Student Accounts – Guide for Student Borrowers
Truman State University – Federal Perkins Loan Program
Information Concerning Student Borrowers’ Rights, Responsibilities, Benefits, and Billing
The Students Accounts Section of the Business Office is the central billing and collection office for Truman State University. Once you are no longer in attendance at Truman– whether by graduation, withdrawal, or a change in status to less than half-time, the grace period begins on the loan. Although Truman is the lender, we now have a servicer, ECSI, handling our payments and daily operations. All correspondence and payments for Perkins and Nursing Loans are to be directed to ECSI at 1-888-549-3274 or www.heartlandecsi.com.
If you have an address or name change, it is your responsibility to notify ECSI at 1-888-549-3274 or www.heartlandecsi.com.
Repayment begins at the end of your initial grace period, which is determined by the regulations in effect at the time the loan was granted. The grace period will be either six or nine months following your separation from the loan-granting campus. A nine-month grace period applies to loans granted prior to October 1, 1980 and after June 30, 1987. A six-month grace period applies to loans granted from October 1, 1980 to June 30, 1987.
An explanation of conditions to defer repayment will follow in a later section, along with information on the six-month post-deferment grace period.
Federal Perkins Loans have a maximum ten-year repayment period. A $40 minimum monthly payment is required for loan borrowers with a disbursement after October 1, 1992, who have no outstanding principal or interest owing on any Perkins, Direct, or Defense loans.
The length of repayment is determined by the total amount borrowed, the interest rate and the repayment amount. Review your promissory note(s), any addendum, or the repayment agreement section of your exit interview form.
During the grace period, you will receive periodic reminders of when your repayment begins. Your repayment amount will include the principal and interest needed to repay your original loan amount, and the accruing interest over the life of your loan, if payments are received as scheduled.
You are expected to make payments promptly. Late charges are assessed for late payments. Payments must be made between the 10th and the 20th day of the month. Late fees are assessed on payments received after the 20th day of the month. Should your payment not arrive by the 20th, a reminder notice will follow. Mail your payments as early as possible to ensure timely credit.
If you wish to accelerate repayment of your loan (repay ahead of schedule), you may do so by making payments larger than the amount required. Any additional amount remitted on a current account will be applied to the principal. Accelerating repayment shortens the repayment term and reduces the total interest that you will be required to pay.
Allowing your account to become delinquent can seriously affect your personal credit rating. The University must withhold services to you if you become a defaulted borrower. Should you default, requests for transcripts will not be honored. Should you attempt to register at another school, your registration may be blocked and you will not be eligible for any additional Federal Title IV aid, including Federal Family Educational Loans, William D. Ford Federal Direct Loans, Federal Supplemental Educational Opportunity Grants (SEOG), Federal Pell Grants, and Federal College Work Study.
If repayment is not made according to the terms of the contract, regulations also allow for the referral of delinquent accounts to a collection agency and if necessary to an attorney for litigation. As the borrower, you will be held responsible for all of the resulting penalty, collection, and litigation costs as provided in the promissory note.
As of July 1, 2000, any borrower who has a loan in default may seek rehabilitation. To request your loan be rehabilitated, contact ECSI a1-888-549-3274 or www.heartlandecsi.com. To qualify for rehabilitation, you must first request it, then you must make 9 consecutive, on-time monthly payments.
Once a loan is rehabilitated, it will be returned to normal billing status, any report of default made to credit bureaus will be removed, and Title IV eligibility will be restored.
A loan may only be rehabilitated one time.
The following provisions are explained on your promissory note. The date on which you signed for your loan disbursement(s) dictates which provisions apply specifically to you. You must refer to your promissory note to determine eligibility for benefits and the maximum length of time of deferment.
Deferment for Perkins and National Direct Student Loans (NDSL) disbursed on or after July 1,1993:
- Half-time or greater enrollment
- Approved graduate fellowship study, including graduate or postgraduate fellowship-supported study (such as a Fulbright Grant) outside the United States
- Approved rehabilitation training programs for disabled individuals
- Seeking and unable to find full-time employment
- Economic hardship as defined under the regulations
- Engaged in certain types of service that qualify for cancellation of the loan, including law enforcement or correction officer, Peace Corps or ACTION Program volunteer, military service in a designated area of hostility, nurse or medical technician providing direct patient health services, teacher in a Head Start Program or other state approved pre-kindergarten or child care program, teacher in a designated low-income school, teacher of special education, teacher in a shortage field, provider of early intervention services, or provider or supervisor providing services to high-risk children from low-income communities, fire fighters, tribal college or university faculty, librarian in eligible Title I areas, speech-language pathologist working with Title I schools, and attorneys employed in a Defender Organization.
Deferment for Perkins loans disbursed before July 1, 1993 and on or after July 1, 1987 and NDSL disbursed before July 1, 1993 and on or after October 1, 1980:
- Half-time or greater enrollment
- Eligible internship or residency program
- Peace Corps or ACTION Program volunteer or full-time volunteer for a tax-exempt organization comparable to Peace Corps or ACTION
- Member of the U.S. Army, Navy, Air Force, Marines, or Coast Guard or a member of the National Guard or the Reserves serving a period of full-time active duty in the armed forces
- Officer in the Commissioned Corps of the U.S. Public Health Service
- Temporarily totally disabled or unable to work because the borrower is required to care for a spouse or other dependent who is so disabled
Additional deferments for Perkins loans disbursed before July 1, 1993 and on or after July 1, 1987:
- On full-time active duty as a member of the National Oceanic and Atmospheric Administration Corps
- Up to one year if the borrower is a mother of a preschool-age child, working or returning to work at a salary that is no more than $1.00 above the minimum hourly wage
- Up to six months if the borrower is pregnant or caring for a newborn or newly adopted child
Deferment benefits on NDSL disbursed prior to October 1, 1980 or Defense loans prior to July 1, 1972 can be obtained by contacting Student Accounts.
If you received a Perkins Student Loan before July 1, 1993, you may be eligible for additional deferments. They are for borrowers who are in one of the following categories as of October 7, 1998 and are not retroactive:
- Rehabilitation Training
- Graduate or Post-Graduate Fellowships
- Unemployment Hardship
- Economic Hardship
A deferment form must be filed with ECSI at least once a year for each year you are in an eligible status. Failure to file forms in a timely manner is equivalent to not making timely payments and can negatively affect your credit rating.
The 1998 Amendments of Higher Education changed eligibility requirements for loan cancellation effective October 7, 1998. Loan cancellations previously eligible only for loans awarded after July 1992 are now available to all Perkins borrowers. You may be eligible if you are working full time in the following fields: nursing, medical technician fields, teachers of mathematics, science, foreign language, bilingual education and special education, and as a law enforcement officer (enforcing criminal law).
Some restrictions may apply. Check your promissory note or contact ECSI for eligibility information and appropriate forms.
Cancellation is also available for the following situations:
Teaching or other related services of an educational nature in:
- a federally designated low income school
- special education including teachers of infants, toddlers, children or youth with disabilities
- a federal Head Start Program, staff member in a pre-kindergarten or child care program licensed or regulated by the state, or other state approved pre-kindergarten or child care programs
- a shortage field as determined by the state education agency
- full-time active duty in an area designated for hazardous duty pay
Peace Corps or ACTION Program volunteer (applies only to new Perkins Loan borrowers after July 23, 1992)
Early Intervention – a provider of early intervention services in a public or nonprofit program under public supervision.
Child/Family Service – a provider or supervisor in a child or family service agency providing services to high-risk children from low-income communities
Law enforcement or correction officer
Nurse or medical technician
Attorneys employed in a Defender Organization
Tribal College or University faculty
Librarian – with a master’s degree in library science, employed by a Title I School or services a Title I School
Speech-Language Pathologist – with a master’s degree working exclusively with Title I Schools.
Employment must be full-time for any/all cancellation categories.
If you are working in a position which you believe will qualify for cancellation benefits, a form requesting postponement/deferment of repayment must be filed at the start of the school or service year. Cancellation forms must be submitted at the completion of the school or service year. Failing to file forms in a timely manner is equivalent to failing to make timely repayment and can result in late fee assessment and can also negatively affect your personal credit rating.