New regulations for the Perkins Loan program now include a benefit for DEFAULTED PERKINS LOAN borrowers to bring their accounts current. It is called REHABILITATION.

To rehabilitate your loan you must make twelve consecutive monthly payments on your defaulted balance. At the end of that period, we will verify that all twelve payments were made – one each month – and at that point, bring your account current. All adverse information on your Perkins Loan will be deleted from the credit bureaus and your loan will be eligible for deferments and cancellations. It will be as if your loan had never defaulted.

THIS IS A ONE-TIME OPTION. Once a loan has been rehabilitated, it can NEVER BE REHABILITATED AGAIN.

This is your opportunity to erase the bad credit history from your credit bureau file. It will give you a clean slate on your Perkins Loan.

To start the process, you must request this benefit IN WRITING from this office. We will need to agree on a reasonable payment plan for that twelve-month period. During the rehabilitation process, there is no set amount that your payments must be. They may even be less than the amount originally scheduled. Be aware that starting with the 13th payment, you must pay at least the originally scheduled amount – generally $40 per month.

During the twelve months of payments, your loan will continue to report as defaulted to the credit bureaus. You can choose between having coupons printed, or receiving a bill each month, or having the payments automatically withdrawn from a checking account.

DIRECT ANY QUESTIONS CONCERNING YOUR LOAN OR THIS BENEFIT TO:

University of Northern Iowa Controller’s Office, Gilchrist 256 ATTN: Perkins Loans Cedar Falls, IA 50614-0008

(319)273-3539 or 273-6441 fax: (319)273-2001 e-mail: penny.becker@uni.edu OR joyce.willms@uni.edu