Loan Repayment

Repayment

ACS Education Services, a billing service for Federal Perkins loans, is under contract with Northwest Nazarene University (NNU) to perform the billing and accounting for your Federal Perkins Loan. You may contact ACS toll free at 800-826-4470, or visit their website

The Federal Perkins loan you receive to help you with your education comes from a revolving fund. Your prompt payment of this loan will return monies to the fund which can be used by others for funding their education.

Statements are prepared and mailed by ACS on or near the 1st of each month for current loan accounts. If your loan is past-due, statements are prepared on or near the 15th of each month.

You must make payments on your loan even if you do not receive a bill or payment notice. Billing statements are sent to you as a convenience, but you are obligated to make payments even if you do not receive any reminders.

If you fail to make full payment when due or do not file forms with the proper documentation in a timely manner, you will be assessed a late charge and may be reported as a delinquent account to the national credit bureaus. 

If you fail to fulfill your responsibilities concerning your student loan, you may be required to repay the entire loan immediately including accrued interest, late charges, collection fees and legal costs.

Option 1: Payments can be made online at ACS. 

ACS offers several electronic payment options. Find out more under the Express Pay tab.

Option 2: Payments with a coupon can be mailed to a third party.

Northwest Nazarene University
c/o ACS, Inc.
P.O. Box 3295
Milwaukee, WI 53201

Please make your check payable to Northwest Nazarene University and be sure to include your tear-off payment coupon with your check. Also, it is always helpful to have your account number on your check. 

Option 3: Payments without a coupon can be mailed directly.

Northwest Nazarene University 
Business Office-Student Loans 
623 S. University Blvd 
Nampa, ID 83686 

ACS Education Services
Campus Products and Services
P.O. Box 7061 
Utica, NY 13504-7061

Defaulting

What does it mean to default?
Default occurs when a borrower becomes past due in making a payment on his or her loans. Maintaining a good credit history is an important responsibility of any borrower and you must develop a habit of meeting your payment schedule.

How will I know if I'm in danger of defaulting?
If you miss a payment, ACS (NNU's Perkins loan billing service) will send you a letter reminding you that your payment is late. If your account remains past due, ACS will send notices to remind you about your obligation to repay your loans and of the consequences of default. Remember, however, you must make payments on your loan even if you do not receive a bill or repayment notice. Billing statements are sent to you as a convenience, but you're obligated to make payments even if you do not receive any reminders. You may not receive a notice if your address or name has changed. You must keep ACS and NNU informed of any changes in your name, address and telephone number.

If facing a large amount of debt, you might be tempted to skip or delay some of your student loan payments. Your Federal Perkins loan has been reported to a national credit bureau and is treated like any other form of credit. Remember, a poor credit report will negatively affect your financial reputation for many years; it could keep you from obtaining a car, a mortgage, or even a credit card. Your report could be requested and used as a basis for hiring by your employers, or it could even be used by property, casualty and life insurance companies as a basis for refusing to underwrite your personal property. Therefore, it is most important to do all you can to make your loan payments in a timely manner. Don't let this happen to you!

If you fail to make loan payments on time or if you default on your loan, the consequences are serious:

  • You will no longer be able to make easy monthly payments.
  • You will lose your deferment, cancellation, and forbearance options.
  • You will not be eligible for further federal or institutional student financial aid.
  • Your school academic transcripts will be withheld.
  • Your loan may be turned over to a collection agency.
  • Your loan will be reported as delinquent to credit bureaus, damaging your credit rating.
  • Your total debt may be increased by late fees, additional interest, collections fees, court costs, attorney's fees and other costs.

Remember, if you are having trouble making your payments, call NNU at 208-467-8534. There are options that may be available in circumstances of financial hardship. NNU wants to work with you to help you meet your loan obligation.

Rehabilitation

A borrower may rehabilitate a defaulted Perkins Loan by making 12 consecutive on-time payments. The amount of the payments during and after rehabilitation will be determined by an agreement between the borrower and NNU.

Upon successful completion of rehabilitation, a borrower is returned to regular billing status and is subject to the terms, conditions and benefits of his or her original promissory note, including deferment and cancellation. Additionally, NNU will request that credit agencies remove any derogatory information from the borrower's credit history regarding the rehabilitated Perkins Loan. Financial Aid eligibility is re-established after the loan is rehabilitated.

In order to request rehabilitation, the borrower must contact NNU. If the loan is with a collection agency, the borrower must contact the collection agency handling the collection of his or her loan (this is not ACS). Please note that Perkins Loans may only be successfully rehabilitated one time during loan repayment.  

U.S. Army

The U.S. Army offers a loan repayment program as an enlistment incentive. If a borrower of a Federal Perkins loan serves as an enlisted person in the U.S. Army, the Army Reserves or the Army National Guard, the U.S. Department of Defense will repay a portion of the loan. For more information, contact your local military recruiting office. This is a recruitment program, not a cancellation, and does not pertain to an individual’s prior Army service.

Discharge

Death

Any remaining balance on a Perkins loan will be discharged when a borrower's original or certified copy of the death certificate, or a valid copy of a certified death certificate is received.

Total and Permanent Disability

Should the borrower become unable to engage in any substantially gainful activity because of a medically determined impairment, the unpaid balance may be canceled.

Totally and permanently disabled (TPD) is defined as the condition of an individual who (1) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death, that has lasted for a continuous period of not less than 60 months, or that can be expected to last for a continuous period of not less than 60 months: or (2) has been determined by the Secretary of Veterans Affairs to be unemployable due to a service-connected disability.

Substantial gainful activity is defined as a level of work performed for pay or profit that involves doing significant physical or mental activities, or a combination of both.

To claim this entitlement, the borrower must submit to NNU a formal request for loan cancellation and a physicians statement that certifies the date of onset, nature, and extent of the disability. Receiving Social Security disability benefits does not automatically qualify a borrower for permanent and total disability cancellation.

If NNU determines, based on certification from the borrower's physician, that the borrower is totally and permanently disabled, NNU will assign the account to the Department of Education. The Department will be the new loan holder. If the Department of Education makes an initial determination that the borrower is totally and permanently disabled, the loan will be conditionally discharged for up to three years from the discharge date. At the end of three years, the Department of Education will review the case and make a determination for final discharge or repayment status.

Download Request for Total and Permanent Disability Discharge 

Express Pay

Automatic Bill Payment

Eliminate the burden of mailing payments by using this free service which helps you insure that your payments are always on time and current. Automatic Bill Payment gives you the opportunity to enjoy convenience, security, speed and savings by having your payments automatically withdrawn from your checking account. The service is absolutely FREE. All you have to do to get started is fill out the application. An application can be completed and submitted online through the ACS website, or you can download the form here and mail it in.

Express Pay

Express Pay gives you the flexibility to make payments online at ACS’s website whenever you like. You can make your payment online with Express Pay one month, and mail your payment the next. You can make payments anytime, anywhere. Use Express Pay for regular installments, pre-payments, or even interest payments while in forbearance. You can pre-schedule payments, view a history of your transactions, and more! This is a quick, easy, and safe way to make your payments directly at ACS's website, and, best of all, there is no charge for using this service.  

For more information regarding these options visit ACS.

Consolidation

If you are making student loan payments to more than one lender, loan consolidation could simplify your loan repayment. Consolidation helps you by combining several student loans into one. This means one monthly payment to one lender. Your paperwork is reduced too. If you request a deferment or forbearance you only need to request and complete one set of forms instead of additional forms for each of your lenders. Depending on the size of your debt, your repayment period may be extended, resulting in a more affordable monthly payment. You may have the option of an income-sensitive repayment plan. Some Stafford Loans have a variable interest rate, meaning the interst rate changes every July 1. By consolidating you will be able to lock in a fixed interest rate on these variable rate loans that will protect you from future interest rate increases; check with your consolidating lender before applying.

Consolidation does have drawbacks. You may pay more interest costs if your repayment period is extended. A consolidation loan may not have as many deferment benefits and will not offer the cancellation benefits that a Federal Perkins Loan offers. It is possible that the interest on the Federal Perkins Loan portion of your consolidation loan may not be deferred during the time of a deferment; check with your consolidating lender before applying.

In general, most borrowers do not consolidate their loans until their grace period ends. This allows borrowers the full benefit of their initial grace period.  

Advantages

  • Extended repayment period up to 30 years
  • Lower monthly payment amount
  • Convenient, single monthly payment

Disadvantages

  • Extended repayment period adds to total interest expense
  • Interest rate may be higher than rate for original loans. (Interest rate is the weighted average between the loans being consolidated.)
  • Federal Perkins Loan borrowers may lose eligibility to cancel their debt for full-time employment in certain fields of teaching, law enforcement, public service, service in the Peace Corps, or service in the military. Please refer to your promissory note for more information on your cancellation benefits.

Eligibility

Most federal student loans and PLUS Loans can be consolidated. The loans you’re consolidating must be in their grace period, repayment, deferment, or forbearance (some exceptions apply). For more information go to http://mappingyourfuture.org/paying/consolidation/.

The Process

If you do not know who your lender is, you can access your student loan information online at http://www.nslds.ed.gov/. If you are unable to consolidate with your current lender since many private lenders no longer offer a consolidated loan program contact Direct Loan and they will consolidate your loans. The Direct Loan consolidation website is http://loanconsolidation.ed.gov or call 1/800/557.7392.

You may find that you are able to choose from several payment plans tailored to meet your present needs. If you will not be qualifying for the cancellation benefits offered by the Federal Perkins Loan Program, consolidating your loans could be the answer for you. Please remember you must continue to make payments to NNU, or our billing service, until your consolidation loan is funded.

Private student loans cannot, in general be consolidated with federal student loans. Check out the Smart Student Guide to Financial Aid website at http://finaid.org/loans/privateconsolidation.phtml for information on lenders who may consolidate a private loan.

Warning

It is always good financial practice to never give information to consolidation companies who call you first. If the company seems to have an interesting deal, research it first, confirm any important selling points, then call THEM at their listed number.