Perkins Loan Billing & Collections

As a Federal Loan recipient, borrowers are required to maintain at least half-time enrollment during the fall and winter semesters. Perkins Loan borrowers have a nine-month grace period after they stop attending school at least half-time to either begin repayment or obtain a deferment or forbearance on the loan. A borrower's grace period will begin the day after they cease to be enrolled at least half-time. Repayment will begin the day after the grace period ends.

It is very important for borrowers to understand that the start date of their nine-month grace period will be back-dated to the last day that they were enrolled at least half-time. Therefore, if they do not meet the enrollment requirements for Fall and they did not attend at least half-time in the previous Summer, then the start date for their grace period will be back-dated to the last day of the winter semester. This will result in the borrower losing several months of their grace period and they will begin repayment sooner than expected.

Inform us as soon as possible when not attending at least half-time during the fall and winter semesters because you could lose some of your grace period. Reporting your last day of attendance earlier allows you more time to prepare for repayment.

For more detailed information regarding Perkins Loans, please visit Federal Student Aid (FSA).

As you enter your grace period, you are required by federal regulation to complete an exit counseling session. The session will show you how to manage your student loans after college. A hold will be placed on your OU account until exit counseling has been completed. You can complete Perkins Loan Exit Counseling online through University Accounting Service.

*Satisfying exit counseling for Perkins Loans does not satisfy exit counseling for Direct Loans, and vice versa.

One of the reasons why borrowers default on their loans is because they fail to update their contact information and they never receive billing notifications. Borrowers are required to update contact information with UAS and Oakland University.

Oakland University students may submit their address and phone number changes by logging into a secure area online through Oakland University's secure MySAIL system and using the Personal Information Link. You can also give us your email address and cell phone number so that we may provide you with updates and changes on your account. If you are unable to update your contact information online thru MySAIL, please contact the Perkins Loan Administrator at (248) 370-2298.

It is very important that you also change your contact information with UAS through their secure online system.

*Updating personal information at UAS for a Federal Perkins Loan does not update personal information for a borrower's Federal Direct Loans and vice versa. For Direct Loans, a borrower must contact their Direct Loan Servicer.

It is your responsibility to make loan payments even if you do not receive a statement.

You may review your statement and make a payment online at uasconnect.com. You will need a password to access your UAS account online. If you do not already have a password, you will need to enroll in this program. You may also call the UAS Interactive Voice Response system at (844) 870-8701. The system operates 24-hours a day, seven days a week.

If not making payments using UAS's electronic payment portal, checks or money orders must be made payable to Oakland University and mailed directly to University Accounting Service, LLC at PO Box 5879, Carol Stream, IL 60197-5879. Remember to include your account number on all payments and correspondence.

Most Federal Perkins Loan borrowers also have Federal Direct Loans and do not realize that all of the federal loans can be consolidated. Through consolidation, all of your student loans are combined into one loan meaning that you will have only one combined loan payment for all of your student loans. Your combined loan payment is usually less than payments made to each loan individually and the repayment period may be extended up to 30 years. Please be aware that you will no longer be eligible for grace, deferment, or cancellation benefits once you consolidate your loans. However, income-based and income-driven repayment plans will be available. Also, a longer repayment period means more interest is paid. For more information or to apply for loan consolidation, please visit studentaid.gov.

If you need to postpone your loan payments, there are forbearance and deferment options available.

Please be aware that we cannot approve any forbearance, cancellation, or deferment benefits once your account has been placed with a collection agency. The only benefit available once in collections is rehabilitation.

Rehabilitation is a mutually agreed upon repayment agreement between a defaulted borrower and Oakland University. Rehabilitation requires the borrower to make nine consecutive monthly payments, as determined by the agreement, to be removed from default status and to clear the negative credit previously reported to the national credit bureaus.

You can obtain eligibility information on the various types of deferments and forbearances and the forms to apply for these benefits online at UAS. If eligible for a deferment, borrowers are granted an additional 6 months grace period after the deferment ends and accrual of interest is suspended during the entire deferment and grace period. These additional benefits are not allowed during a forbearance and the interest that accrues will be due at the end of the forbearance period and added to your first billing statement.

If you are enrolled at least half time at another institution and would like to defer your payments, you will need to submit an In-School Deferment Form to the Registrar's office at the school you are currently attending. You will need to submit a deferment request annually. Please be aware that a borrower who re-enrolls before the 9-month grace period expires can be placed back into an enrolled status and no deferment form is needed. If the borrower begins enrollment after the grace period expires, they need to complete a deferment form.

To apply for a forbearance or deferment, please complete and return the appropriate deferment or forbearance form. This form may be downloaded by logging in to your UAS account at uasconnect.com. Please return the form and the necessary documentation to Oakland University’s Student Business Services, Attn: Perkins Loan Administrator, North Foundation Hall Rm 114, 318 Meadow Brook Rd, Rochester, MI 48309-4454. You will be notified by mail if your request has been approved. Please note that a deferment of another federal student loan automatically makes you eligible for a Perkins Loan deferment. You only need to submit a copy of the deferment approval to UAS.

If you do not qualify for a deferment or forbearance and you are unable to bring/keep your account current, please contact us at (248) 370-2298 to discuss other payment arrangements.

You can also obtain eligibility information on cancellations online. To apply for a cancellation, please complete and return the appropriate form with all required documentation. This form may be downloaded by logging in to your UAS account at uasconnect.com. Please return the form and the necessary documentation to University Accounting Service, 4099 McEwen Rd, Suite 700B, Farmers Branch, TX 75244. You will be notified by mail if your request has been approved.

Federal Perkins loans are reported to credit bureaus. If you make payments or file for deferment or forbearance on time, your credit report will reflect a positive history. Likewise, late payments will result in negative credit reporting. If you are over 30 days past due on your Perkins Loan, you can have your negative credit reporting reversed through rehabilitation.

What are the consequences for defaulting on a student loan?*

• Collection costs
• Credit report damage (7-year minimum)
• Wage garnishment
• Seizure of federal and state tax refunds
• Legal action in federal district court
• Ineligible for federal financial aid
• Increased auto insurance premiums (based on credit score)
• Rejection on mortgage loans
• May lose state occupational license
• May have difficulty obtaining car loans
• May be unable to rent an apartment
• May be turned down for jobs

*Source: select excerpts from notes from the Department of Education's conference on federal student aid November 2010.

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