Office of the BursarUniversity of CincinnatiDivision of Administration and FinanceOffice of the Bursar

Office of the Bursar

Loans

The Office of the Bursar through its Collections department is responsible for the repayment and collection of loan payments for the campus-based Perkins Loan, Health Profession Loans, Nursing Student Loans and Institutional/Long-Term University Student Loans.

Educational loans can be categorized in many different ways. Three basic categories are Federal Loans, Non-institutional or Private Loans and Institutional Loans. Federal Loans can be further categorized into two groups, Non-Campus Based Loans (Subsidized and Unsubsidized Stafford Loans, and Graduate and Parent PLUS Loans) or Campus Based Loans (Perkins Loans, Health Profession Loans, and Nursing Student Loans). The billing service provider for Perkins Loans, Health Profession Loans, Nursing Student Loans, and Institutional/Long-Term Loans is:

           Educational Computer Systems, Inc. (ECSI)
           181 Montour Run Road
           Coraopolis, PA  15108

Information on the repayment and collection of Stafford Loans, PLUS Loans and Private Loans can be found by contacting the Financial Aid office at http://financialaid.uc.edu/aid/loans.html.

Before Loan Repayment Begins
Exit Interviews are required for all borrowers who have a Perkins/Nursing/Health Professions/Long-Term Student Loan and who are graduating or are no longer enrolled at least half-time at the University of Cincinnati. The U.S. Department of Education (ED) is concerned that students who have borrowed loans fully understand their loan balances and repayment responsibilities. Therefore, whenever students graduate or discontinue their education for any period other than summer term, Federal Perkins  and Institutional Loan borrowers are required to complete loan exit counseling. A letter is sent from Collections indicating when online exit interviews are available.

Federal Perkins, Nursing, Health Professions, and institutional loan borrowers complete specific exit counseling using ECSI's online tool. To access this Exit interview you will need a specific PIN to access the system.  To get your ECSI PIN call (888) 549-3274. The university’s ECSI school code is “3W.” Your SSN will be your account number.

Complete the Exit Interview at ECSI Exit Counseling. Follow the instructions for completing the interview. Each loan counseling session takes approximately 25 minutes to complete, and UC will electronically receive record of your successful completion within 48 hours. If you should encounter problems or have questions, please call Collections at (513)556-3431 or (877) 724-7249.

Please be advised that the exit interview is mandatory for all borrowers of campus-based loan programs. Even if you plan to enroll again, loan exit counseling at the time you take a break from your education beyond the summer term provides valuable information on your loans. Failure to complete the required documentation will result in service blocks being placed against your diploma, grades, and transcripts, as well as prevent further registration privileges.

The university's Student Financial Aid Office works with The Department of Education's National Student Loan Data System (NDLDS) to offer the loan counseling requirement for Federal Stafford Loan borrowers. Exit Loan Counseling for Federal Subsidized and Unsubsidized Stafford Loans can be accessed at NSLDS.

The Grace Period is that period of time before the borrower must begin or resume repaying a loan. This period begins immediately after the borrower graduates or ceases to be enrolled as at least a half-time student. If you cease to be a half-time student, but re-enter the same or another accredited school as at least a half-time student within the applicable grace period, the grace period is not considered to have begun.

Loan Repayment
Loan Repayment begins when the student graduates or ceases to be a half-time student and any eligible grace period ends. Specific details will be found in the promissory note.  The total amount of the loan received under the program, plus accrued interest, and other related costs must be repaid.

If you cannot repay your loan at the prescribed time, there may be other options available to you.  Those options include cancellation, forbearance and deferment.

Cancellation of part or all of a loan is available on some loans where a borrower is employed in selected fields. Please refer to your Federal Perkins Promissory Note for all eligible cancellations.

Forbearance is typically a temporary postponement of payments for students experiencing financial hardship, poor health, or other acceptable reason.  Interest continues to accrue when your loans are in forbearance

Deferment is also a temporary solution when a borrower finds themselves in a situation that would hinder him or her from repaying their loan.  In a deferment the borrower is not required to pay loan principal.

To receive a cancellation, forbearance or deferment you must use the proper form, immediately upon entry into eligible service or student status. You may also be required to provide documentation prove that you qualify. You may lose the benefit if you fail to file a timely request.

If You Fail to Repay Your Loan
A Default is when you fail to make a scheduled payment when due or to submit proper documentation of deferment, cancellation, or forbearance. When this occurs the university may declare your loan in default and accelerate your loan.

The school will disclose to credit bureaus that the loan is in default. If you default you will also lose the right to be awarded any other further federal student financial assistance until satisfactory arrangements has been made to repay the loan.

If your loans are about to go into default or if you have defaulted on your loans you should be aware of what is available to you for Loan Rehabilitation.

Loan Rehabilitation may be available to defaulted loan borrowers. Eligible borrowers must request rehabilitation. Loan rehabilitation is achieved by making 9 consecutive, on-time monthly payments on a defaulted loan. After successfully completing 9 consecutive payments, the borrower will again be eligible for all remaining benefits from the original promissory note. The default will be removed from the borrower's credit bureau report.

The Student Loan Ombudsman will review and attempt to informally resolve any dispute you may have with the loan holder of a National Direct Student Loan (NDSL) or Perkins Loan.  The Ombudsman can be reached through the Department of Education at (877) 557-2575 or on the Ombudsman website.

Loan Chart
The following chart is designed to give you additional detail about the loans reviewed in this section.

  Perkins Loans Health Profession Loans Student Nursing Loans Institutional Long-Term Loans
Where do You go to get this type of loan? The respective Financial Aid Office The respective Financial Aid Office The respective Financial Aid Office The respective Financial Aid Office
Where do the funds come from for this type of loan? U. S. Department of Education
U. S. Department of Health and Human Services
U. S. Department of Health and Human Services
Institutional Funds
What length of grace period does this loan have? Nine months after graduation or you cease to be at least a 1/2-time student. Twelve months after graduation or if you cease to be at least a 1/2-time student. Nine months after graduation or if you cease to be at least a 1/2-time student Varies by loan
What is the interest rate on this loan? 5% 5% 5% Varies by loan, 0-9%
What is the prepayment penalty for this loan? None None None None
What are the repayment terms for this loan? 10 Years 10 Years 10 Years Varies by loan