Perkins Loans
The Federal Perkins Loan Program offers loans to be repaid within 10 years with an interest rate of five percent. It is a student loan that must be repaid. The interest rate for a Perkins Loan is fixed at 5%. Payments begin nine months after the student leaves Guilford or falls below half time status. While you are in school at least half time and during your nine month grace period, interest will not accrue and no payments are required. Deferments may be granted with no interest to be charged for up to three years for a variety of postgraduate study and working experiences. All students receiving this aid are required to complete a Perkins promissory note.
The student will be billed on a monthly basis for the Perkins Loan. It is the student's responsibility to make sure that the billing agent has your current address. Our billing agent here at Guilford College is:
Campus Partners
P0 Box 2902
Winston Salem, NC 27102
1(800) 334-8609
Late payments are subject to late fees and will be reported to a national credit bureau. Consult your promissory note for a complete listing of your rights and responsiblities.
Under extinuating circumstances you can have your Perkins Loan deferred or you can obtain a forbearance or even qualify for loan cancellation. Below you will find information on the above options.
Deferments
Under certain circumstances, a borrower is entitled to have the repayment of the Perkins loan deferred. During deferment, the borrower is not required to pay loan principle and interest does not accrue. After each deferment, the borrower is entitled to a post deferment grace period of six consecutive months. Please contact Campus Partners for more information.
In-School Deferment - a borrower may defer payment of a Perkins Loan if she/he is enrolled at least half time in an eligible school.
Seeking full-time employment - A borrower may defer payment on a Perkins loan up to three years, regardless of disbursement date and contrary provisions on the promissory note, if the borrower is seeking and unable to find full-time employment. Schools may determine the documents the borrower must provide to apply for this deferment.
Economic hardship - A borrower is entitled to an economic hardship deferment for periods of up to one year at a time, not to exceed three years cumulatively, if the borrower provides the school with satisfactory documentation.
Forbearance
Forbearance is usually a temporary postponement of payments. The borrower may request an extension of time allowed for making payments or the acceptance of smaller payments than were previously scheduled. Unlike deferment, interest continues to accrue during any period of forbearance.
Schools may grant forbearance to borrowers who are experiencing financial hardship, poor health, or for other acceptable reasons. Schools may grant the borrower forbearance for a period of up to one year at a time. The forbearance may be renewed, but the periods of forbearance collectively may not exceed a total of three years. Please contact Campus Partners for more details.
Loan Cancellation
The Higher Education Act was amended to extend all service cancellations to all Perkins borrowers who were previously ineligible as of October 7, 1998. However, only periods of qualifying service performed on or after October 7, 1998, are eligible for cancellation benefits if the borrower was not previously eligible due to the date the loan was made.