FEDERAL PERKINS LOAN
If you are eligible for a Federal Perkins Loan, an amount will be listed on your award letter. Please review this information carefully before you decide to borrow.
What is a Federal Perkins Loan?
A Federal Perkins Loan is a low-interest (5 percent) loan for both undergraduate and graduate students with financial need. Your school is your lender. The loan is made with government funds, and your school contributes a share. You must repay this loan to your school.
How much can I borrow?
Depending on when you apply, your level of need, and the school's funding level, 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, including any Federal Perkins Loans you borrowed as an undergraduate).
Other than interest, is there any charge to get these loans?
No, you're not charged any fees to take out the loan. But, if you skip a payment, make a payment late, or make less than a full payment, you might have to pay a late charge. If you continue not making payments as required, you might have to pay collection costs as well.
How will I be paid?
Your school will either pay you directly (usually by check) or credit your account. Generally, you'll receive the loan in at least two payments during the academic year.
Can I cancel the loan if I change my mind, even if I've signed the promissory note agreeing to the loan's terms?
Yes. Your school must notify you in writing whenever it credits your account with your Perkins Loan funds. The school must send you this notification no earlier than 30 days before, and no later than 30 days after, the school credits your account. You may cancel all or a portion of your loan if you inform your school you wish to do so within 14 days after the date your school sends you this notice, or by the first day of the payment period, whichever is later. (Your school can tell you the first day of your payment period.) If you receive Perkins Loan funds directly by check, you may refuse the funds by returning the check.
When do I pay back this loan?
If you're attending school at least half time, you have nine months after you graduate, leave school, or drop below half time* status before you must begin repayment (you might have longer than nine months if you're on active duty with the military). This period of time is called a grace period. If you're attending less than half time, check with your financial aid administrator to determine your grace period. At the end of your grace period, you must begin repaying your loan. You may be allowed up to 10 years to repay.
How much will I have to repay each month?
Your monthly payment amount will depend on the size of your debt and the length of your repayment period.
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