Long-Term Student Loan Programs

If you received a long-term student loan while attending the University, you will want to be sure that you are familiar with the terms and conditions of your loan program.  Refer to the promissory note and other loan documentation that you received when you agreed to borrow the money.

Health Profession Student Loan (HPSL) and Institutional Loan Borrowers:

For assistance, please contact a Billing and Payment Services account representative as listed below.

Federal Perkins Loan Borrowers:

A summary of the Perkins Loan terms and conditions is listed here.  Please contact a Billing and Payment Services account representative (listed below) for additional assistance.

• Interest
• Grace Period
• Billing
• Deferment
• Forbearance
• Cancellation
• Default
• Collection Agencies
• Account Consultants

Interest (Perkins)

A Federal Perkins Loan calls for interest to accrue from the date that the loan first becomes due until it is paid in full. Loans taken out after July 1, 1987 accrue interest at the rate of 5% per annum. This means that interest accrues against the principal only.

Generally, loans taken out prior to July 1, 1987 accrue interest at the rate of 3% per annum.

Grace Period (Perkins)

A grace period is a period of time where principal payments are not due and interest is not accruing against the loan.

The Federal Perkins Loan allows for an initial grace period of nine (9) months. The period begins following your separation from UC Berkeley. A separation occurs if you graduate (even though you may continue your education at Berkeley), transfer, take some time off of school, or fall below half-time enrollment.

i.e., You graduate in May 2003. The records will show that you separated from Berkeley in June 2003. Your 9 month grace period runs until March 2004. Interest begins to accrue in March 2004 and your first bill becomes due 3 months later.

The initial grace period re-news if the entire 9 months is not fully used up. Additionally, if the initial grace period is used up, a new grace period of six (6) months is granted following any deferment period.

Billing (Perkins)

UC Berkeley uses a billing servicer to bill for our Federal Perkins Loans. Currently we use Affiliated Computer Services- (ACS), which is located in Lombard, Illinois. You may review your loan activity by accessing the ACS website. You may be billed quarterly or monthly and payments are due on the 1st . You can also make your loan payments via ACH (Automated Direct Debiting) of your checking account; you must contact ACS to set up this option.

Deferment (Perkins)

The Federal Perkins Loan program provides for deferment benefits. Deferments temporarily postpone loan payments until a later date due to certain conditions being met. During this period interest does not accrue and payments are not due.

There are many ways you can qualify for a deferment. Please consult your promissory note or contact the Billing Services Office with your questions.

A deferment is a benefit; therefore, you must apply for it and receive subsequent approval. Failure to properly apply for a deferment can disqualify you from future benefits and cause your loan to become immediately due and payable.

Forbearance (Perkins)

A forbearance is a period of time when principal payments are not due but interest is accruing against the loan. There are several ways you can qualify for a deferment. Please consult your promissory note or contact the Billing Services Office with your questions.

Cancellation (Perkins)

The Federal Perkins Loan program provides for cancellation benefits. A cancellation is the forgiving of a portion or the entire loan due to certain terms and conditions being met. Please consult your promissory note or contact the Billing Services Office with your questions.

Default (Perkins)

Your loan is in default if any payment is not made when it is due or you fail to notify the institution of a change in your name, address, or school enrollment status.

When a default occurs, you are not entitled to any additional Title IV Federal Financial Aid, until it is cleared up. Additionally, a default could result in your entire loan being called due and payable together with all accrued interest. A default could disqualify you from being allowed to make payments on your loan, receive deferment, forbearance, or cancellation benefits.

IF YOUR STUDENT LOAN IS PAST DUE, DO NOT IGNORE THE SERIOUSNESS OF THIS MATTER. CONTACT OUR OFFICE AS WE WOULD LIKE TO HELP YOU RETURN TO A CURRENT STATUS. WE HAVE SEVERAL OPTIONS AVAILABLE TO HELP YOU AND SOME OPTIONS MAY NOT REQUIRE YOU TO MAKE A PAYMENT.

Collection Agencies (Perkins)

If the University needs to refer a loan to a commercial collection agency to be resolved, there is a real danger that the resolution could be in the form of adjudication. Such action could increase the loan balance by attorney’s fees, court costs, filing fees, and service of process fees, all in accordance with the original contract.

Billing and Payment Services Account Consultants

Please do not hesitate to contact our office immediately if you are past due on your long-term student loan.

Last Name	UC Contact	Telephone	Email
A – DA	Nick Slater	642-1918	nslater@berkeley.edu
DB – LE	Deborah Ranson	642-5210	dranson@berkeley.edu
LF – SH	Kate Morgan	642-4615	mcbrown@berkeley.edu
SI – Z	David Wetzel	642-5206	dwetzel@berkeley.edu

Once a loan becomes past due 90 days or greater, collection costs may be assessed against your loan at your expense.

This page last updated on July 12, 2007