Federal Perkins Loans are need-based
loans 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.
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The maximum Perkins Loan award
is $4,000 per year for undergraduates, and $6,000 per
year for graduate students.
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The amount you receive from
a Federal Perkins Loan – if any – will depend
on your financial need, the amount of other aid you receive,
and the availability of funds at your school.
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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withdrawn, or dropped below half-time enrollment status.
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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 timeframe
for repayment and the amount of your monthly payments
can vary widely, based on your total indebtedness.
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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 |
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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.
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