ECSI

Addendum to Federal Perkins Loan Promissory Note

The College Cost Reduction and Access Act (Pub. L. 110-84), signed into law on September 27, 2007, and the Higher Education Opportunity Act (Pub. L. 108-315), signed into law on August 14, 2008, changed the terms of loans made under the Federal Perkins Loan Program authorized by Part E of the Higher Education Act of 1965, as amended.

Change in the number of consecutive monthly payments required for loan rehabilitation from twelve to nine.
Change in forbearance requirements to allow for oral forbearance requests.
Changes to the active duty military deferment provisions and addition of a new post-active duty deferment.
New loan cancellation provisions for attorneys employed in a defender organization, firefighters, tribal college or university faculty, librarians, and speech-language pathologists.
Expansion of teacher cancellation to include teachers who perform qualifying service at a school or location operated by a low-income educational service agency.
Expansion of Head Start cancellation to include full-time staff members in a pre-kindergarten or child care program that is licensed or regulated by the State.
Increase in the maximum amount that may be cancelled for military service from 50 percent to 100 percent.

The Department of Education has issued an Addendum for the Federal Perkins Promissory notes signed before the above changes could be incorporated into the Perkins Master Promissory Note. While this article provides a summary of the changes, the complete Perkins Addendum may be obtained at the following link:

http://ifap.ed.gov/dpcletters/attachments/CB0905PerkinsMPNAddendumFINAL.pdf

***** Please note that defaulted loans are no longer eligible for many Perkins loans entitlements*****