Key Points and the Disbursement of Funds Process

Key Points About the Perkins Loan

• It is a federally subsidized loan and no interest accrues nor are any payments due while the borrower is in school.
• Eligibility for a Perkins Loan is based on need as determined from the FAFSA.
• The Financial Aid Services Office at Northwest University awards the loans based on information received from the FAFSA and the Perkins Loan Office manages and oversees the program. This includes the collection of funds once the loan enters repayment.
• Loans are made from the Perkins Fund. This fund is comprised of monies from the federal government and from Northwest University. However, Northwest University is the lender.
• Once a borrower graduates, takes a semester off, or is no longer enrolled at least half time, they begin their nine-month grace period, during which no interest accrues and no payments are due.
• Payments begin at the completion of the nine-month grace period and are paid monthly. Payments are based on a ten-year repayment term with a $40 monthly minimum.
• Payment history is reported to credit bureaus and can impact credit history/scores.
• Borrowers are required to keep the lender (Perkins Office at NU) informed of name and address changes.
• There are several deferment and cancellation benefits available as outlined in the promissory note. It is the sole responsibility of the borrower to apply for these benefits.

The Disbursement of Funds Process

• Borrowers must complete an online entrance interview session (only required once), sign their Master Promissory Note (only required once), and sign a Truth-in-Lending Disclosure Statement (new statement each year).
• Once these documents are signed, the Financial Aid Services Office is notified. The Financial Aid Services Office then confirms that the student does not have any missing financial aid documents.
• The Perkins Loan funds are then disbursed directly on to the student’s account (no check is cut) and an e-mail notice is sent to the student from the Financial Aid Services Office notifying him or her that the funds have been disbursed to the student’s account.
• The student/borrower then has 14 days to change their mind and cancel the loan.
• If the posting of the Perkins Loan funds (or any other financial aid) overpays the student account balance, a refund check is issued to the student.

Please return this signed copy to the Perkins Loan Office.