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Home » Administration » Business Office » Loan Department |
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Contact Information:
Loan Department
414 East Clark Street
Slagle Hall Room 207
Vermillion, SD 57069
phone: 605-677-6620
fax: 605-677-5055
loandept@usd.edu
Last Modified: 02/22/06
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- Federal Perkins student loans
- Loans made under this program include Federal Perkins and National Direct/Defense Student Loans (NDSL). This is a low-interest federal loan program, awarded to needy undergraduate and graduate students by the Financial Aid Office, to help cover the costs of a post secondary education.
The school must give priority to students with exceptional financial need. At present, the interest rate on these loans is 5% and begins 9 months (6 months for NDSL) after the borrower drops below half time student status, graduates or separates from the University. Repayment is made to the University and is calculated to enable full repayment within 10 years (program minimums of $30 or $40 per month, determined by your promissory note).
- Change of address: Until your loan is repaid, you must keep the Loan Department informed of any address changes.
- Repayment of loan: The total amount of the loan support received under this Program, plus accrued interest, is repayable over a ten-year period which begins immediately after the 9 month (6 month for NDSL) grace period expires. Questions pertaining to your loan repayment terms or schedules should be directed to the Loan Department.
- You may prepay all or any part of the loan principal and accrued interest at any time before it becomes due.
- Penalty Charges: When a payment is not received by its due date, you will be assessed a $1.00 late charge on your next billing statement. After that, you are assessed $3.00 a month for each month that a payment remains past due. After a late fee is assessed, it will be paid first from the next payment received.
Failure to make payments: Payments made by you and other borrowers are the primary source of Perkins funds for current students. Also, your failure to make payments could jeopardize your school's eligibility to continue loaning Perkins funds to current and future students. Therefore, if you fail to remit payment as set forth in your repayment schedule, the school is required to implement aggressive collection efforts, including the use of collection agents, litigation and credit bureaus.
Deferment: Numerous deferments are allowed on these loans. Deferment is the temporary cessation of principal (and in some cases interest) payments while you meet certain program criteria. However, the types of deferments available to you depend on whether your loan is a Perkins or NDSL and on what date the loans were disbursed to you or your University account. To determine which deferments may be available to you, please review the dates of your promissory notes and then find those dates in the Perkins Deferments chart.
Cancellation: Cancellation of portions of your outstanding principal balance can be obtained, for working in certain occupations and service areas. Which cancellation entitlements are available to you, depend on whether you received Perkins Loans or NDSL, and the dates those loans were disbursed to you or your University account. To determine which cancellations may be available to you, review your promissory notes along with the Perkins Cancellation information.
- DISCLAIMER: The information that is provided on this website concerning student loans is only intended to give general information. The final authority on any policies or procedures for the loan program are University Policies and federal regulations given by the U.S. Department of Education or the U.S. Department of Health and Human Services.
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