Bethany Lutheran College in Mankato, MN

FEDERAL PERKINS LOAN PROGRAM

STATEMENT OF RIGHTS AND RESPONSIBILITIES

Your Federal Perkins Loan is a debt and must be repaid.  Accepting this loan will not affect your eligibility for other financial aid funds since your total award is reviewed if a revision is to be made.  The loan may be used only for educational expenses and must be repaid.  It is important that you understand your rights and responsibilities, which are outlined below.  The annual maximum amount a student may borrow is $5,500and the undergraduate aggregate amount is $27,000.  

1.        I understand that I must report any of the following changes to the Financial Aid Office, Bethany Lutheran College, 700 Luther Drive, Mankato, MN  56001, (800) 944-3066.  

a.        If I withdraw from school  

b.        If I transfer to another school.  

c.        If I graduate. 

d.        If I change to less than half-time student status. 

e.        If my address changes. 

f.         If my name should change.

2.        I understand that when I graduate or withdraw from Bethany Lutheran College I must attend an exit interview arranged by the Financial Aid Office. 

3.        I understand that my first quarterly payment will be due after my nine-month grace period, which begins when I cease being enrolled as at least a half-time student. 

4.        I understand that my payments will be due quarterly (every three months).  The minimum quarterly payment will be $120.00.  It may be more if the amount borrowed is sufficient to require larger payments.  The maximum length of time for repayment is ten years. 

5.        I understand that the annual percentage rate of 5% will be the finance charge based on the unpaid balance and it will begin to accrue nine months after I cease to be enrolled as at least a half-time student. 

6.        I understand that under current Federal Legislation, cancellation of this loan plus interest will be granted for certain types of elementary or secondary school teaching; for military service in areas of hostilities; for full-time staff members in Head Start; full-time law enforcement of corrections officer; and in the event of death or permanent disability.  I understand that Bethany Lutheran College must be informed of such status. 

7.        I understand that if I enter military service, Peace Corps, VISTA, or service comparable to either, become an officer in the Commissioned Corps of the U.S. Public Health Service, serve an approved internship which is required to begin professional practice, or if I return to at least half-time study at an accredited institution of higher education, I may request that payments on my loan be Deferred. 

8.        I may also Defer repayment of my loan if I enter full-time service with the National Oceanic and Atmospheric Administration Corp; am unemployed because I have to provide care for a disabled dependent; am a mother with preschool age children and I am entering or re-entering the work force and my wage rate is not more the $1.00 above the minimum hourly wage.  I understand that limited deferment is available for pregnancy, caring for a newborn baby, and caring for a child immediately after it was placed through adoption. 

9.        I agree to contact the Financial Aid Office at Bethany Lutheran College if I cannot make a payment on time. 

10.     I understand that if I fail to repay my loan as agreed, the total loan may become due and payable immediately and legal action could be taken against me.  If I allow my loan to become more than 180 days past due, my loan will be considered in default for two or more years, it may be assigned to the U.S. Government for collection. 

11.     I agree to promptly answer all communication from Bethany Lutheran College regarding this loan. 

12.     I understand I may prepay my loan at any time.  Prepaying will reduce interest.

13.     I authorize Bethany Lutheran College to contact any school, which I may attend to obtain information concerning my student status, my years of study, my dates of attendance, graduation or withdrawal, my transfer to another school, or my current address.  This authorization is in effect until my loan is paid in full. 

14.     I understand Bethany Lutheran College will report this loan to a National credit reporting bureau.

15.   It is possible to consolidate Perkins Loans into a Direct Consolidation Loan if borrowers include at least one Direct   Loan or Federal Family Education Loan (FFEL) in their request. Perkins Loans cannot be included in a Direct Consolidation Loan by themselves. Furthermore, all Perkins Loans consolidated into the Direct Loan Program will be included in the unsubsidized portion of the Direct Consolidation Loan.

Regulations state that we need to remind you that you have 14 business days to cancel this loan and return the proceeds to your lender.

Bethany Lutheran College uses University Accounting Service, as their billing service and you will be receiving information from them concerning the repayment of your loan.

 If during your repayment you develop student loan problems that cannot be resolved through normal customer service, you may want to contact the U.S. Department of Education Office of Student Financial Assistance Programs Ombudsman Office.