Federal Perkins Loan Program
Program Description
Federal Perkins Loans help financially needy undergraduate and graduate students meet the cost of postsecondary education. The award is made by the school based on the availability of funds. A Federal Perkins Loan carries a fixed interest rate and must be repaid beginning after a nine-month grace period following the date when the student is no longer enrolled on at least a half-time basis.Institutional financial aid administrators at participating institutions have substantial flexibility in determining the amount of Perkins loans to award to students who are enrolled or accepted for enrollment. Borrowers who undertake certain public, military, or teaching service employment are eligible to have all or part of their loans canceled.
General Program Requirements
In order to qualify for this benefit program, you must be a student pursuing a postsecondary educational degree or certificate.Loan Terms
Maximum Loan Amounts: Undergraduate - up to $5,500 a year (maximum of $27,500 as an undergraduate)Graduate - up to $8,000 a year (maximum of $60,000, including undergraduate loans)
Amount actually received depends on financial need, amount of other aid, and availability of funds at school
Interest Rate: Fixed at five percent
Maximum Loan Length: Up to 10 years to repay, depending on amount owed
Frequency of Payments: Monthly or quarterly. After you graduate, leave school, or drop below half-time enrollment, you have a nine-month grace period before you begin repayment. Those in the military might have longer.
Prepayment penalties: None
Fees: None