Did you know?
- Federal Perkins loans are reported to credit bureaus. If you make payments or file for deferment or forbearance on time, your credit report will reflect a positive history. Likewise, late payments will result in negative credit reporting. If you are over 30 days past due on your Perkins Loan, you can have your negative credit reporting reversed through rehabilitation.
- Inform us as soon as possible when not attending at least half-time during the fall and winter semesters because you could lose some of your grace period. Reporting your last day of attendance earlier allows you more time to prepare for repayment.
- Your federal financial aid award history is available online through the National Student Loan Database (NSLDS).
- It's your responsibility to make loan payments even if you don't receive a statement.
- If you need to postpone your loan payments, there are forbearance and deferment options available.
- A deferment of another federal student loan automatically makes you eligible for a Perkins Loan deferment. You only need to submit a copy of the deferment approval to UAS.
- Your account is considered past due the first day after the bill is due and is in default once you are 240 days past due. Late charges will be assessed once your account becomes past due.
Perkins Loan Billing & Collections
A Federal Perkins Loan is a low-interest loan for eligible students. The current interest rate on a Perkins Loan is 5%. The loan is funded by the federal government and Oakland University. Oakland University is the lender of the Perkins Loan, but University Accounting Service (UAS) is the billing service. For information on applying for a Perkins Loan, visit the Office of Student Financial Services.
As a Federal Loan recipient, borrowers are required to maintain at least half-time enrollment during the fall and winter semesters. Students have a nine-month grace period after they stop attending school at least half-time to either begin repayment or obtain a deferment or forbearance of the Perkins Loan. A borrower’s grace period will begin the day after they cease to be enrolled at least half-time. Repayment will begin the day after the grace period ends.
It is very important for borrowers to understand that the start date of their nine-month grace period will be back-dated to the last day that they were enrolled at least half-time. Therefore, if they do not meet the enrollment requirements for Fall and they did not attend at least half-time in the previous Summer, then the start date for their grace period will be back-dated to the last day of the winter semester. This will result in the borrower losing several months of their grace period and they will begin repayment sooner than expected.
For more detailed information regarding Perkins Loans please visit:
The Federal Student Aid provides an interactive Financial Awareness Counseling Tool (FACT) to assist borrowers with federal loan debt management. Borrowers are also able to enter private loan information so that they can get help managing their total loan debt.
Before you receive your Perkins Loan, you are required by federal regulation to complete an entrance counseling session. The session will show you how to manage your student loans, both during and after college. You can complete Perkins Loan Entrance Counseling online through Mapping Your Future*.
Before you graduate or drop below half-time attendance, you are required by federal regulation to complete an exit counseling session. The session will show you how to manage your student loans after college. A hold will be placed on your OU account until exit counseling has been completed. You can complete Perkins Loan Exit Counseling online through University Accounting Service*.
*Satisfying entrance or exit counseling for Perkins Loans does not satisfy entrance and exit counseling for Direct Loans, and vice versa.
Once you stop attending or graduate from Oakland University, the nine-month grace period on your Perkins loan begins. After the grace period, your loan goes into repayment.
Oakland University uses a billing service provider, University Accounting Service (UAS), to handle billing and collections on all Perkins Loans. UAS allows you to obtain and update account information and make payments online, apply for deferments or forbearance, consolidate your loans, and obtain other benefit information.
Oakland University also uses two outside collection agencies to collect on Perkins Loans: General Revenue Corporation and Williams & Fudge, Inc. The total amount of your loan plus collection costs and late penalties will become due immediately, and eligibility for any benefits (deferments, forbearance, consolidation, etc.) will be lost, once your account is placed with a collection agency. Therefore, it is always a good idea to call us (or UAS) for help. Once a borrower’s account is sent to collections, the borrower needs to contact the collection agency from whom they received their collections notice.
One of the reasons why borrowers default on their loans is because they fail to update their contact information and they never receive billing notifications.
You may review your statement and make a payment online at www.uasecho.com. You will need a password to access your UAS account online. If you do not already have a password, you will need to enroll in this program. You may also call the UAS Interactive Voice Response system at (800) 999-6227. The system operates 24-hours a day, seven days a week.
You may also be interested in loan consolidation. Through consolidation, all of your student loans are combined into one loan meaning that you will have only one combined loan payment for all of your student loans. Your combined loan payment is usually less than payments made to each loan individually and the repayment period may be extended up to 30 years. Please be aware that you will no longer be eligible for grace, deferment, or cancellation benefits once you consolidate your loans. Also, a longer repayment period means more interest is paid. For more information or to apply for loan consolidation, please visit https://studentaid.ed.gov.
You can find more information on federal student loan repayment options online.
If you are enrolled at least half time at another institution and would like to defer your payments, you need to submit your In-School Deferment Form to the Registrar’s office at the school you are currently attending. You will need to submit a deferment request annually. Please be aware that a borrower who re-enrolls before the 9-month grace period expires will be placed back into an enrolled status. If the borrower begins enrollment after the grace period expires, they need to complete a deferment form.
You can obtain eligibility information on the various types of deferments and forbearances and the forms to apply for these benefits online at UAS. You can also obtain eligibility information on cancellations online. You must complete a Cancellation Form to apply for cancellation of your Perkins Loan. Send the form to the address listed at the bottom of the form. Borrowers have a six-month grace period following a deferment to begin repayment. Borrowers enter repayment immediately after a forbearance period has ended.
To apply for a forbearance or deferment, please complete and return the appropriate deferment or forbearance form. This form may be downloaded from www.uaservice.com. Please return the form and the necessary documentation to Oakland University's Student Financial Services, Attn: Prathima Satish. You will be notified by mail if your request has been approved. If you do not qualify for a deferment or forbearance and you are unable to bring/keep your account current, please contact us at (248) 370-2298 to discuss other payment arrangements.
Once a borrower is past due on their loan, they may take advantage of rehabilitation. Rehabilitation is a mutually agreed upon repayment agreement between a defaulted borrower and Oakland University. Rehabilitation requires the borrower to make nine consecutive monthly payments, as determined by the agreement, to be removed from default status and to clear the negative credit previously reported to the national credit bureaus.
A hold will be placed on your OU account. Online transcripts, diplomas or other statements of record will be withheld and students will be ineligible to enroll and/or continue to be enrolled in future semesters until the obligations have been fulfilled.
- Collection costs
- Credit report damage (7-year minimum)
- Wage garnishment
- Seizure of federal and state tax refunds
- Legal action in federal district court
- Ineligible for federal financial aid
- Increased auto insurance premiums (based on credit score)
- Rejection on mortgage loans
- May lose state occupational license
- May have difficulty obtaining car loans
- May be unable to rent an apartment
- May be turned down for jobs
*Source: select excerpts from notes from the Department of Education’s Conference on Federal Student Aid November 2010.
BUYER BEWARE! Unscrupulous Companies Offer Default Assistance - Herb Weisbaum NBC News contributor
Students may contact University Accounting Service or Oakland University’s Perkins Loan Administrator for questions regarding their Perkins Loan.
University Accounting Service
PO Box 932
Brookfield, WI 53008-0932
Student Financial Services
ATTN: Perkins Loan Administrator
North Foundation Hall Rm 120
318 Meadow Brook Rd
Rochester, MI 48309-4454