Loan Repayment Office
The Loan Repayment Office is here to help current and former Salem State University students manage their Salem State University loan obligations so these loan programs remain fiscally sound for future students. We ensure confidentiality of all loan activity. We will assist you by conducting exit interviews, notifying you of any impending delinquency and consequences, processing deferment and hardship requests, and responding to related correspondence. We also serve as liaison to the billing service and collection agency.
Federal Perkins Loans are low-interest student loans that participating schools make to eligible students. This is a campus-based loan program, with the school acting as the lender for funds provided by the Federal Government. There is no origination or guarantee fee. No interest accrues on a loan while a student is enrolled at least halftime in an eligible program. After the student leaves school, there is a nine month grace period before repayment begins. The loan repayment period is 10 years.
Student Nursing Loans
NSL loans are low-interest student loans that participating schools make to eligible nursing students. This is a campus-based loan program, with the school acting as the lender for funds provided by the Department of Health and Human Services. There is no origination or guarantee fee. No interest accrues on a loan while a student is enrolled at least halftime in an eligible program. After the student leaves school, there is a nine month grace period before repayment begins. The loan repayment is 10 years.
Loan Exit Interview
Federal regulations require that you attend exit loan counseling for your Perkins and/or your Student Nursing Loans if you graduate or leave school. We will provide you with an amortized repayment schedule and information on deferment, forbearance and cancellation options that you might qualify for. We will also calculate different repayment options (10,15,20 year) for you if you would like to consolidate your student loans. Loan exit material will be mailed to you for completion. A return envelope will be provided.
Defaulting on your Perkins or Student Nursing Loan
There are options available to you before you default on your loan. Contact us immediately if you fall behind on your payments. You may be eligible for a Deferment (postponement) or Hardship Forbearance (extension of time for repayment). Qualifying situations may include, but are not limited to:
- Economic Hardship
- Temporary disability
- Military/Public Service
If you contact us for a deferment or hardship forbearance please keep in mind that we help thousands of borrowers that graduated or left Salem State University. We will do our best to process your paperwork as soon as possible.
ACS (Affiliated Computer Services) Data Corporation, a billing service for Perkins and Student Nursing Loans is under contract with Salem State University to perform all the billing and accounting for these two loan programs. You will receive payment information at your exit interview.
Questions about your payments? Contact ACS at 1.800.432.2372.
Consequences of Default
If you do not make payments on your outstanding loans there can be serious consequences:
- Account reported to credit bureaus
- Lose Deferment Options
- Federal government takes tax refunds
- Portion of your wages can be withheld
- Lose eligibility for further financial aid
- Account turned over to collection agency
- Total debt increased due to fees
- Federal government can take legal action
- State tax intercept
Preventive Measures to Keep Your Loan Out of Default
- Borrow only what you need.
- Keep an information folder with all of your exit packet information, cancelled checks, promissory notes and other important information regarding your loan(s).
- Make your payments on time.
- Make sure you notify Salem State University Loan Repayment Office and ACS of any address changes, name changes, etc.
- As soon as you encounter financial difficulties contact the Loan Repayment Office immediately before you stop making payments on your loan(s).
- Consider loan consolidation options.
- Read thoroughly all correspondence that you receive from the Salem State University Loan Repayment Office and ACS.
8:30 am - 5 pm, Monday - Friday
Appointments are strongly suggested.
Administration Bldg., 2nd Floor
Loan Repayment Office
Salem State University
352 Lafayette Street
Salem, MA 01970