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Federal Perkins Loan Program

Federal Perkins Loans are low-interest, long-term loans made through the University to help undergraduate and graduate students pay post secondary educational costs.  Students must be enrolled at least half time to be eligible for the Perkins Loan.   The Perkins Loan is a federal loan (Department of Education), administered by PSU on a revolving loan fund basis, (i.e. while the fund is making loans to students, it is also receiving repayments of earlier loans). 

Interest Rate

The annual interest rate charged on the unpaid balance of the Federal Perkins Loan is 5%.

How to  Apply!

To apply for a Federal Perkins Loan, file the Free Application for Federal Student Aid (FAFSA) for the Federal Financial Aid programs and complete a PSU data form (available through the PSU Financial Assistance or their website).   When completing the FAFSA, PSU's school code is 001926.  Priority consideration is given to those who file a FAFSA by February 15 and whose financial aid file is complete by March 15.

Grace Period

"Grace Period" is the period of time before the borrower must begin or resume repaying a loan.  The grace period is a period of time (generally nine months) that begins immediately after the borrower ceases to be enrolled as at least a half-time student.

Loan Repayment

Repayment of the Federal Perkins Loan begins when the grace period ends.  Eligibility for a grace period depends on the type of loan that you received; consult your promissory note for the specifics of your loan.  At the time a borrower drops below half-time enrollment or leaves school, Pittsburg State University must complete an exit interview during which pertinent information and a repayment schedule are provided to the borrower.  The repayment schedule contains the number of payments, interest rate, and date of the first payment and frequency of payments. Loan payments are due on the 15th day of each month.  Monthly payment amount depends on the amount borrowed.  The repayment period may not exceed 10 years.

Loan Payments and Billing

As payments become due, interest accrues on your unpaid balance at an Annual Percentage Rate of 5%.  Payments are based upon the total amount borrowed and are subject to a minimum of $40 per month.

PSU has contracted with Education Computer Systems, Inc. (ECSI), an outside billing & processing company.  PSU is still the lender for your loan.  For your convenience, ECSI offers the following payment options.

  • Automated Direct Payment (ACH) (first, tenth, fifteenth or twentieth of the month).  There is no charge for the processing of automated direct payments.
  • On-line Credit Card/Debit Card payment.  There is a nominal fee for this service.
  • Personal Check/Money Order-payable to Pittsburg State University.

Mail checks to:

Pittsburg State University

c/o ECSI

181 Montour Run Road

Coraopolis, PA  15108-9408

For any questions regarding your account, contact an ECSI customer service representative by:

  • Phone 1-888-549-3274
  • E-mail
  • Live Internet Chat

ECSI contact information can be found at https://www.ecsi.net/bwr/contacts.html

Borrowers may access their account information at http://ecsi.net  The school code for PSU is 5L.

Deferments and Forbearance

Under certain circumstances, students can receive a deferment or forbearance on their Federal Perkins Student Loan, as long as the loan is not in default.  During an authorized period of deferment, no interest accrues on the loan.  During an authorized forbearance, interest continues to accrue, however, and the student is responsible for paying the interest.  For more information on deferment and forbearance options, borrowers should contact ECSI at (888)549-3274.

Borrowers may access the forms for deferment (Request for Deferment Form), cancellation (Request for Cancellation Form), and forbearance/hardship/unemployment deferment (Request for Forbearance/Hardship/Unemployment Deferment Form) at the ECSI website listed below.

http://ecsi.net

If you have questions regarding your eligibility for any of the above deferments, forbearance or cancellation, you may contact ECSI or our office at (620)235-4163.

Total and Permanent Disability

Borrowers who become totally and permanently disabled may qualify for cancellation of this loan. Permanent and total disability is the inability to work and earn money because of an impairment expected to continue indefinitely or result in death. An application for total and permanent disability must be filed, including any support documents as stated by the university. In addition, a doctor's affidavit that the borrower is 100% disabled is required.

The form that needs to be completed by the borrower and the borrower's physician can be viewed and printed at the following website:

http://www.ed.gov/offices/OSFAP/DCS/forms/disable.pdf

Pittsburg State University requires the following information for the processing of a total and permanent disability request.

  • Completed total and permanent disability form.
  • Copy of your current social security disability status.
  • Copies of the medical records showing the type of disability and the date of onset.

Mail the above information to:

                Pittsburg State University

                Cashiers and Student Accounts

                1701 South Broadway

                Pittsburg, KS  66762

After receiving the application, the Perkins loan department will determine whether the application is viable. At that time, the account will be assigned to the US Department of Education (DOE). From that point on, Pittsburg State University no longer holds the note for this account.

The DOE will monitor the account for three years before determining whether the account will be cancelled. If at any time the borrower is able to work or receive money to attend school, the DOE will resume collection on this loan.

Social security disability does not guarantee Perkins Loan cancellation.

Loan Rehabilitation

Pittsburg State University has established a loan rehabilitation program for defaulted Federal Perkins Loan borrowers.  Borrowers may only utilize the program one time. A loan is considered in default when a payment is late. A defaulted loan will be considered rehabilitated after the borrower makes 9 consecutive on-time monthly payments, as determined by Pittsburg State University. You must contact our office to set up the rehabilitation.

The benefits of successful loan rehabilitation include:

  • Request is sent to credit bureau to remove default from credit history
  • Loan is returned to regular repayment status
  • Borrower regains balance of benefits and privileges of promissory note as applied prior to default
  • Collection costs are capped at 24%
  • Borrower re-establishes Title IV student financial assistance eligibility

How to apply:

  • Borrowers must request loan rehabilitation
  • Call or send written request
  • A Loan Rehabilitation Agreement must be negotiated, approved and executed before the loan can be rehabilitated

 A defaulted loan may be rehabilitated one time only!

 

Important Information

You must contact ECSI or our office if:

  • You have a change in enrollment status (dropping below half-time enrollment, leaving PSU, or returning to PSU).
  • You have a change in name, address or phone number.
  • You need to request a deferment or postponement.  These forms can be accessed and printed from the ECSI website on the forms page.
  • You are unable to make your scheduled payments.

 

Cashiers and Student Accounts Office, Pittsburg State University, Pittsburg, KS  66762

Phone: 620-235-4164  Fax: 620-235-6056  Email: cash@pittstate.edu