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At a Glance

Student Rights and Responsibilities under Federal Perkins Loan Program

As a Perkins Loan borrower, you have the following rights:

  • You must be given a copy of the Perkins promissory note when you first borrow. The original note must be returned to you when the loan is paid in full.
  • You must be provided with a disclosure statement before repayment begins. The minimum quarterly payment is $120.
  • You have the right to a grace period before repayment begins. This nine month grace period starts after you leave school or drop to less than half time. You have up to a maximum of ten years to repay. Interest is fixed at 5% and begins to accrue at the end of your grace period.
  • You have the right to consolidate with your other federal loans.
  • Your Perkins loan activity will be reported to a national credit bureau.
  • You have the right to deferment of repayment if you qualify. The conditions that qualify a borrower for a deferment are listed on your promissory note.
  • You may request a forbearance if you are unable to meet your repayment schedule and are not eligible for a deferment. Forbearance means permitting payments to be postponed temporarily allowing either an extension of time or lower payments.
  • Full or partial cancellation may be granted for certain types of elementary or secondary school teaching; certain nursing or medical technician careers providing health care service; certain service careers working for a public or private non-profit child or family service agency for high-risk children from low-income communities; for military service in areas of hostility; for full-time staff member in Head Start; for participation in the Peace Corps or other organizations under the Domestic Volunteer Service Act of 1973; and in the event of death or permanent disability.
  • If you enter the military service, U.S. Public Health Service, National Oceanic and Atmospheric Administration, Peace Corps, VISTA, or comparable tax exempt organization, return to at least half-time enrollment at a higher education institution, enter a professional internship, become temporarily totally disabled or unable to work while providing care for a dependent, or on maternity leave, you may request that payments on a Federal Perkins loan be deferred.
  • Your loan obligation will be cancelled in the event of your death or permanent disability.

As a Perkins Loan borrower, you have the following responsibilities:



  • You must report any of the following changes to the University of Indianapolis, Office of Financial Aid, 1400 E. Hanna Avenue, Indianapolis, IN  46227-3697, phone number 317-788-3217 or 1-800-232-8634: 
    • Withdrawal from school or drop below half time
    • Transfer to another school
    • Change my name, address or telephone number. 
  • The University of Indianapolis uses ACS as their servicer for the purposes of collecting and processing payments and deferments. You must also notify ACS directly of a name or address change by writing to:  ACS, PO Box 7060, Utica, NY  13504 or calling 800-826-4470.
  • When you graduate, you must attend an exit session to review the terms and conditions of your loan and to receive repayment information.
  • You must promptly answer any communication from the University of Indianapolis and ACS regarding your loan and will contact them if you cannot make payments as scheduled.
  • If you are late on a payment, you will incur a $3.00 late fee for every late payment.
  • Default is the failure to make an installment payment when due or the failure to submit timely documentation of eligibility for deferment or cancellation. If you default, the total loan may become due and payable immediately, legal action could be taken and you may be required to pay attorney fees and collection costs, disclosure of default may be made to credit bureaus, cancellation and deferment benefits may be lost and no additional financial aid can be awarded. Your loan will be turned over to a collection agency if there has been no activity on your account for 12 months after the repayment begins.