What to Do When You Can’t Pay Your Perkins Loan Bill
The Perkins Loan program is federally-funded with additional funds contributed by the school you are attending. Students may qualify for a Perkins Loan if the FAFSA proves they are in the “exceptional need” category. Funds are distributed by the school, so repayment is made to the school, not a student loan service company or the federal government. It is best to contact the financial aid office of your school for repayment details.
Perkins Loans are granted with a fixed 5% interest rate. Undergraduate students can borrow up to $27,500 and graduates can borrow up to $60,000. Loan repayment amounts are based on the total amount borrowed. For instance, if a student borrowed $4,000 from the Perkins Loan program, they would have monthly payments of approximately $43 for 120 months.
How to Pay the Bill
Details about repayment options are available from the financial aid department of the school issuing the Perkins Loan payment. Perkins Loans are credited to your school account to pay for school costs. Any leftover money is left in the account or issued to the student in check form.
Pay online: Some educational institutions may provide online payment options.
Pay by phone: Contact the financial aid department to make payments by phone during normal school business hours.
Pay by mail: Some schools will work with local payment providers to collect mail payments. In other cases, the school may process Perkins Loan payments directly. It is important to write your account number on your check or money order. Never send cash through the mail.
Pay from your bank: If your bank offers bill pay you can enter the name and address for Perkins loan bill pay. Most bank bill pay programs support one-time and recurring payment options.
Questions About Your Billing Statement or Account?
Have you noticed charges such as late payment fees or collection fees associated with your free Perkins loan? If you have noticed these fees and do not understand what they entail, we suggest you visit the customer resource FAQs. You may also want to call 1-800-872-5327 and speak with a customer service representative.
How the Penalty Fees Work
There are no fees for accepting Perkins Loan monies. There are, however, penalties associated with non-payment.
- Late payment fee: If your payment is not received by the due date a late payment fee is added to your account.
- Collection fee: If your account defaults you will likely be placed in collection status with additional fees added for lawyer and court costs.
I Can’t Make a Payment
It is important to contact your school financial aid department if you can’t make your Perkins Loan payment. The loan department may offer deferment and forbearance options. If loan payments are not received, the school may place a block on your account, which means you’ll be unable to access school records, including transcripts until the total amount is paid in full.
Will They Work With Me to Pay My Bill?
Each school offers different Perkins Loan repayment options. Did your school work with you to reduce the impact of Perkins Loan payments on your budget?