A grace deferment is granted to borrowers who re-enter school before their original grace period ends. Grace deferments are processed for a given “period of time” and renew the borrower’s original grace period.

A student deferment is granted to borrowers who re-enter school after their original grace period ends. Student deferments defer the actual bills for the period in which the borrower is enrolled. Following this type of deferment, the borrower is granted a six-month post-deferment grace period.

We process student deferments (Type S) through the current quarter/semester as long as the borrower submits a deferment form. However, the system will allow a form to be processed up to 18 months in advance. Deferments processed via enrollment data received from the National Student Clearinghouse (NSC) are processed up to a year in advance (through the current academic year).

Economic hardships, unemployment deferments and student deferments (Type S) defer principal and interest and are always followed by a six-month post-deferment grace period.

Forbearance is a loan benefit that allows for the temporary cessation or reduction of loan payments. Forbearance defers the principal for a specific length of time, but the interest continues to accrue on the loan amount. Depending on the payment plan, the interest on the loan may be billed during or at the end of the forbearance period. The time limit for forbearance is 36 months.

Forbearance can be granted under the following circumstances:

If a borrower requests forbearance based on expenses vs. income, he/she must essentially provide supporting documents (including a pay statement) to support his/her expense entries.

In such a case, the total monthly expense is deducted from the gross monthly income. Should the difference be within or less than $200-300 range, or if the expenses exceed the income, forbearance may be granted.

No grace period is offered after the end of the completion of the forbearance period. Regular billing would commence immediately.

As a rule, forbearance cannot be applied during a grace period nor to any post-dated form. There is a three-year time limit for loan forbearance.

No. If the note date is on or after July 1, 1993, a forbearance ("M" deferment) should be processed for a temporary total disability or prolonged illness. Loans with a note date from October 1, 1980 to July 1, 1993 are eligible for a Temporary Total Disability (Type D) for up to three years.

Borrowers are also eligible for this type of deferment if they are caring for a spouse who is temporarily totally disabled. Loans with a note date from July 1, 1987 to July 1, 1993 with a nine-month original grace period are eligible for a temporary total disability for the borrower or a disabled dependent (Type B). A six-month post-deferment grace period will follow a temporary total disability deferment.

A borrower is eligible for an unemployment deferment if he/she is currently unemployed or if the borrower is working part time and actively seeking full-time employment. In the latter case, the borrower is often asked to provide a list of firms where he/she has applied or public/private employment agency which he/she has registered with, including the name of the agency, the address, a contact name and telephone number. The maximum length of deferment for unemployment is three years.

A borrower could qualify for economic hardship for up to three years under the following circumstances:

1. The borrower has submitted proof of deferment (for economic hardship only) for other loan programs (i.e. Stafford or Federal Direct Loan).
2. The borrower has verbally requested an economic hardship on his/her Perkins loan based on deferment of other loan programs (i.e. Stafford or Federal Direct Loan).
3. The borrower is receiving federal or state public assistance such as Aid to Families with Dependent Children, Supplemental Security Income, and/or Food Stamps.
4. The borrower is working full time (at least 30 hours/week) and his/her total monthly gross income (TMGI) is less than the federal minimum wage or an amount equal to 150% of the federal poverty line applicable to the borrower's family size. If a borrower is not a resident of a State identified in the poverty guidelines, use the poverty guidelines applicable for the 48 contiguous states.

Note: To determine the poverty line applicable to the borrower's family size, go to http://aspe.hhs.gov/poverty.

No. Interest does not accrue during the deferment or the six-month post grace period.

A military deferment may be granted to borrowers who are serving on an active duty during a war or other military operation, or a national emergency, or performing qualifying National Guard duty during war or other military operation or a national emergency.

The borrower may download the appropriate military deferment form from our Web site and/or send us a copy of his/her military orders. The borrower may also submit a written statement from his/her commanding officer or personnel officer.

If the borrower is ineligible for this type of deferment, we will not be able to fulfill his/her request. However, we strongly encourage the borrower to include a duly filled forbearance form if he/she is temporarily unable to meet his/her repayment obligations.

A Type Z deferment removes principal and interest for loans that are eligible for cancellation. Type Z deferments cannot be processed during a borrower’s grace period since he/she is allowed the full benefit of their grace period.

Type Z deferments cannot be processed during a borrower’s grace period since he/she is allowed the full benefit of their grace period.

Borrowers who are currently in jail are eligible for the same types of deferments as other borrowers. Typically, economic hardships and forbearances are used.

Cancellation is the reduction of loan principal in exchange for providing service in an eligible field (see service fields below). The borrower is not responsible for repaying the portion of the loan that is cancelled or forgiven.

• Full-time teaching in a field of expertise (e.g. science, math).
• Full-time employment as a nurse or medical technician.
• Full-time employment in a public or private non-profit child or family service agency.
• Full-time employment as a qualified professional provider of early intervention services in a public or other non-profit program.
• Full-time employment as a fire fighter with a local, state, or federal fire department or fire district.
• Full-time faculty member at a Tribal College or University.
• Librarian with a master's degree in library science who is employed at an elementary or secondary school that qualifies for Title I funding or at a public library that serves a geographic area that includes one or more Title I school(s).
• Full-time speech-language pathologist with a master's degree who is working exclusively with Title I eligible schools.
• Volunteer services in the Peace Corps Act or Domestic Volunteer Service Act of 1973 (VISTA).
• Employment as a law enforcement, corrections officer, or public defender.
• Full-time educational staff member at a Head Start program or at a pre-kindergarten or child-care program that is licensed or regulated by the state.
• Active duty service in the military in an area of hostilities that qualifies for special pay under section 310 of Title 37 of the U.S. Code.

Additional requirements apply. Please see the information below.

Campus Partners determines a school’s eligibility by consulting the Federal Register, an annual guide that identifies low-income student schools (where low-income students exceed 30% of the school’s total enrollment). Each state is given a quota of schools to be listed, and not all schools having high concentrations of students from low-income families will may be listed therein.

Click here to see if your school qualifies.

The borrower may download a cancellation form from our Web site or call our office at (800) 334-8609 to request a form. If you are a Modified or Full Service customer, click here to download a form.

Applying for a cancellation is a two-step process. A loan cancellation cannot be granted before the borrower has completed their specified length of service.

For example:
Your borrower has been hired to teach for a year in a field that qualifies for cancellation. For a list of qualifying fields, click here.

Step 1: At the beginning of the qualifying year, the borrower should complete a deferment form in anticipation of cancellation.

Step 2: At the end of his or her year of employment, the borrower can apply to have his or her loan principal cancelled for that year.

The Campus Partners Web site provides help for borrowers filling out cancellation forms. Please go to "Cancellation Form Instructions."

A period of 32 hours worked in a single week is usually considered full-time. If the borrower works less than 32 hours in a single week, and his or her employer certifies that they are considered full-time, the borrower may still qualify for cancellation benefits.

The total percentage cancelled on a loan depends on the type and length of service that is being provided. To get the total percentage amount and the percentage rate, borrowers should refer to their promissory note or call Campus Partners at (800) 334-8609.

If there is an asterisk next to the field of service in section A of the cancellation form, additional documentation must be submitted along with the form. If an additional documentation is required for the field of service, please call Campus Partners at (800) 334-8609 before sending in the form.

Borrower paid collection cost is the fee that may be assessed on a borrower’s loan when a loan is placed in collection. Most collection agencies charge a "contingency fee," which means collection costs are only earned by the collection agency when the borrower makes a payment. This is known as "Collection Costs."

The institution may also assess collection costs to the borrower if they use their own personnel to collect past due amounts. This is coded in our system as "Other Costs."

The PAYR (Payment Reversal) screen is a transaction screen used to reverse payments. If a fee is posted after the payment is applied, the fee is backdated to one day prior to the payment date to allow the fee to be assessed. The PAYR screen is not intended to reflect reprocessing adjustments. The on-line history of the account (HALL) can be used to review the reallocation of payment between fees, principal, and interest.

Most collection agencies send invoices at the end of the month which includes the activity for the entire month. At Campus Partners, we usually receive the invoice within the first two weeks of the following month. Once the invoice is received, payments are posted within three to five business days. Typically, the payments are backdated to reflect the date the agency received the payment.

First of all, please determine if the loan was ever placed with a collection agency. If so, review the payments to verify that the correct collection costs were assessed for each payment the borrower made. If there are fees missing from a payment, contact our Customer Service team for any adjustments.

Collection agencies will either bill the school for their services (called the "gross check method") or the agency will net the fees directly from the borrower payments (called the "net check method"). Schools can select a preferred method when contracting with a collection agency.

The net check method refers to payments that are received from a collection agency minus agency fees. When net checks are received, Institutional Paid Collection Cost (IPCC) is applied. For example, if an agency collects $100 from a borrower, and agency fees (IPCC) on the loan is $25, the school will receive $75.

When Campus Partners receives an invoice, we apply $100 to the account so that the borrower receives full credit for his/her payment. Then, we apply $25 as IPCC.

If a loan has been returned to regular billing, it will be reflected on the Transactions Against Loans in the Collections Report.

The Collections Report will list the borrower’s name and reflect him/her as “Removed” under the report-section, “Activity”. The agency should be able to extract this weekly report from eXpressReports.

If an agency closes and returns a loan, it is critical that the school notifies our company. This will allow the loan to be returned to regular billing.

The “Oldest Outstanding” bill is the oldest bill that remains due and not paid by the borrower. The date of this bill can be found in the second column of the MAIN screen. This information also appears on the History of Outstanding Bills screen.

Award letters will provide the borrower with the first notification of the amount available to them. A total loan indebtedness disclosure will be included as part of the online MPN.

A school may choose to use the Federal Perkins MPN as a single-award year promissory note or as a multi-award year promissory note. Single-award year use of Federal Perkins MPN requires a borrower to sign a promissory note at least on an annual basis. Multi-award year use of the Federal Perkins MPN requires just one signature when the first loan is made under the Federal Perkins MPN.

No. The borrower does not need to sign another MPN because it remains valid for 10 years after the initial signature date. The only exception would be if the school receives written notification from the borrower requesting that no further loans be made under the MPN.

No. The ‘Electronic Signatures in Global and National Commerce Act (E-SIGN), Public Law No. 106-229, requires that the consumer affirmatively consent to receive documents in an electronic form. If the consumer declines to participate in electronic records, the consumer has the right to receive paper records at no cost.

An electronically signed multi-year MPN remains valid for a period of 10 years from the date it was signed by the borrower or the date the school received the signed MPN. The MPN must be accessible for a period of three years after all of the loans disbursed under the MPN have been paid in full or otherwise and thereafter closed. The single-year MPN must also be accessible for a period of three years after the loan disbursed under it becomes paid in full or otherwise.

There are several processes that may be used as electronic signature on an MPN or other covered transaction. These include:

• a shared secret, such as a PIN;
• a unique credential or token such as a cryptographic smartcard or a one-time password device;
• a computer file or number that corresponds to a biometric measurement uniquely associated with the borrower, such as a fingerprint or retinal pattern;
• a scanned image of the borrower’s signature; or
• a typed name combined with any of the above.

Our company will allow the borrower to electronically sign their Federal Perkins MPN using their FSA PIN.