Perkins Loan Program
- The Perkins Loan program is a federal loan program governed by the provisions of 34 CFR, part 674. The Federal Perkins Loan Program provides low-interest loans to financially needy students attending institutions of higher education to help them pay their educational costs.
- Loans from this fund are awarded to qualified students as part of the overall financial package offered to students through the Office of Student Financial Planning. Once the awarded loan has been accepted the student will receive an email at the Drake email address from ECSI, an agency who manages the loan funds on behalf of Drake University. The email will contain instructions on completing the promissory note and entrance counseling for the loan. The Student Accounts office will receive notification from ECSI once these requirements are completed.
- Under the provisions of the Truth in Lending Act (TILA) – Regulation Z, the borrower has three business days to rescind the decision to receive a loan. Loan funds will not be disbursed to the student account until these three days have elapsed.
Repayment of Perkins Loans
- Once the borrower has left Drake University, he/she will be contacted by ECSI to complete the exit counseling requirement. A hold will be placed on the Drake student account preventing the release of transcripts and diplomas until the exit counseling requirement has been satisfied.
- ECSI will also contact the borrower to set up repayment arrangements. Terms of repayment are governed by the promissory note. Repayments must be made directly to ECSI and may not be sent to Drake University.
- Perkins Loans are eligible for inclusion in a federal loan consolidation. To learn more, go to http://www.loanconsolidation.ed.gov/.
- As a federal loan program, there are forbearance, deferment, and cancellation options available to qualifying borrowers. Forbearances and deferments extend the repayment period for the loan. Cancellations reduce the balance that is owed on the loan. Contact ECSI for complete information on available options and an application.
- ECSI may be contacted at http://www.heartlandecsi.net (school code G3) or (888) 549-ECSI.