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Federal Perkins Loan Program
Rights and Responsibilites

It is essential that borrowers under the Federal Perkins Loan program have as complete an understanding as possible of their rights and responsibilities under this program.  In order to completely familiarize you with this educational loan program, you should read the following information.  This document must be signed to acknowledge that you have been informed of your rights and responsibilities under the Federal Perkins Loan Program. 

The Federal Perkins Loan program is for students who are enrolled at least half time in a degree program, have demonstrated need defined by the JMU Office of Financial Aid & Scholarships, and who meet the other general eligibility criteria to receive financial aid.  Per regulation, undergraduates may borrow up to an annual limit of $4,000 with an aggregate loan limit of $20,000.  Graduate Students may borrow up to $8,000 annually with an aggregate loan limit of $60,000 (including undergraduate loan debt).  However, due to funding limitations, JMU's policy provides annual loans of no more than $1,000 for in-state undergraduate students, $2,000 for out-of-state undergraduates, and no loans for graduate students.  These loans are need based and require the Free Application for Federal Student Aid (FAFSA) to be filed in order to determine eligibility.    

A loan is a serious legal obligation.  Therefore, it is extremely important that you understand your rights and responsibilities.  When you, the student borrower, sign this statement it means that you understand your rights and responsibilities and agree to honor them. 

 I must report any of the following changes to James Madison University, University Business Office, MSC 3516, Harrisonburg, VA 22807
· if I withdraw from school

· if I transfer to another school
· if I drop below half-time status which is less than 6 hours
· if my name changes (for example because of marriage)
· if my address or my parent’s address changes
· if my social security number changes
· if my telephone number changes 

 When I withdraw or graduate from James Madison University or transfer to another school, I must arrange for an exit interview by contacting the University Business Office at (540) 568-6509.

 The annual percentage rate of 5% will be the finance charge based on the unpaid balance and interest will begin to accrue nine months after I cease to be enrolled as at least a half-time student. 

 My first monthly payment will be due ten months from the time I cease to be at least a half-time student.

 My first monthly payment will be at least $40.00, which may include interest.  The payment may be more if the amount borrowed is sufficient to require larger payments. 

 Cancellation may be granted for certain types of service and in the event of death or permanent disability.  The types of service include teaching, Head Start, military, volunteer, law enforcement or corrections officer, nurse or medical technician and employees providing or supervising services to high-risk children and their families from low-income communities. 

 Deferment may be granted if I am:
· enrolled at least half-time at an eligible institution of higher education;
· enrolled in a course of study in an approved graduate fellowship program;
· engaged in graduate or post graduate fellowship-supported study outside the United States;
· enrolled in a rehabilitation training program for disabled individuals excluding a medical internship or residency program;
· seeking and unable to find full-time employment, but not in excess of three years;
· suffering an economic hardship, but not in excess of three years; or
· engaged in service described under the cancellation provisions. 

 I am not eligible for a deferment while I am serving in a medical internship or residency program.

9. Forbearance may be granted not to exceed three years if my annual Title IV SFA loan repayment obligation equals or exceeds 20% of my total monthly gross income or James Madison University determines that I qualify for other reasons.

 It is my responsibility to submit proper documentation to the Student Aid Accounting Office for all cancellation, deferment and forbearance requests.

 I may prepay all or any part of the principal, plus any accrued interest thereon, at any time.  Future interest will be reduced by prepaying.

 I will be assessed a late charge if my payment is late or I do not submit on or before the date on which payment is due, documentation that I qualify for deferment or cancellation.

 Default is defined as failure of a borrower to make an installment payment when due or to comply with other terms of the promissory note or written repayment schedule.  If I default on my loan, the entire unpaid balance including principal, interest, late charges and collection costs may become due and payable immediately.

 I am responsible for all reasonable collection and litigation fees necessary for the collection of any amount not paid when due.

15. James Madison University is required to disclose to a credit bureau organization the amount of a loan made to me at the time of the disbursement of the loan.  A defaulted loan will also be disclosed to a credit bureau organization.

 James Madison University must provide me with a copy of the complete promissory note and a copy of my repayment schedule.  The original promissory note is kept by the Student Aid Accounting Office until the loan is paid in full.

17. I authorize James Madison University to contact any school which I may attend to obtain information concerning my current address, student status, year of study, dates of attendance, graduation, withdrawal or my transfer to another school.

 The Department of Defense offers a loan repayment program as an enlistment incentive.

19. I may be eligible for student loan consolidation and refinancing.  Loans eligible for consolidation are Stafford Loans, Federal Insured Student Loans, PLUSs to students, Supplemental Loans to Students, Perkins Loans and Health Professions Student Loans.  Questions concerning loan consolidation may be directed to the Office of Financial Aid and Scholarships.

 I understand that the Perkins Loan is part of my total financial aid  package. Accepting this loan will affect my eligibility for other types of student aid, including the Federal Stafford Loan.

Attached is a questionnaire that must be completed and returned to the Office of Financial Aid and Scholarships along with the signed Rights and Responsibilities document.  Keep a copy of the Rights and Responsibilities document and the promissory note for your records.  Both the Rights and Responsibilities and the questionnaire must be on file before any Federal Perkins Loan funds are disbursed. Hopefully, this information will assist you in understanding the Federal Perkins Loan program.  Should you have any questions regarding any phase of this program, please contact the Office of Financial Aid and Scholarships.  Should any of your questions relate to disbursements, promissory note, exit interview, repayment, deferment or cancellation you will be directed to the University Business Office for assistance.  

James Madison University
Entrance Questionnaire

The following information must be furnished to the University Business Office in order for you to receive your loan disbursement.

Personal Data: (if the question does not apply to you please use N/A)

Parent or Guardian Data: (if the question does not apply to you please use N/A)

Personal References: Adults not listed above who will always know you current address. Do not list students or professors.

Two Relatives over 18 not living with you or your parents, if you are unable to provide information for a relative please use another adult (please do not leave blank or list as N/A):

Two Personal References: (neighbors, pastors, friends):

Borrower Certification: I understand that to obtain a loan through this process I must perform the following steps. First, complete and submit this form to the Office of Financial Aid & Scholarships at JMU. Second, if applicable, sign and return a Master Promissory Note to the appropriate issuing party. Third, all first-time loan borrowers must participate and complete online entrance loan counseling with the University Business Office from which I will be contacted by them to set up a time.  Therefore, by submitting this form online, I agree to these terms and provide consent to JMU to initiate the loan process for the academic year.