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| October 1, 2006 |
| We are pleased to announce that as of October 1, 2006, the billing and payment processing for your student loan will be handled by Educational Computer Systems Incorporated (ECSI). [Learn more] |
| 7/01/06 |
As of 7/1/06 there is a new deferment for Perkins loans.
MILITARY DEFERMENT (.doc)
EFFECTIVE 7/1/06 FOR LOAN OBTAINED ON OR AFTER 7/1/2001
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U.S. Department of Education
Student
Aid and Identity Theft: Safeguard Your Student Aid Information
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| Effective 7/1/02 TOTAL AND PERMANENT
DISABILITY |
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New standards and procedures for granting total and permanent
disability write off are in effect as of July 1, 2002. The Loan
Discharge Application for Total
and Permanent Disability (PDF file format), must be completed.
It is important to read " SECTION 4: INSTRUCTIONS FOR COMPLETING
THE FORM". |
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| Automatic Direct Draft |
Avoid writing monthly checks by signing up for Automatic
Direct Draft.
Complete the form and return with a voided check or call
for details. Telephone (651) 917-4700
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| **EFFECTIVE DECEMBER 1, 2001** |
| For monthly payments,
charges will increase to $2.00 for the first payment missed and
$3.00 for each month after. For quarterly payments missed the
charge will be $6.00 for the first payment missed and $9.00 for
each quarter missed after that. Any check returned will be assessed
a $20.00 fee. |
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| **REHABILITATION** |
| REHABILITATION New Federal Regulations
allow a Federal Perkins Loan borrower to rehabilitate a defaulted
loan. The borrower must request this. To rehabilitate, 12 consecutive,
on time monthly payments must be made (to be determined by the
Service Center). Once the loan is rehabilitated the following
will take place: · The loan will return to regular status, restoring
rights and benefits of the promissory note · Credit Bureaus will
be instructed to remove default from credit history · The borrower
may rehabilitate a loan ONE TIME ONLY For Information please call
the Service Center at 651-917-4700 or email us at loans@csu.mnscu.edu |
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| **STUDENT OMBUDSMAN** |
| If a borrower disputes the terms of
his/her loan in writing and the Student Loan Service Center does
not resolve the dispute, the borrower may contact: Student Ombudsman
at 877-557-2575 or www.SFAHELP.ed.gov |
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| **PERKINS LOAN CANCELLATION CHANGED** |
| Effective October 7, 1998 the 1998
Amendments of Higher Education changed eligibility requirements
for loan cancellation. Loan cancellations previously eligible
for loans disbursed after July 1992 are now available to ALL Perkins
borrowers. You may be eligible if you are working full time in
the following fields: Nursing; Medical Technician fields; Teacher
of Mathematics, Science, Foreign Language, Bilingual Education
and Special Education; and as a Law Enforcement Officer (enforcing
criminal law); OR providing services: As a Qualified Professional
and Provider of Early Intervention Services (as defined in section
672(2) of the Individuals with Disabilities Education Act that
are provided to infants and toddlers with disabilities); to High
-Risk Children (Individuals under the age of 21 who are low-income
and at risk of abuse or neglect, have been abused or neglected,
have serious emotional, mental, or behavioral disturbances, reside
in placements outside their homes, or are involved in the juvenile
justice system. |
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| **STUDENT LOAN INTEREST DEDUCTION** |
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Effective 12/31/2002 Regulatory change removes the 60-month
limit on payment of interest on student loans. The eligible
interest-paid remains
only the interest due after December 31, 1997. Interest past
due as of January 1, 1998 was and is ineligible for 1098-E
reporting as TRA97 interest paid.
Beginning January 1, 1998, taxpayers who have taken loans to
pay the cost of attending an eligible educational institution
for themselves, their spouse, or their dependent generally may
deduct interest they pay on these student loans. The maximum
deduction each taxpayer is permitted to take increases from
$1,000 in 1998 to $2,500 in 2001 and thereafter. The following
table summarizes the yearly increases. Year Maximum Deduction
1998 $1,000 1999 $1,500 2000 $2,000 2001 and thereafter $2,500
The deduction is available only for interest payments made
during the first 60 months in which interest payments are required
on the loan. The student loan interest deduction is available
for interest payments due and made on or after January 1, 1998.
Thus, the first time taxpayers will be able to claim the deduction
is when they file their 1998 tax returns in 1999. No student
loan interest deduction will be allowed for interest due or
paid before 1998. For more information go to: www.irs.ustreas.gov/hot/not97-605.html |
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| **BANKRUPTCY LAW CHANGE** |
| Effective October 7, 1998, student
loans or educational debts are no longer dischargeable except
for undue hardship. |
