Federal Perkins Loan Program
What is a Perkins Loan

The Perkins Loan is a federally-sponsored student loan program administered by SUNY Cortland in conjunction with the SUNY system offices in Albany .  Unlike the Stafford student loan program, the Perkins program is a “revolving fund”.  The annual loan funds are generated by the monthly payments made during the year by previous SUNY Cortland Perkins borrowers.  Thus, the college has a limited amount of money to lend each year.

The limited funds available are awarded to students based on greatest financial need and timeliness of the FAFSA application.  Therefore, eligibility is not guaranteed year-to-year like the Stafford Loan program; and eligible students may not receive an award because of limited funding.

All students who submit a FAFSA are automatically considered for this aid program.  Freshman and sophomore level students are more likely to be awarded Perkins Loans because they usually have higher need (due to the smaller Stafford Loan amounts for underclassmen).  Also, each Advisor keeps a record of students who are interested in the Perkins Loan but were not awarded.  The Advisors will award appropriately if additional Perkins funds become available later in the year.  Please contact your Advisor to find out if you are eligible and if you would like to be considered for a Perkins Loan.

What is the Difference Between Perkins and Stafford Loans?

The Perkins Loan is money borrowed from the college, while the Stafford loan is borrowed from a bank or other financial institution.  The Perkins Loan interest rate is fixed at 5%, and no interest is charged until the student goes into repayment (generally nine months after leaving school). 

There are no up-front fees on a Perkins Loan, so the student’s account will be credited with the entire amount borrowed.  Like a Stafford Loan, Perkins Loans are generally awarded for the entire academic year; so the loan will split in half for the fall and spring semesters.  For example, a $2,500 Perkins Loan will pay $1,250 for the fall semester and $1,250 for the spring semester.  Approved Perkins Loans appear as an offset to billed charges on the student’s billing statement, like other aid programs.

The Perkins Loan allows the student a nine-month grace period after separation from the college, versus six months for the Stafford Loan.  The grace period is the period of time allotted before repayment begins on the loan.

What Do I Need To Do If I Am Awarded a Perkins Loan?

There are requirements that a student must satisfy before a Perkins Loan will be allowed to pay to their account.  Once a student has accepted his/her award package on BannerWeb, a list of three Perkins follow-up requirements will be posted to his/her BannerWeb Financial Aid Status screen.  Two of these requirements will be completed on-line, and the third must be completed by a visit to the Financial Advisement Office.

Requirement #1:  All Perkins Loan borrowers are required to complete a Perkins Loan “Entrance Interview” before receiving funds.  There is a link on BannerWeb to complete this function on-line at www.mapping-your-future.org.  The Financial Advisement Office will receive an electronic notice when the student has successfully completed this process.

Requirement #2:  The second web-based requirement is to accept the Perkins Loan Rights & Responsibilities and Truth-in-Lending Statement.  This BannerWeb page keeps a cumulative total of the amount a student has borrowed in Perkins at SUNY Cortland.  Each student must read and accept the terms of repayment and acknowledge the amount borrowed.  Once this function has been completed, the student’s BannerWeb account status is updated automatically. 

Requirement #3:  The final step requires the student to come into the Office of Financial Advisement to sign the Master Promissory Note (MPN) for their Perkins Loan.  If a student is a continuing borrower who has previously borrowed a Perkins Loan from SUNY Cortland, then he/she will not need to sign a note again for the new aid year.

Repayment of the Perkins Loan

All Perkins Loan Borrowers are required to be “Exited” upon completion of their undergraduate degree program, transfer to another school, or any reduction in enrollment to less than six (6) undergraduate credits at SUNY Cortland.  This process is necessary for us to transfer the proper repayment information the Student Loan Service Center (SLSC) in Albany , NY , which collects all Perkins payments for SUNY.  

The "Exit” process is performed by visiting the Office of Financial Advisement to complete the “Exit” paperwork during a student’s final semester at Cortland.  If a student does not complete this process in the office, a certified mailing will be sent to the student with the “Exit” paperwork enclosed, including instructions for completing the on-line “Perkins Exit Interview” at www.mapping-your-future.org.

The Student Loan Service Center is responsible for all billing and collections of Perkins Loan payments.  The SLSC also handles all requests for deferment or forbearance, and processes loan forgiveness applications for teachers in low-income schools.  The SLSC can be contacted at (518) 525-2626 or slsc@uamail.albany.edu.