Federal Perkins Loan Default Reduction Assistance Program

Schools that participate in the Federal Perkins Loan Program can get free assistance from the Department of Education to aid in communicating with borrowers in the late stages of delinquency. The Department will send letters to borrowers that are about to be placed in collections urging them to initiate repayment by contacting the school to make appropriate repayment arrangements. The letter explains the consequences of default which include loss of federal financial assistance, seizure of income tax refunds, wage garnishment and damage to borrower credit history. Schools can sign up for DRAP through the e-Campus Based Website. For more info click here: http://bit.ly/2cLi5fF