Federal Perkins Loan Program

The Federal Perkins Loan Office at Western Illinois University is located in Sherman Hall 103. The office open Monday through Friday, 8am-noon and 1pm-4:30pm. If you have any questions, please contact the Billing and Receivables Office at 309-298-1831 or email billings@wiu.edu.

Interest

A Federal Perkins Loan accrues interest from the date the loan first becomes due until it is paid in full. Loans taken out after July 1, 1987 accrue interest at the rate of 5% per annum. Interest accrues against the principal only. Loans taken out prior to July 1, 1987, accrue interest at the rate of 3% per annum.

Grace Period

A grace period is the period of time before the borrower must begin or resume repaying a loan. An initial grace period is one that immediately folllows a period of enrollment and immediately precedes the date repayment is required to begin for the first time. A borrower who has been attending at least half-time is entitled to an initial grace period of nine consecutive months after dropping below half-time enrollment. After each deferment, the borrower is entitled to a post-deferment grace period of six consecutive months.

Billing Statements/Payment Methods

The billing statements are generally mailed on the 15th of each month payable on the 1st of the following month. We have several Payment Methods available for your convenience:

Credit Card Payments

Payments may be made by credit card through the Illinois State Treasurer's Electronic Payment Service. You can process your payment through their web site at http://www.illinoisepay.com using Western Illinois University as the entity name or by calling 1-877-ILL-EPAY (1-877-455-3729). There is a convenience fee assessed for the service.

Authorization of Automatic Withdrawal (form)

Borrowers who have Perkins Loans can have their monthly payment electronically withdrawn from their bank accounts. Please contact the Federal Perkins Loan Office at (309) 298-1295 or email billings@wiu.edu to request the appropriate forms.

Mail-In Payments

Send to:

Western Illinois University
Federal Perkins Loan Office
Sherman Hall 103
1 University Circle
Macomb IL 61455-1390

Deferment

The Federal Perkins Loan program provides for deferment of payments under certain circumstances. During deferment, the borrower is not required to pay loan principal and interest does not accrue. After each deferment, the borrower is entitled to a post-deferment grace period of six consecutive months.

Deferment Explanations:

Student Deferment (form)

A borrower, at an institution of higher education or a comparable institution outside the United States approved for this purpose by the Department of ED, may defer repayment if he or she is enrolled at least half-time at an eligible institution as a "regular student" for the purpose of obtaining a degree or certificate.

Deferment Pending Cancellation (form)

A borrower who is teaching or engaged in other services that qualify him or her for cancellation, the loan deferment is considered to run concurrently with any period for which loan cancellation is granted. See Cancellation for qualifications.

Economic Hardship Deferment (form)

Western Illinois University may grant a deferment due to economic hardship for periods up to one year, for a maximum of three years. To qualify, documentation must be provided to the institution showing the borrower:

  • has been granted an economic hardship deferment under either the FDSL or FFEL programs for the period of time the borrower is requesting economic hardship for his or her Federal Perkins Loan
  • is receiving payment under a federal or state public assistance program
  • is working full-time and earning a total monthly gross income that does not exceed the greater of the monthly earnings of an individual earning the minimum wage described in the Fair Labor Act of 1938 or an amount equal to 100 percent of the poverty line for a family of two as determined in accordance with section 673(2) of the Community Service Block Grant Act.
  • receives a total monthly gross income that does not exceed twice the amount specified in the previous paragraph and, after deducting the borrower's monthly payments on federal postsecondary loans, has a remaining amount of income that does not exceed the amounts specified under that provision, is working full-time and has a federal educational debt that equals or exceeds 20 percent of the borrower's total monthly gross income and the difference between the borrower's adjusted gross income minus such burdens are less than 220 percent of the amount calculated under the minimum wage and poverty line requirements listed above.
  • is working full-time and has a federal educational debt burden 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 greater of #3; or
  • is serving as a volunteer in the Peace Corps.

Unemployment Deferment (form)

A borrower is eligible to defer payments on principal, and interest does not accrue for any period not to exceed three years when the borrower is seeking and unable to find full-time employment.

Internship/Residency Deferments (Oct 1, 1980-July 1, 1993)

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.

To obtain this kind of deferment, a borrower must provide the institution with specific evidence.

To qualify for a deferment in an internship required for state licensing, the borrower must provide the institution with the following certifications:

  • A statement from an official of the appropriate state licensing agency that successful completion of the internship program is a prerequisite for its certification of the individual for professional service or practice.
  • A statement from the organization offering the internship program certifying that a person must have a bachelor's degree to be admitted into the internship program and the borrower has been accepted into its internship program.
  • the anticipated dates on which the borrower will begin and complete the program.

Deferment Exclusive to Perkins Loans made before July 1, 1993, and NDSL's made between Oct 1, 1980 and July 1, 1993

A borrower may defer repayment 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;
  • on full-time active duty as a member of the National Oceanic and Atmospheric Administration Corps (for Perkins Loans made before July 1, 1993, only);
  • A Peace Corps or ACTION (under Title I, Part 1, of the Domestic Volunteer Service Act of 1973) volunteer OR comparable service;
  • a volunteer under Title I, Part A, of the Domestic Volunteer Service Act of 1973 (ACTION programs);
  • temporarily totally disabled or unable to work because he or she must care for a spouse or other dependent who is also disabled;
  • a working mother (up to 12 months deferment) (for Perkins Loans made before July 1, 1993, only); and
  • a new parent (up to 6 months deferment)(for Perkins Loans made before July 1, 1993, only).

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.

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.

Concurrent Deferment

Schools must automatically defer loans during periods when the borrower is performing service that will qualify him or her for loan cancellation. Schools may grant concurrent deferment for up to 12 months at a time. Concurrent deferment is available to all loans made under the Federal Perkins Loan Program, regardless of disbursement date and contrary provisions on the promissory note.

Temporary Total Disability Deferment

An affidavit from a qualified physician is required to prove disability. A borrower is temporarily totally disabled if he or she is, due to illness or injury, unable to attend an eligible school or to be gainfully employed during a reasonable period of recovery.

A borrower may receive deferment for temporary total disability of a spouse or dependent if the spouse or dependent requires continuous nursing or other services from the borrower for a period of at least three months due to illness or injury.

Military Deferment (form)

A borrower who is serving on active duty or performing National Guard duty during a war, military operation, or national emergency may defer principal and interest on Perkins, NDSLs, and Defense Loans that were first disbursed on or after July 1, 2001. Active duty is defined by Federal Regulations as full-time duty in the active military service of the United States as defined in 10 U.S.C. 101(d)(1), but does not include traiing or attendance at a service school. This deferment may not exceed a three year period.

Forbearance

The temporary cessation of payments, allowing an extension of time for making payments or temporarily accepting smaller payments than previously were scheduled. Interest continues to accrue and will be billed during the forbearance. Justification for forbearance includes if the borrower's monthly Title IV loan repayment obligation equals or exceeds 20 percent of the borrower's monthly gross income.

Cancellation

A borrower may have all or part of his or her loan (including interest) cancelled for engaging in teaching, public service, service in the Peace Corps or ACTION, or service in the military.

Teacher Cancellations (form)

Eligibility for teacher cancellation is based on the duties presented in an official position description, not on the position title. To receive a cancellation, the borrower must be teaching full-time in a public or other non-profit elementary or secondary school system and must be directly employed by the school system. There is no provision for canceling Perkins Loans or NDSLs for teaching in post-secondary schools.

  • Teacher Shortage: Teachers of math, science, foreign language, bilingual education or any other field of expertise where the state education agency determines there is a shortage of qualified teachers. The borrower must be employed full-time for a complete academic year in a public on other nonprofit elementary or secondary school and the majority of classes taught must be in the borrowers field.
  • Special Education: Special Education teacher includes teachers of infants, toddlers, children, or youth with disabilities. Must teach full time in a public or other nonprofit or secondary school system.
  • Teaching in low-income schools: Borrowers are eligible for loan cancellation for full-time teaching in qualifying elementary or secondary schools listed each year by ED as serving low-income families. A borrower who is teaching in an eligible low-income institution that does not qualify in a subsequent year as a low-income institution is eligible to continue receiving cancellation for services in that institution.

Employment Cancellations

  • Nurse and medical technicians providing health care services: The institution may cancel up to 100 percent of a borrower's Federal Perkins made on or after July 23, 1992, for full-time employment as a licensed practical or registered nurse or other individual who is licensed by the appropriate state agency to provide nursing services. A medical technician is also eligible for cancellation if he or she is working in such health-care fields as therapy, dental hygiene, medical technology, or nutrition and has been certified, registered or licensed by the appropriate state agency in the state in which he or she works. A medical technician is someone who assists, facilitates, or complements the work of physicians and other specialists in the health-care system. (Employment Form)
  • Employees of public or private nonprofit child or family service agencies: Borrowers are eligible for this cancellation if they provide or supervise the provision of services to high-risk children who are from low-income communities and the families of those children. (Employment Form)
  • Qualified Professional Provider of Early Intervention Services: A borrower may receive up to 100 percent cancellation on the outstanding balance of his or her loan as a qualified professional provider of early intervention services. The borrower must be employed in a public or other nonprofit program under supervision by the lead agency as authorized in section 632 of the Individuals with Disabilities Education Act. (Employment Form)
  • Law Enforcement Officers: The borrower must be employed full-time as a sworn law enforcement or corrections officer or a person whose principal responsibilities are unique to the criminal justice system at an eligible employing agency. An eligible employing agency is a publicly funded local, state or federal law enforcement or corrections agency with principal activities pertaining to crime prevention, control, or reduction or the enforcement of criminal law. (Employment Form)
  • Service in Head Start Program: A Federal Perkins Loan borrower is eligible for cancellation of his or her loan for service as a full-time staff member in a Head Start program if the program operates for a complete academic year or its equivalent and the borrower's salary does not exceed the salary of a comparable employee working in a local educational agency of the area served by the program. (Employment Form)
  • Volunteer Service: Federal Perkins Loan borrowers are entitled to cancellation for service as a volunteer under the Peace Corps Act and the Domestic Volunteer Service Act of 1973.
  • Military Service: Federal Perkins Loan borrowers are eligible for military service cancellation on completing a full year (12 months) of service on active duty in an area of hostilities or imminent danger. Borrowers who serve as members of the branches of the U.S. Army, Navy, Air Force, Marine Corps, or Coast Guard may qualify for cancellation for service in areas of hostilities that qualify for special pay under Section 310 of Title 37 of the U.S. Code. (Employment Form)
  • Death Cancellation: The outstanding loan principal plus all accrued interest and penalty charges are considered canceled when proof of a borrower's death, such as an official copy of the death certificate is provided.
  • Disability Cancellation: The outstanding loan principal plus all accrued interest and any penalty charges may be canceled at the request of the borrower if the lending institution determines the borrower has become permanently and totally disabled. Permanent and total disability is defined as the inability to work and earn money because of a medically determined impairment, if impairment is expected to continue for an indefinite period or to result in death. (Disability Form)

Default

The failure of a borrower to make an installment payment when due or to comply with other terms of the promissory note or written repayment agreement.

Billing & Receivables
Sherman Hall 103/106
Macomb IL 61455
Phone 309.298.1831
Fax 309.298.2032
Email: billing@wiu.edu