Federal Perkins Loan (FPLN) is a loan awarded by Montclair State University to students with exceptional need. Perkins Loans carry a fixed interest rate of 5% for the duration of the ten-year repayment period. Award amounts vary depending on financial need and level of available funds. Students must file a Free Application for Federal Student Aid (FAFSA) as part of the application process for a Perkins Loan and demonstrate high financial need.
If you have been awarded a Federal Perkins Loan, you would have signed and returned the Master Promissory Note to the Office of Student Financial Aid (Red Hawk Central), completed the Entrance Counseling and signed the Federal Perkins Loan Disclosure Statement.
Requirements for the Federal Perkins Loan Program
- Enrollment in an eligible school at least half-time in a degree program
- U.S. citizens, Permanent Residents, or eligible non-citizen status
- Satisfactory academic progress ( You must have a passing Grade to keep your Loan)
- No unresolved defaults or overpayments owed on Title IV education loans and grants
- Satisfaction of all Selective Service requirements
Repayment of a Federal Perkins Loan
Repayment of a Federal Perkins Loan begins (9) nine months after a student graduates, leaves school, or drops below half-time status.
- This nine-month period is known as the grace period.
- At the end of the grace period, a borrower must begin repayment and is allowed up to 10 years to repay the Federal Perkins Loan in full.
- The monthly repayment amount is based on the size of the borrower’s debt and the length of the repayment period.
If you cannot make payments on your loan after the nine-month grace period, you may be able to postpone repayment by pursuing deferment or forbearance. Under certain circumstances, a borrower can receive a deferment or forbearance on the Federal Perkins Loan. The loan can also qualify for cancellation under certain unusual conditions. For more information, contact Norma Kuruc at 973-655-4132 or Lynn Wells at 973-655-7593.
Perkins Loan in Default
“Default” in the Federal Perkins Loan Program is defined as “the failure of a student/borrower to make an installment payment when due or to comply with other terms of the promissory note or written repayment agreement. A loan made under the Federal Perkins Loan Program is in default on the first day after a payment is past due.
If an account is in a delinquent or defaulted status, a financial hold is placed on the account. Any request for transcripts, re-admission, diplomas and/or certifications are denied until the delinquency or default has been satisfied.
Prior to a Perkins’s Loan being placed in a Collection Agency, the U.S. Department of Education sends a DRAP letter to the student/ borrower in order to get the student/ borrower back into a repayment schedule. Once the loan account is placed in collection or legal action is pursued by the collection agency, the student/borrower will be liable for all collection and/or attorney’s fees (20% to 40% of the amount placed in collection).
Montclair State University Federal Perkins Loan Service Provider
Montclair State University is pleased to announce that Educational Computer Systems, Inc. (ECSI) will handle the billing for our Federal Perkins Student Loans Program. ECSI is a billing service provider for the college, not a collection agency.
ECSI provides web-based access to your account, allowing you to verify when your payments have been received, update address and phone information, verify account balances, obtain loan payoff amounts, sign-up for electronic billing, and make payments. ECSI provides payment options such as recurring electronic funds transfer and credit card payments (additional fee applies to some e-Check and credit card payments).
With ECSI, you will be billed on the 1st of each month with your payment due on the 15th of the next month. If you are currently in a deferment or grace period, you will receive statements prior to the first payment due date.
If you have questions regarding your statement, please contact ECSI at 1-888-549-3274.
Thank you for your cooperation as we strive to improve our service to you.
Heartland ECSI (Billing Servicer for Perkins Loans only)
100 Global View Drive
Warrendale, PA 15086