Repay Your Loans

Exit counseling for a Federal Perkins Loan

Federal Perkins Loans are managed by IU’s Student Loan Administration, and the exit counseling process is different.

Complete Perkins exit counseling

Pros
  • You have a potential for lower monthly payments.
  • The interest rate is fixed for the life of the loan.
  • You may have flexible repayment options.
  • You’ll have a single monthly payment for multiple loans.
Cons
  • You may lose some discharge (cancellation) benefits if you include a Federal Perkins Loan in a consolidation loan
  • If you extend your repayment period, you may pay more interest over time.
  • Once a consolidation has been completed, you can’t reverse it—the original loans no longer exist, because they’re paid off by the consolidation.

Don’t default on your loans

If you don’t pay back a loan according to the terms of the Master Promissory Note (MPN) you signed, you may default on the loan. Default occurs if you don’t pay on time or if you don’t comply with other terms of your MPN.

What happens if you default?

If you default on a federal loan, the government may take some serious actions against you. You may:

  • Lose wages and tax refunds, which will be applied toward your unpaid loans
  • Lose eligibility for future student aid
  • Be unable to get a home, car, or other loan
  • Lose job opportunities or be unable to get a professional license
  • Damage your credit rating when your loan is reported to the national credit bureaus