Federal Perkins Loans
What is a Federal Perkins Loan?
A Federal Perkins Loan is awarded to students with financial need who are enrolled at least half-time (six credits). Repeating courses may affect the student's eligibility for Title IV aid. (Ex: If a student repeats a previously passed course for a second time, those credits cannot be included in the student's enrollment status.) Title IV aid includes all federal programs.
How do I apply for a Perkins Loan?
Students who have completed a FAFSA by April 15 for the upcoming academic year are given priority consideration. Students accepting Perkins Loans are required to complete an annual Master Promissory Note and Perkins Loan Entrance Counseling. The Perkins MPN is completed electronically through the borrowers Campus Connection. Perkins Loan Entrance Counseling must be completed online at www.mappingyourfuture.org.
Who is the lender?
Minot State University is the lender and the loan is made with government funds. Perkins Loans processed by Minot State University are submitted to the National Student Loan Data System (NSLDS) and will be accessible by guaranty agencies, lenders, and schools determined to be authorized users of the data system.
What is the interest rate?
There is no interest charged as long as the borrower is enrolled in school at least half-time (six credits). Once the loan enters repayment, the interest rate is fixed at 5%.
How and when do I pay this loan back?
You have nine months after you graduate, leave school, or drop below half-time (six credits) before you must begin repayment. This is called your "grace period". Perkins Loans offered by MSU are serviced by the Student Loan Service Center (SLSC) in Fargo, ND. The SLSC has contracted with Educational Computer Systems (ECSI) for additional services such as billing, payments, deferments and cancellations for the Perkins Loan.
Note: Perkins borrowers will receive a disclosure statement from ECSI for each Perkins Loan disbursement they receive from MSU. Disclosure statements remind borrowers of their Perkins Loan debt and provide information on repayment amounts. The disclosure statements are sent via email. Questions regarding the disclosure statements can be addressed to the Student Loan Service Center or Educational Computer Systems (ECSI).
Are there cancellation provisions for the Perkins Loan?
Yes. Borrowers who undertake certain public, military, medical, or teaching service employment may be eligible to have all or a part of their loans canceled. Contact the Student Loan Service Center for information on cancellation provisions.
What steps are necessary to process my Perkins Loan?
- New borrowers of a Federal Perkins Loan must complete a Master Promissory Note (MPN). The MPN explains the terms and conditions of the loan and is your promise to repay the loan. Once you have been notified that you have been awarded a Perkins Loan, log into your Campus Connection to accept the loan and complete the MPN.
- All borrowers are required to complete annual Perkins Loan Entrance Counseling at www.mappingyourfuture.org.