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Georgia College Perkins Loan Program

 

General Information

The Federal Perkins Loan is a federally funded loan intended to assist needy students in financing the costs of post secondary education. It is a long term low interest loan with deferment, cancellation and discharge provisions. Availability is limited and based on repayments from previous borrowers. All correspondence for the Federal Perkins Loan must go through the Georgia College office of Student Loan Collection. A loan is a serious obligation and it is important that you understand your rights and responsibilities as a borrower. Current and updated information is necessary to keep your account accurate. If you need to request forms for Deferment or Cancellation benefits you must do so before the due date of your repayment. As required by the program we report monthly to credit bureaus and collection agencies.

Prom Note

A Prom note is a promise to repay the loan. By signing the prom note, you are agreeing to the rules and regulations set forth by the U.S. Department of Education.

Grace Period

The grace period is nine consecutive months beginning after you cease to be at least a half time student. Interest does not accrue and payment is not due during this period.

Repayment Information

The standard repayment period is ten years, not including any deferment periods. The minimum monthly payment is $40.00 and it may be higher depending on amount of Perkins loan money borrowed. Repayment is made in equal monthly installments and is made directly to the GC Student Loan Collections Department. Repayment begins on the 1st of the month after the nine month grace period following graduation, withdrawal or enrollment less than a half-time.

Payments are considered late if received after the 15th of each month and your account will be assessed late fees. However, if a borrower cannot make the full payment on time, they must contact our department to make arrangements to bring their account current. If a loan becomes delinquent, late fees are assessed to the loan balance. GC may assign loans to an outside collection agency or legal firm for collection in which case the borrower is responsible for all collection costs, attorney’s fees and court costs incurred by GC in collecting the delinquent account.

Payment Information

Payments are due on the 1st of each month to the GC, Student Loan Collections Department. Payments are considered late if received after the 15th of each month and if applicable, you will be charged a late fee.
Phone payments are also accepted for debit and credit cards at (478) 445-4881.

Remitting Payments

Checks should be made payable to "Georgia College". Please include borrower name and either your student ID number or the last four numbers of your social security number on the check. Payments should be accompanied by a payment coupon. If you do not have a payment coupon, you may mail your payment without one and request future payment coupons. Please remember that not having a payment coupon does not excuse you from making a payment. The coupon helps to properly credit your account with your payment. If you do not have a supply of coupons, please contact Student Loan Collections.

Checks should be mailed to:
Georgia College
Student Loan Collections Department
Campus Box 26
Milledgeville, GA 31061

Credit Bureau Reporting

In accordance with federal regulations, all loan information including loan balances and repayment histories are reported to National Credit Bureaus at the time of disbursements and continually reported monthly until the loan is paid in full.

Loan Consolidations

GC does not offer a loan consolidation program. However, borrowers may consider loan consolidation to make repayments of their total loan debt easier. Please understand that if you consolidation your Federal Perkins Loan, you will lose any and all opportunity for the service cancellation provisions. Remember, loan consolidation will negate cancellation benefits.

Deferment Benefits

A deferment allows the temporary postponement of principal payments and in some cases also interest payments while you meet certain criteria. The Federal Perkins Loan program has several deferment provisions which in general include a six month grace period after your deferment ends. Each deferment has different criteria you must meet in order to receive the benefit. Please read the following types of deferments to determine if you may qualify for the benefit. If you believe that you are eligible for a deferment, please follow the instructions under that provision and call us for further instructions. It is the borrower's responsibility to file the request for deferment on a timely basis. Failure to submit the deferment forms by the due date may result in the reporting of past due information to the Credit Bureau on your account. Please remember it is your responsibility to contact our office to apply for a deferment.

A list of eligible deferment forms can be found in the link to forms for Deferment, partial Cancellation, Economic Hardship, Forbearance and Unemployment.

Service Cancelable Deferments

Borrowers who are eligible for a service cancellation may be eligible for a repayment deferment.

This deferment is allowed during the year of qualifying service and or employment and allows the suspension of principal and accruing interest repayments. At the end of the deferment period, borrowers who remain eligible would be able to cancel a portion of the loan and then reapply for another deferment. For more information on these types of deferments, please read the service cancellations section.

Cancellation Benefits

Borrowers may be entitled to have up to 100% of the original principal loan amount canceled if the borrower performs a year of qualifying service and or employment in certain fields of work. A year of service is defined as 12 consecutive months of service; see the exception for teaching services. No repayment amounts can be canceled for services performed prior to the date the loan was disbursed or during the enrollment period covered by the loan. The qualifying service must be performed after receiving the loan. Any payments made by a borrower during a period for which the borrower qualified for cancellation cannot be refunded. Loans may be placed in a deferred status during periods of time while the borrower is performing service eligible for cancellation. Interest does accrue during these periods. Each cancellation provision has different criteria you must meet in order to receive the benefit. Please read the following types of cancellations to determine if you may qualify for the benefit. If you believe that you are eligible for a cancellation, please follow the instructions under that provision and call us for further instructions. It is the borrower's responsibility to file the request for cancellation on a timely basis. Failure to submit the cancellation forms by the due date may result in the reporting of past due information to the Credit Bureau on your account. Please remember it is your responsibility to contact our office to apply for a cancellation.

Rate of Cancellation

The cancellation rate per each completed year of qualifying full time service is:

  • Head Start Cancellation:
    15% of original principal loan amount & accrued interest per year.
  • Military Cancellation:
    12.5% of original principal loan amount & accrued interest per year for up to four years maximum and a maximum cancellation of up to 50% of original loan amount
  • Peace Corps or Americorps*VISTA Volunteer Service Cancellation:
    15% of original principal loan amount & accrued interest per year for first & second years
    20% of original principal loan amount & accrued interest per year for third & fourth years

Maximum cancellation of up to 70% of the original loan amount

  • Other Cancellations:
    15% of original principal loan amount & accrued interest per year for first & second years
    20% of original principal loan amount & accrued interest per year for third & fourth years
    30% of original principal loan amount & accrued interest for fifth year


Updating Personal Information

It is imperative, without exception, that borrowers update the Student Loan Collection Department of any personal information changes. We cannot correspond with you about your Georgia College Federal Perkins loan in a timely basis without a correct and updated address. Updating your address with GC Registrar's Office or on the Banner Registration System will not automatically update your address for GC Federal Perkins loan. Therefore, students are required to contact the Student Loan Collections department by phone or by completing and return to our office the Personal Information Change and or Update form, every time any personal information changes.

Here are some examples of changes in personal information, but not limited to the following:

  • Before withdrawing from school or before transferring to another school
  • When dropping below half-time status
  • When names, address, phone numbers or emails change

Exit Requirements

Every time a student’s enrollment is less than half time, graduates or withdrawals from GC, they must complete an Exit Interview Questionnaire.. It must be completely filled out, signed and returned to Student Loan Collections. If the completed Exit questionnaire is not returned to our office, the student’s GC records are on hold until the proper paperwork is completed.

Interest Information

The annual percentage rate per the terms of the promissory note is computed on the unpaid balance. Interest does not accrue while students are enrolled for at least half-time. However, interest will begin to accrue after a nine month grace period following graduation, withdrawal or enrollment less than half time.

 

 

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