Welcome to Student Loan Entrance Interview Counseling
Before you take out a student loan, you are required by federal regulation to complete this student loan entrance interview counseling session.

Things You Need to Know
Now that you're taking out a student loan, it's important to brush up on the details of your Perkins student loan. Among the most important points:

1. You MUST pay back your loan. That is true no matter what your circumstances -- even if you don't finish school, you don't get a job after leaving school, or your education didn't meet your expectations. If you pay on time, you build a good credit history, which makes it easier for you to borrow money in the future. If you don't pay, however, you will face serious consequences.
2. Your school is your lender for Perkins loans -- so keep them informed. Stay in close touch with the financial aid professionals there. Contact them, or their billing service, with any changes in your name, address, phone, employment situation, etc.
3. Staying informed can make a big difference. Keep your records accurate and organized, so you can resolve problems more easily. Know the amount of your student loan payments -- and when they begin. Read all information carefully. Keep copies of any promissory notes you sign: they tell you the total amounts borrowed, and the names and addresses of the institutions from which you borrowed.
4. It helps to develop a budget now. This helps you manage your debt. It also prepares you to manage your student loan payments when you're done with school.

Now, please read the rest of this counseling session. An entrance interview is a federal requirement for anyone taking out a student loan. Reading this session fulfills the requirement.

What Is a Federal Perkins Loan?
A Federal Perkins Loan is a low-interest (five percent) loan for both undergraduate and graduate students with exceptional financial need. The loan comes from government funds, with a share contributed by the school. As a result, your school -- or its billing service -- is your contact for everything about your Federal Perkins Loan.

What Happens After I Leave School?
Several steps take place after you leave school or drop below half-time attendance. First, you get a grace period -- a period of time (nine months) when you don't have to make payments. (Of course, you can repay your loans any time you want, without penalty.) During the grace period, no interest is added to your loan.

What if you re-enroll in school? It depends on when you do it. If you re-enroll at least half-time during this grace period -- and you file for deferment (for more information about deferments, see below) -- you get another nine-month grace period the next time you drop below half-time. If you re-enroll after the grace period, however, your next grace period will only be six months.

During the grace period, the school or its billing service will send you a repayment schedule, which tells you the interest rate, payment amounts, and payment methods. The methods may include:

1. ACH (Automated Clearing House) -- an automatic deduction each month from your checking or savings account. You'll save money by not writing a check or paying postage.
2. Billing statements -- sent each month as a convenient reminder.
3. Coupon books -- you receive a supply of coupons to send in with your monthly payments.

One month after the grace period, your first payment is due. The Federal Perkins Loan usually carries a minimum monthly payment of $40; your payment may be higher, depending on your loan balance. The maximum repayment period is 10 years. Your school may be on a quarterly payment cycle. In this case, your minimum quarterly payment (due every 3 months) is $120.