Once your loan(s) go into repayment, Kent State University will manage your account at the Perkins Loan Collection Department located in the Bursar's Office, Room 131 Michael Schwartz Center, PO BOX 5190, Kent OH 44242. The office phone number is?330)672-2626. However, you will receive statements from our billing agent, University Accounting Service (UAS) located at 200 S. Executive Dr., PO Box 932, Brookfield, WI, 53008 (800) 999-6227. Any questions or problems you may have will be directed to our office.

GENERAL INFORMATION

Loan Terms

Payments on Federal Perkins Student Loans, Nursing Loans, and Charles E. Schell Loans are made directly to the University or our billing agent, University Accounting Service (UAS). You, the borrower, are responsible for paying the principle and interest that accrues on your loan beginning 9 months after the date that you cease to be a less than half-time student at an institution of higher education. Interest will accrue from the beginning of your repayment period. Kent State University will report the amount of your installment and the amount of your loan to three major credit bureaus. Your first payment will begin in the tenth month after exiting the institution and will end after the completion of your payments, according to your repayment schedule. Your payments may be extended or shortened due to special circumstances, periods of deferment, or cancellation benefits. If you feel you qualify, contact one of our Student Loan Specialists at the Bursar's Office. We will help in any way that we can.

Good Credit

Maintaining a good credit rating is important. A credit rating could make the difference in a bank's decision to loan you money. Always make your monthly payments on time. We recommend you pay by the 21st of the preceding month in order to allow enough time for payments to post to your account. If at any time you find you are not able to make a scheduled payment, know there are options available to avoid default. We offer several types of financial deferments. Refer to "Are you Eligible for Deferment?" All financial deferments use the same form. Simply select the deferment criteria you may be eligible for, print the form, and mail it to the Bursar's Office, PO Box 5190, Kent, OH 44242-0001.  Once processed, you will receive a letter acknowledging eligibility. Always keep in contact with one of our Student Loan Specialists in the Bursar's office. They can help you maintain your credit rating.

Collection of Defaulted Student Loans

Failure to make scheduled payments by the due date, and/or failure to submit appropriate deferment, cancellation, or forbearance forms in a timely manner may result in the default of your loan.  Default status is reported to three major credit bureaus contracted by Kent State University. Once your loan is 30 days past due, penalty/late charges are applied up to 20% of the monthly payment amount. Collection costs will be assessed once the loan reaches 120 days past due. These costs could exceed 40% of your loan amount and cover the expenses associated with recovery. In addition, transcript holds will be placed preventing access to your transcripts and future Title IV aid could be denied. In order to comply with Due Diligence outlined by the U.S. Department of Education, your account may be assigned to an outside collection agency. You may be able to avoid these additional charges by contacting a Student Loan Specialist in the Perkins Loan Collection Department at the Bursar's Office?330)672-2626.

Credit bureaus contracted by Kent State University:

Trans Union
200 Spring Lake Cove
Jackson, MS 39208

Equifax
PO BOX 144717
Orlando, FL 32814

Experian
PO BOX 9558
Allen, TX 75013



Deferment of repayment

A deferment will prevent principal and interest from accruing while your loan(s) are eligible.  However, if you have a past due balance not covered by a deferment, you are responsible for paying up to date. If you have more than one loan from more than one school, you must submit a form for each school. It is your responsibility to submit forms on time. Failure to do so will result in continued billing.

Financial Deferments

You are eligible for deferment of repayment under certain conditions. During periods of some deferment types, principal and interest are not due. However, some types of Hardship Deferments require interest to be paid throughout the deferment period. If you should find your financial situation is unmanageable and you need an alternative method to repay your loan, we offer many solutions:

• Unemployment Deferment 
  
• Economic Hardship Deferment
  
• Forbearance Deferment
  
• Hardship Deferment

• I understand that I must, without exception, report any of the following changes to Kent State University Student Loan Office at 330-672-2626:?If I withdraw from school, transfer to another school; drop below half-time status; join military service, Peace Corp, or Vista.?I must notify Kent State University Bursar's Office if my name or address should change (for example, due to marriage). 
  
  
• I understand that when I graduate or withdraw from Kent State University, I must arrange for an exit interview by calling (330)672-2626.
  
  
• I understand that the Annual Percentage Rate of 5% will be the FINANCE CHARGE based on the unpaid principle balance, and will begin to accrue nine months after I cease to be enrolled as at least a half-time student. 
  
  
• I understand that cancellation may be granted for certain types of elementary or secondary school teaching;?full-time nurses and medical technicians; full-time police and correction officers; full-time Head Start staff members.   I also accept the responsibility to inform the school of such status. 
  
  
• I understand that upon making a properly documented written request to the school, I may defer my loan (1)during any period that I am enrolled and attending at least half-time at an eligible school; enrolled and attending a graduate fellowship program approved by the Secretary of Education; enrolled and attending a rehabilitation training program for disabled individuals approved by the Secretary; enrolled (2)for a period (not to exceed three years) during which I am seeking but unable to find full-time employment; (3)for a period (not to exceed three years) during which I am experiencing an economic hardship as determined by the school.?I am also eligible for deferment while serving in a medical internship or residency program.
  
  
• I understand that if I fail to repay any loan as agreed, the total loan may become due and payable immediately and legal action may be taken against me. 
  
   
• I understand that I will promptly answer any communication from Kent State University regarding this loan.
  
  
• I understand that I may prepay at any time and that future interest will be reduced by making such payments.
  
  
• I understand that if I cannot make payments on time, I must contact the Kent State University Bursar's Office Student Loan Department to make payment or deferment arrangements.
  
  
• I authorize Kent State University to contact any school which I may attend, to obtain information concerning my student status, my year of study, my dates of attendance, my graduation or withdrawal, my transfer to another school, or my current address. 
  
  
• I understand if I default on my loan, I may request a one time Rehabilitation option. Upon completion of rehabilitation, all credit bureaus will be instructed to remove the default from my credit history.
  
  
• I understand that if I dispute the terms of my loan in writing and the University does not resolve the dispute, I may contact the Student Loan Ombudsman's office by calling (877)557-2575.
  
• I understand that my Federal Direct Perkins Loan status will be reported to the three national credit bureaus monthly. 
  
  

Definitions you should know as a loan holder:

Borrower  The person who signs the promissory note.

Cancellation  Canceling part or in full of original loan balance.

Consolidation  A federally guaranteed program that allows you to combine student loans into one repayment plan.

Credit Bureaus  Organizations that maintain records on your financial history. They report your information to lenders, employers, and other businesses.

Default  Failure to repay a student loan according to the agreed upon terms.

Deferment  A limited time during which those eligible do not have to make loan payments.

Delinquent Overdue on one or more payments on a loan.

Entrance/Exit Interview  a counseling session about Federal loans including Federal Perkins, Nursing, and Schell Loans. An entrance interview is required at the time you sign a promissory note.  An exit interview is required at the time you leave school.

Forbearance  An arrangement whereby the lender may delay the repayment of a student loan because of financial hardship.

Grace Period  Period of time before you must begin making payment on a student loan.

Hardship  A period of financial difficulty that may allow you to delay repayment of a loan or to decrease monthly payments.

Repayment  The act of paying back part, or all, of your loan before payment is due.

Promissory Note  A legal document that you sign promising to repay your loan. It lists the conditions under which you're borrowing and the terms under which you agree to pay back the loan.

Deferments

Perkins and Nursing loans are eligible for deferments depending on the terms of your promissory notes. Deferments may be granted if you return to school and enroll for at least half-time status.  A deferment form must be certified through the appropriate Registrar's office of the attending college. Deferment forms may be acquired through Kent State University Collections department, or review our web page "Are You Eligible for Deferment?"