Student Loan Office

Stafford Loans

If you are the recipient of a Stafford Loan awarded through the Financial Aid office, the funds will be sent to the Bursar Office. If you have selected the electronic funds transfer option, the loan monies will be deposited directly into your College account and any refund due to you will be automatically refunded to you. If you have selected the check option, a letter will be sent to you by the Bursar Office requesting you to come to the Bursar Office to endorse the check. Upon endorsement, the check will be deposited into your College account and any refund due to you will be automatically refunded to you. Please remember that you must be enrolled in a minimum of six credits and be enrolled in a degree program in order to be eligible for these funds.

Perkins Loans

Entrance Interviews

If awarded a Perkins loan by the Financial Aid Office, you will be requested to attend an entrance interview at the Perkins Loan Office (Alger 133). At this interview you will be requested to sign the Promissory note and complete other related forms. This interview is mandatory. You will not receive the Perkins loan without completing this process.

The entrance interview normally takes about ten minutes. Please bring the following information:

• Your driver's license or other picture ID.
• The address and phone number of your next-of-kin.
• The addresses and phone numbers of two additional contacts.

Exit Interviews

Federal regulations require that all Perkins Loan borrowers attend an exit interview prior to leaving school. Details about your loan will be discussed at length. Failure to complete an Exit Interview will result in a HOLD being placed on your transcript records. Exit interviews are scheduled near the end of each semester. Please contact the Perkins Loan Office if you are leaving school and an exit interview has not been scheduled.

Cancellation Provisions Available

• Total and permanent disability
• Death
• Full-time employment in a Head Start program
• Full-time law enforcement or corrections officer
• Full-time teacher in a low income school
• Full-time special education teacher
• Full-time provider of early intervention services in a public or non-profit program
• Full-time teacher of mathematics, science, foreign languages, or bilingual education
• Nurse or medical technician providing health care services
• Peace Corps or ACTION programs volunteer
• Bankruptcy
• Service in the US Armed Forces, serving under hazardous duty pay

Loan Deferment Provisions

You may be eligible for FORBEARANCE or DEFERMENT of your Perkins Loan.

Forbearance

If a borrower is willing but financially unable to make the required payments on a Perkins Loan, he or she may request that Rhode Island College grant forbearance. Forbearance is a temporary postponement of payments, an extension of time allowed for making payments, or the acceptance of smaller payments than were previously scheduled. Interest will continue to accrue during any period of forbearance. The borrower must request forbearance in writing, providing documentation that supports the borrower's claim that he or she is financially unable to make payments.

The forbearance is for a period of up to one year at a time. It may be renewed, but the total period of forbearance may not exceed three years. The College is authorized to apply the forbearance retroactively (that is, to begin on an earlier date) if the borrower requests that the school do so and he or she provides adequate documentation to support the request.

Forbearance is granted for the following reasons:

1. If the total amount the borrower is obligated to pay monthly on all Student Financial Assistance (SFA) loans is equal to or greater than 20% of the borrower's total monthly gross income. The borrower must provide the following documentation:
   • evidence of the amount of the most recent total monthly gross income the borrower received and
   • evidence of the amount of the monthly payments the borrower owes for the most recent month on his or her SFA loans. Remember that if a payment is due quarterly you must divide the quarterly amount by three to determine the monthly amount due.
2. If the borrower is in poor health. The borrower must provide the following documentation:
   • Certification by a physician that the borrower is unable to work for a period of time.
3. If the borrower is serving in Americorps.

Deferment

A borrower is entitled to have the repayment of a loan deferred (postponed) under certain circumstances. The promissory note you signed while in school describes many types of deferment and cancellation available under the Perkins Loan program. A borrower must apply for a deferment in writing by using a deferment form.

You may request an unemployment deferment if you are seeking and unable to find full-time employment. The documentation required is either proof that you are receiving unemployment benefits or you are registered with an agency and this agency is working towards finding you full-time employment.

You may request an economic hardship deferment. A borrower is eligible for an economic hardship for the following reasons:

• The borrower has been granted an economic hardship deferment under either the Federal Direct Loan Program or the Federal Family Education Loan program for the period of time for which the borrower is requesting deferment of the Perkins loan.
• The borrower is receiving federal or state public assistance.
• The borrower is working full-time and is earning a total monthly income below the poverty line for a family of two ($10,030 a year).

If you believe you qualify please call us or forward the required documentation to us.

If you do not qualify for any of these forbearance or deferment programs, we will still work with you to help you catch up on your payments. We are willing to make temporary payment arrangements with you. This plan involves monthly payments of a reduced amount over a period of time. Please contact us for details.

The Consequences of Default

• Rhode Island College is required, by Federal Regulation, to report the status of your Perkins Loan to credit bureaus each month. If you become past due, your credit rating will be adversely affected.
• If your loan payment becomes seriously past due, your account will be forwarded to a collection agency for collection. All associated collection costs will be added to your outstanding balance.
• You may not utilize the Cancellation provisions of the Perkins Loan program while in collections or default.
• Your entire balance due may become due immediately.
• You are ineligible for any Federal financial aid while in default.
• Your ability to borrow money (a mortgage loan) for a home may be affected.