Financial Aid Perkins Loan

A financial aid Perkins loan is available to both undergraduate and graduate students with the lowest interest rate of all student loans (5%). Although the federal government provides the majority of the funds for Perkins student loans, the school contributes a small portion of its own institutional funds. The school also serves as the actual lender and, as such, repayment will be made to your school. As students pay back their loans, the funds are redistributed to other students.

• The maximum Perkins Loan award is $4,000 per year for undergraduates, and $6,000 per year for graduate students.
• The amount you receive from a Federal Perkins Loan – if any – will depend on your financial aid need, the amount of other aid you receive, and the availability of funds at your school.
• Generally, you will not be charged interest on your Perkins Loan, nor be required to begin repaying the loan until nine months after you have graduated, withdrawn, or dropped below half-time enrollment status.
• Borrowers have a nine-month grace period before beginning repayment. The repayment period for a Perkins student loan is 10 years, with a minimum monthly payment of $40. However, the exact time-frame for repayment and the amount of your monthly payments can vary widely, based on your total indebtedness.
• Additionally, the Perkins student loan program contains some forgiveness programs, not offered to students who have other federal loans.

Perkins Loan Application Process: Supplementary Step

Either prior to or after you apply for Perkins Loans, you will be required to submit a FAFSA application form, to determine your level of financial need and subsequent eligibility. Go to www.fafsa.ed.gov to download this form.