Perkins Loans
A Federal Perkins Loan is a low-interest (the interest rate is five percent)
loan for both undergraduate and graduate students. The loan will help you
pay for your educational expenses, including tuition, books, and room and
board.
If you have a Perkins Loan, your post-secondary school lends you the money.
The loan is primarily made with government funds. Your school also contributes
some of the funds. You must repay this loan to your school.
How do I qualify?
The Federal Perkins Loan is usually given to students on the basis of need.
To qualify for a Perkins Loan, you must have exceptional financial need --
this need is determined by your family's finances. Your school will establish
which students have the greatest need.
Make sure you apply as early as possible. Each school will have its own
deadline, but the deadline is usually earlier than the Free Application for
Federal Student Aid (FAFSA) deadline.
How much can I borrow?
In order to budget for your education, you'll want to know how much money
you can borrow. Several factors will determine this amount, including when
you apply, how much you need and how much money is available. The maximum
amounts a student can borrow under a Perkins loan are:
$5,500 for each year of undergraduate study (the total amount you can borrow
as an undergraduate is $27,500), $8,000 for each year of graduate or professional
study (the total amount you can borrow as a graduate or professional student
is $60,000, including undergraduate loans.)
Other than the interest, will I be charged for the loan?
No, there isn't a charge for the loan --but don't forget about that five
percent interest!
However, once it's time to pay back the loan, you'll have to keep up with
your payments to keep costs down. If you miss a payment, make a late payment
or don't make a full payment, you might have to pay a late charge. If you
continue to miss the required payments, you might have to pay costs towards
collection.
Show me the money -- how will I be paid?
Your school will either pay you directly (usually by check) or they'll
credit your account. Generally, you'll receive the loan in at least two payments
during the academic year.
I've changed my mind! Can I cancel the loan, even if I've already
signed the promissory note and agreed to the loan's terms ?
Don't panic! Yes -- you can cancel the loan if you notify the school within
this time frame:
Your school will send you a notice when it credits your account with your
Perkins Loan money. The school must send you this notice no earlier than 30
days before, and no later than 30 days after, they credit your account.
You may cancel all or a portion of your loan if you tell your school within
14 days after your school sends you this notice, or by the first day of the
payment period, whichever is later. (Your school can tell you when the first
day of your payment period is.)
If you receive Perkins Loan funds directly by check, you may refuse the
funds by returning the check.
When do I pay back the loan?
You have nine months after graduating, leaving school or dropping below
half-time status before you have to start paying back the loan. This is called
the "grace period."
How can I get more information?
For more information on Student Financial Assistance Programs, contact
the Federal Student Aid Information Center:
Internet : http://studentaid.ed.gov
Phone : 1-800-4-FED-AID (1-800-433-3243)
TTY : 1-800-730-8913
Spanish speakers are available (se habla español).