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Federal Loans

Federal Perkins Student Loan Program

General Information:
 
Please note that as of October 1, 2017, other than for pre-existing 2017-18 disbursements, Federal Perkins Loans are no longer available.
  • Federal Perkins Loans are low interest federal loans offered to students who express sufficient financial need. If your FAFSA shows you have adequate financial need, McNeese may offer you a Perkins Loan.
  • Terms of Perkins Loan:
    • 5% interest during repayment
      • begins 9 months after the borrower is no longer enrolled in school at least ½ time
    •  Interest on the Federal Perkins Loan does not accrue before repayment begins.
    • Undergraduate:
      • The Extension Act amended HEA section 461 to end an institution’s authority to make new Perkins Loans to undergraduate students on September 30, 2017.  However, if an eligible undergraduate student receives a disbursement of a Perkins Loan before October 1, 2017, for the 2017-2018 award year, the student may receive any subsequent disbursements of that Perkins Loan through June 30, 2018.
    • Graduate:
      • Graduate students are not eligible for Perkins Loans. The Extension Act amended section 461 of the Higher Education Act of 1965, as amended (HEA), to end an institution’s authority to make new Perkins Loans to graduate students on September 30, 2016.
  • After a student ceases to be enrolled at McNeese at least part time, he or she will be required to attend an Exit Interview at the University.
 
Repayment:  
 
The Federal Perkins Loan program is a campus-based program, meaning McNeese State University is the lender; however, McNeese has a third party servicer, Heartland ECSI, who handles all Perkins loans for the university. Representatives are available to explain terms and conditions of the Federal Perkins Loan Program, detail repayment options, provide current loan statuses to borrowers, and assist with potential cancellations and forbearance. Heartland ECSI’s information is as follows:
 
Heartland ECSI
P.O. Box 718
Wexford, PA 15090

(888) 549-3274
https://heartland.ecsi.net/
 
The Federal Perkins Loan program offers borrowers the opportunity to apply for loan cancellations if they work in certain career fields. If eligible, a student can have up to 100% of his or her loan cancelled over a 5-6 year period, depending on the career. All cancellation and other borrower forms can be found on the website of: https://heartland.ecsi.net/ OR you can also call (888) 549-3274 to speak with a representative about your Perkins loan.


Federal Direct Stafford Loan Program
This program is available to students who are enrolled for at least six (6) credit hours each semester at the time of awarding and disbursing of funds. Students borrow from the U.S. Department of Education and may apply for a maximum loan according to the following schedule:
  • $5,500 for students who have earned less than 30 hours (freshmen).
  • $6,500 for students who have earned at least 30 hours but less than 60 (sophomores).
  • $7,500 for students who have earned at least 60 hours, but have not completed the requirements for a baccalaureate degree (juniors, seniors and graduates not pursuing a graduate degree).
  • $8,500 for graduate students pursuing a graduate degree and enrolled in at least six (6) hours of graduate-level courses. If a graduatestudent is not enrolled in at least six (6) hours of graduate level courses, they could be considered ineligible or eligible for lower level loan amounts.

The total of a Federal Direct Stafford Loan award and a Federal Direct Unsubsidized Stafford Loan award may not exceed the above annual award limits. The U.S. Department of Education will deduct an origination fee of up to 3% and up to 1% default fee of the principal amount of the loan from each disbursement received by a student. These fees are used to offset the costs of default claims and special allowances.

Continuing and transfer students may apply if they have been making satisfactory progress by earning the required number of hours each year with a grade point average of at least 2.0. A first time Federal Direct Stafford borrower who has earned less than 30 hours cannot receive a Federal Direct Stafford Loan check until he/she has attended classes for 30 days.

Loans of this type are repaid over a period of 10 years, excluding periods of deferment and/or forbearance. Interest does not accrue while the student is enrolled at least part time six (6) hours. Repayment of principal and interest commences six (6) months after the day on which the student ceases to be enrolled at least part-time six (6) hours. The interest rate is currently fixed at 5.60/0 effective July 1, 2009.


Federal Direct Unsubsidized Stafford Loan Program
This loan program is available to all students, regardless of family income, who are enrolled for at least six (6) credit hours each semester at the time of awarding and disbursing of funds. Students borrow from the U.S. Department of Education and loan limits are the same as for the Federal Direct Stafford Loan Program. The total of a Federal Direct Stafford Loan award and a Federal Direct Unsubsidized Stafford Loan award may not exceed the above annual award limits. The U. S. Department of Education will deduct an origination fee of up to 30/0 and up to 1% default fee of the principal amount of the loan from each disbursement received by a student. These fees are used to offset the cost of default claims and special allowances.

Continuing and transfer students may apply if they have been making satisfactory progress by earning the required number of hours each academic year with a grade point average of at least 2.0 per academic year. A first time Federal Direct Unsubsidized Stafford borrower who has earned less than 30 hours cannot receive an Unsubsidized Stafford Loan check until he/she has attended classes for 30 days.

Loans of this type are repaid over a period of 10 years, excluding periods of deferment and/or forbearance. Students must pay interest during in-school, grace and deferments. These interest payments may be made monthly, quarterly, or be added to the principal amount of the loan (Le. capitalized). Repayment of principal commences 6 months after the month in which the student ceases to be enrolled at least part-time six (6) hours. The interest rate is fixed at 6.8% effective July 1, 2006.

Parent Loans for Undergraduate Students (PLUS)
PLUS loans are for parents of dependent students. Parents who do not have adverse credit history may borrow from the U.S. Department of Education, and may borrow an amount equal to the cost of education minus estimated financial assistance for each dependent student who is enrolled at least half time. The interest rate is fixed at 7.9% effective July 1,2006. The U. S. Department of Education will deduct an origination fee of 3% and 1% default fee of the principal balance of each disbursement. These fees are used to offset the cost of default claims and special allowances. Repayment of PLUS loans begins immediately and are repaid over a period of 10 years, excluding periods of deferment/forbearance. Borrower should contact the U.S. Department of Education to obtain information regarding possible deferment/ forbearance options.