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Loan Collections

Federal Perkins Loan Program Regulations

  1. CHANGE OF STATUS: You must inform Student Loan Collections at South Dakota State University of any change in your name, address, telephone number and employment or school status.
  2. GRACE PERIOD: Graduate, leave school or fall below half-time enrollment your Perkins loan is placed in a nine-month grace period. Payments are not required during the grace period; however, any payments made during this period will be applied to your principal balance. If you return to school after you have started paying on your account you will receive a six-month grace period when the deferment ends.
  3. INTEREST RATE: Interest will accrue daily after the grace period of 9 months has ended. The interest rate is 5%.
  4. PAYMENTS: A billing statement is sent each month from our billing service, Heartland ECSI, with a due date of the 10th of the month. Checks or money orders should be made payable to Federal Perkins Loan. Please send payments to SDSU Student Loan Collections, Morrill Hall 140, Box 2201, Brookings, SD 57007, seven days prior to the due date. A postmark is not enough-be sure your payment arrives at SDSU by the 1st of the month. You are able to make payments online. Your loans are reported to the credit bureau monthly from the date of disbursement. You must make payments on your loan even if you do not receive a bill or repayment notice. Billing statements are sent to you as a Convenience. All or any of your unpaid loan balance may be paid at any time without penalty.
  5. FEES: Failure to meet a scheduled repayment or timely filing of forms could result in a late fee charge. If you default on your loan a hold will be placed on your academic transcript, loss of eligibility for further financial aid and your loan will be referred to a collection agency with at least 50% additional collection fees.
  6. DEFERMENTS: You can request/complete the following deferments from SDSU and interest will not accrue if granted. Remember to contact the Loan Collection Office at SDSU anytime you cannot make your monthly payment.
    1. Student Deferment enrolled at least half-time. (complete every semester)
    2. Enrolled and attending an approved rehabilitation training program, graduate program or post-graduate fellowship program. (complete every 6 months)
    3. Unemployed or unable to find full-time employment. (complete every 6 months)
    4. Experiencing economic hardship. (complete every 6 months)
    5. Engaged in public service, such as volunteer service under the Peace Corps Act or full-time service in Head Start Program, (complete at the beginning of each year of service)
    6. Pre-Cancellation Deferment Employed full-time in a qualifying field. Will stop billing while you are working full-time to earn the cancellation benefits. (complete at the beginning of each year of eligible employment)
  7. FORBEARANCE: Unable to make loan payments due to poor health, including service in Ameri Corps and delay of payment due to military repayment program. (6-months) Interest will continue to accrue.
  8. CONSOLIDATION: Different loans may be consolidated into one payment by consolidation; however, deferment/cancellation provisions of the Federal Perkins Loan will no longer be available. For information on consolidation, you can go to student loans. You can sign in electronically or get a paper application from the website. You will be able to choose your new lender for this loan. 
  9. LOAN REHABILITATION: You may rehabilitate your defaulted loan by requesting rehabilitation in writing and by making on-time, monthly payments, as determined by the loan collection office, each month for nine consecutive months. If you successfully rehabilitate your defaulted Federal Perkins Loan, you will again be subject to the terms and conditions and qualify for the benefits and privileges of your original promissory note and the default will be removed from your credit history. A defaulted Federal Perkins Loan may only be rehabilitated once. Please check your promissory note for more details.

CANCELLATION: At the end of each year of eligible full-time employment you need to complete a cancellation form to verify the completion of the previous year of full-time employment. Upon receipt of this verification the cancellation will be typically processed as follows: First and second year: 15% of the original loan principal for each year, third and fourth year: 20% of the original loan principal for each year, fifth year: 30% of the original loan principal for each year.

Teacher Cancellations

  1. Full-time teacher in a public or other nonprofit elementary or secondary school, which has been designated as a school with a high concentration of students from low-income families. An official directory of designated low-income schools is published annually, usually in November or December of the current year.
  2. Full-time special education teacher in a public or nonprofit elementary or secondary school system.
  3. A full-time teacher, in a public or other nonprofit elementary or secondary school system, who teaches mathematics, science, foreign languages, bilingual education or any other field of expertise that is determined by the State Department of Education to have a shortage of qualified teachers in that state.
  4. Full-time speech pathologists with a master’s degree working exclusively in Title I schools.
  5. Full-time faculty members at a Tribal College or University.

Employment Cancellations

  1. Service as a law enforcement or corrections officer in an eligible local, state or federal agency. The agency must be publicly funded and its principal activities must pertain to crime prevention, control, or reduction or enforcement of criminal law and your principal responsibilities are unique to the criminal justice system. The applicant must be sworn law enforcement officer or person whose principal responsibilities are unique to the criminal justice system, including public defenders.
  2. Full-time firefighters.
  3. Nurse or Medical Technician: Provide full-time health care services for 12 consecutive months. A medical technician is an allied health professional, working in fields (such as dental hygiene, medical technology and dietician) who is certified, registered or licensed by the appropriate state agency.
  4. Child or Family Service Agency providing services directly to “high-risk” children from “low-income communities”. High-risk children are under 21 who are low-income, have been abused or neglected, have serious emotional, mental, or behavioral disturbances, reside in placements outside their homes or are involved in the juvenile justice system. Elementary or secondary schools and hospitals do not qualify as a child/family service agency.
  5. Early Intervention Provided: Birth to two years of age with disabilities.
  6. Librarians with a master’s degree in library science who are employed in a school served under Title I of the ESEA, or a public library serving a Title I school.
  7. A full-time staff member in a pre-kindergarten program that is State funded and part of the elementary education serving children from birth through 6 years of age. The loan will be canceled at the rate of 15%, per each year of service.
  8. A full-time staff member in a child care program licensed and regulated by the State. The loan will be canceled at the rate of 15%, per each year of service.

Service Cancellations

  1. Military Cancellation: Active duty service in the military in an area of hostility that qualifies for special pay under Section 310 of Title 37 of the U.S. code. Up to 100% of the outstanding principal balance may be canceled at the rate of 15% of the first and second year, 20% the third and fourth year and 30% the fifth year.
  2. Volunteer Service Cancellation: Qualifying service performed as a volunteer under The Peace Corps Act or a volunteer under The Domestic Volunteer Service Act of 1973 (ACTION programs). Up to 70% of the outstanding loan principal balance may be canceled, at the rate of 15% for the first two years of service and 20% for the third and fourth year.
  3. Head Start Cancellation: Full-time staff member in the education component of a Head Start program which is operated for a period comparable to a full school year and which pays a salary comparable to an employee of the local education agency. The loan will be canceled at a rate of 15%, per each year of service.

Death and Disability Cancellation

In the event of your death, your total loan balance would be canceled. The loan Discharge application form must be completed if totally and permanently disabled. The U.S. Department of Education will approve or disapprove the cancellation of the loan due to disability.

STUDENT LOAN OMBUDSMAN: If you dispute the terms of your NDSL or Federal Perkins Loan in writing and Student Loan Collections at South Dakota State University is unable to resolve the dispute, you may seek the assistance of the United States Department of Education’s Student Loan Ombudsman. The Student Loan Ombudsman will review and attempt to informally resolve your dispute. You may contact the Student Loan Ombudsman at 877-557-2575 or student aid.

IF YOU HAVE A STAFFORD LOAN (GSL) and need information, contact Financial Aid at 605-688-4695 or your lender.

Department of Education/Great Lakes: 800-236-4300
ACS: 800-835-4611
Department of Education/Nelnet: 888-486-4722
The Student Loan Corporation: 800-967-2400
Direct Loans: 800-433-3243

National Student Loan Data System Student Access: click financial aid review (on the left side) then click accept and then complete PIN information. It will go directly to loan information. The above website provides information only for Title IV student loans. You can also call the Federal Student Aid Information Center at 1-800-4-FED-Aid or 1-800-433-3243.