertise that has been identified by a state education agency to have a shortage of teachers, the majority of classes taught must be in that field of expertise. A borrower who is teaching in science, mathematics, foreign language, or bilingual education qualifies for cancellation even if the State has not designated the subject area in which he or she is teaching as a shortage area.
Early Intervention Cancellation
A cancellation based on a borrower who has been employed full time as a qualified professional provider of early intervention services in a public or other nonprofit program under public supervision.
Law Enforcement or Corrections Officer Cancellation
This cancellation is based on a borrower who has served full time as a qualifying law enforcement or corrections officer.
To establish the eligibility of a borrower for the law enforcement or corrections officer cancellation provision, the school must determine that (1) the borrower’s employing agency is eligible and that (2) the borrower’s position is essential to the agency’s primary mission.
- A local, state, or federal agency is an eligible employing agency if it is publicly funded and its activities pertain to crime prevention, control, or reduction or to the enforcement of the criminal law. Such activities include, but are not limited to, police efforts to prevent, control, or reduce crime or to apprehend criminals; activities of courts and related agencies having criminal jurisdiction; activities of corrections, probation, or parole authorities; and problems relating to the prevention, control, or reduction of juvenile delinquency or narcotic addiction.
Agencies that are primarily responsible for enforcement of civil, regulatory, or administrative laws are ineligible. However, in recognition of the fact that the activities of many divisions and bureaus within local, state, and federal agencies pertain to crime prevention, control, or reduction, or to the enforcement of criminal law, the Department has determined that a sub-unit within a larger, non-law enforcement agency may qualify as a law enforcement agency for purposes of a law enforcement cancellation.
- For the borrower’s position to be considered essential to the agency’s primary mission, he or she must be a full-time employee of an eligible agency and a sworn law enforcement or corrections officer or person whose principal responsibilities are unique to the criminal justice system and are essential in the performance of the agency’s primary
The law enforcement/corrections officer cancellation is expanded to include full-time attorneys employed in Federal Public Defender Organizations or Community Defender Organizations, established in accordance with Section 3006A(g)(2) of Title 18, U.S.C.
Nurse or Medical Technician Cancellation
The cancellation is based on a borrower who has served full time as a nurse or medical technician providing health care services. The borrower must provide health care services directly to patients.
Child or Family Services Cancellation
The cancellation is based on a borrower who has served full time as a employee of an eligible public or private nonprofit child or family service agency and has directly and exclusively provided services to high-risk children who are from low-income communities or has supervised the provision of such services. To receive loan cancellation for being employed at a child or family service agency, a borrower employed in a non-supervisory capacity must be providing services only to high-risk children who are from low-income communities. The borrower must provide services directly and exclusively to high-risk children from low-income communities. The borrower may also be providing services to adults, but these adults must be members of the families of the children for whom services are provided, and the services provided to adults must be secondary to the services provided to the high-risk children.
The types of services a borrower may provide to qualify for a child or family service cancellation include child care and child development services, health, mental health and psychological services, as well as social services. The Department has determined that an elementary or secondary school system or a hospital is not an eligible employing agency.
Head Start Cancellation
The cancellation is based on a borrower who has served full time as a staff member in the educational part of a preschool program carried out under the Head Start Act.
A full-time staff member is someone who is regularly employed in a full-time professional capacity to carry out the educational part of a Head Start Program. The program must operate for a full academic year, or its equivalence, and the borrower’s salary may not be more than that of a comparable employee working in the local educational agency. An authorized official of the Head Start Program must sign the borrower’s cancellation form to certify the borrower’s service. The cancellation rate is 15% of the original principal loan amount—plus the interest that accrued during the year—for each complete school year.
The Head Start cancellation is expanded to include full-time staff members in a pre-kindergarten or childcare program that is licensed or regulated by the State.
Military Service Cancellation
The cancellation is based on a borrower who has served a period of full-time active duty in the armed forces (that is, the U.S. Army, Navy, Air Force, Marine Corps, or Coast Guard), the National Guard, or the Reserves. The service must be in an area of hostilities or an area of imminent danger that qualifies for special pay under Section 310 of Title 37 of the U.S. Code. The cancellation rate for every complete year of qualifying service is 12.5% of the original principal loan amount plus any interest that accrued during the year.
Borrowers may receive military service cancellation of up to 100 percent of the loan in increments of 15 percent (for the first and second years of service); 20 percent (for the third and fourth years of service); and 30 percent (for the fifth year of service).
NOTE - U.S. ARMY LOAN REPAYMENT PROGRAM: The U.S. Army offers a loan repayment program as an enlistment incentive. If a Perkins Loan (or Stafford 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, the student should contact his or her local military recruiting office. This is a recruitment program, not a cancellation, and does not pertain to an individual’s prior Army service.
Volunteer Service Cancellation
The cancellation is based on a borrower who has served as a Peace Corps or AmeriCorps*VISTA (under Title I, Part A of the Domestic Volunteer Service Act of 1973) volunteer. An authorized official of the Peace Corps or AmeriCorps*VISTA program must sign the borrower’s cancellation form to certify the borrower’s service. AmeriCorps volunteers do not qualify for this cancellation unless their volunteer service is with AmeriCorps*VISTA. An AmeriCorps*VISTA volunteer may only qualify for this cancellation if the AmeriCorps*VISTA volunteer elects not to receive a national service education award for his or her volunteer service. The AmeriCorps*VISTA volunteer must provide appropriate documentation showing that the volunteer has declined the AmeriCorps national service education award. Schools apply cancellation for volunteer service in the following increments:
Note: Eligible service performed on or after August 14, 2008 and regardless of whether the cancellation category appears on the borrower’s promissory note. The cancellation rate for each year of qualifying full-time service is 15% of the original principal loan balance for each of the 1st and 2nd years, 20% of the original principal loan balance for each of the 3rd and 4th years, and 30% of the original principal loan balance for the 5th year.
Full Time Fire Fighters
The cancellation is based on a borrower who has served as a full time fire fighter with a Local, State or Federal fire department or fire district.
Tribal College of University Faculty Service
The cancellation is based on a borrower who has served as a full-time faculty member at a Tribal College or University.
Librarian Service
The cancellation is based on a borrower who has served as a full time librarian with a masters degree in library science and who are employed in an elementary or secondary school that qualifies for Title I funding, or in a public library that serves a geographic area that includes one or more Title I schools.
Speech-Language Pathology Service
The cancellation is based on a borrower who is a full-time speech language pathologist with a master’s degree working exclusively with Title I eligible schools.
Other Discharges
Discharge for Death
A cancellation of the remaining balance of any Perkins Loan if the borrower dies. Documentation of death of the borrower includes an original or certified copy of the death certificate, or an accurate and complete photocopy of the death certificate.
Discharge for Permanent Disability
A cancellation of the remaining balance of any Perkins Loan if the borrower becomes totally and permanently disabled. Total and permanent disability is the inability to work and earn money because of an injury or illness that is expected to continue indefinitely or to result in death.
Effective date: July 1, 2008, subject to regulations, except for disability discharge requests based on Department of Veterans Affairs’ determinations.
The HEOA provides for a discharge of a borrower’s Perkins Loan if the borrower is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that:
- Can be expected to result in death
- Has lasted for a continuous period of not less than 60 months
- Can be expected to last for a continuous period of not less than 60 months
In addition, a borrower who is determined by the VA to be unemployable due to a service-connected disability also qualifies for a discharge on his or her Perkins Loan. The Department will issue additional guidance to Perkins loan holders describing the procedures for discharging these loans after working with the VA to identify the appropriate documentation to support a borrower’s eligibility for the discharge.
Discharge for spouses of September 11, 2001 victims
A discharge of the outstanding balance of a Perkins Loan made to the spouse of an eligible public servant. An eligible public servant is a police officer, firefighter, or other safety or rescue personnel, or a member of the Armed Forces, who died or became permanently and totally disabled due to injuries suffered in the September 11, 2001 terrorist attacks. The discharge pertains to loan amounts that were owed on September 11, 2001. There is no refunding of any payments made on a loan prior to the loan discharge date.
QUESTIONS
If you have any questions in regards to the terms and conditions of your Perkins Loan, please feel free to stop by the Bursar’s Office, Accounts Receivable Department in the Administration Building, Room 1006-C or call (504) 280-6506.
Borrowers requiring additional assistance with Student Aid issues may contact the Federal Student Aid Ombudsman at (877) 557-2575 or online at http://www.ombudsman.ed.gov/.
NAME CHANGE OR OTHER IDENTIFICATION CHANGES
In most cases, name and identification changes are managed by the Registrar’s Office for The University of New Orleans, for all past and present students. You will need to bring your new signed social security card with the name change to initiate this request. If you are a current or former UNO employee, you must contact the Human Resource Management Department on the 2nd Floor of the Administration Building (Room 213).
