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Federal Perkins Loans

What is a Federal Perkins Loan?

Federal Perkins loans are low-interest loans that are based on financial need. You are not responsible for the accrued interest while enrolled in school. These loans are offered through a school's financial aid office, and the school acts as the lender.

Who is eligible?

Undergraduate and graduate/professional students must attend an eligible school, and students do not have to be enrolled in school at least half-time. Students must be a U.S. citizen or an eligible non-citizen.

How do I apply?

To apply for a loan, as well as to find out if you are eligible for federal grants and work-study, you must complete a Free Application for Federal Student Aid (FAFSA). If you are eligible for a Federal Perkins loan, your school will provide you with a promissory note, which is a legal agreement that you agree to repay your loan according to the terms of the note.

How much can I borrow?

Depending on when you apply, your level of need, and the funding level of the school, you can borrow up to:

  • $4,000 for each year of undergraduate study. The total amount you can borrow as an undergraduate is $20,000.

  • $6,000 for each year of graduate or professional study. The total amount you can borrow as a graduate/professional student is $40,000. This includes any Federal Perkins Loans you borrowed as an undergraduate.

What are the interest rates?

Perkins loans have a fixed interest rate of 5 percent.

Is there a fee charged for these loans?

No. However, when you're out of school and in repayment, making a partial payment, paying late or skipping a payment may result in late charges. If your failure to make payments persists, you might have to pay collection costs as well.

How will I receive my loan?

Your school will either pay you directly (usually by check) or credit your account. Typically, the loan funds are sent in two or more installments.

When do I have to start repaying my loan?

Repayment of your Federal Perkins loan begins nine months after you graduate or drop below half-time enrollment. (If you're attending less than half-time, check with your financial aid administrator to determine your grace period.) This nine-month period, called a grace period, is designed to allow time for you to find a job. At the end of your grace period, you must begin making payments. You will have up to 10 years to pay off your loan. For more information on repaying your loan, contact your financial aid administrator.

Can my loan be cancelled or forgiven (discharged)?

A loan can be cancelled or forgiven only under specific circumstances and as long as you are not in default on the loan. A discharge releases you from all obligations to repay your loan. For more information on the qualifications for a cancellation, check with your financial aid administrator or visit www.studentaid.ed.gov.