Interest/Grace Period

Interest shall accrue at the expiration of your initial nine (9) month grace period at the annual percentage rate of 5% on the unpaid balance, except that no interest shall accrue during any deferment period. All payments made during the grace period are interest free.

Repayment

The first monthly payment will be due ten (10) months from the time you cease to be at least a half-time student and all payments are due in the office by the first of the month. The minimum monthly payment will be at least $40.00 ($30.00 for borrowers who had Perkins Loans prior to July 1, 1993). Because the total amount borrowed must be repaid within ten (10) years after the date on which repayment begins and depending on the amount borrowed, payments may be larger than $40.00/month.

Prepayment

The borrower may prepay all or any portion of the principal plus any accrued interest at any time. If you remit more than the amount due for an installment, the excess will be applied to principal unless you designate it as an advance payment on the next regular installment. Note, if paying in advance, you must remit the total installment amount.

Deferments/Cancellations (Perkins, Nursing and Schell Loans)

The borrower should refer to their promissory notes for the specific deferments and cancellations available to them. All deferment and cancellation privileges are discussed during the exit interview, as well as provided with the loan exit materials. A deferment/cancellation can be processed only after timely remittance of a properly certified deferment/cancellation form and all required supporting documentation. The borrower may lose deferment/cancellation benefits if they fail to file the request on time.