Perkins Loans

You may already be familiar with Perkins Loans from your time as an undergraduate, but the details of the loan on the graduate or doctoral level are somewhat different.

The Federal Perkins Loan program offers educational funding for students with exceptional financial need. To apply for a Perkins Loan, you must complete a Free Application for Federal Student Aid (FAFSA) online every year. Schools often use Perkins Loan funding to compete against each other to create attractive financial aid packages for qualifying students in need. You may be able to use Perkins Loan funds as an additional incentive to choose one school over another.

Graduate or doctoral students who qualify for a Perkins Loan can borrow up to $6,000 per year, up to a total of $40,000 over the course of your education, including any Perkins Loans received as an undergraduate. Although funding for the Perkins Loan comes from the Federal government, you borrow Perkins Loans directly from your school. 

Interest Rates and Fees 
If you're already receiving Stafford Loans, you'll find that Perkins Loans are similar. You don't need to begin repaying your Perkins Loan until you complete or leave your graduate or doctoral program. Once the repayment period begins, your interest rate is fixed at a low 5% for the duration of repayment as long as you make payments on time.

Unlike Stafford Loans, Perkins Loans carry no initial fees, and you can put the full loan amount toward your educational expenses. Contact your school's financial aid office to find out how to receive your Perkins Loan funds. 

Cancellation Programs 
One of the most attractive features of the Perkins Loan is its deferment and cancellation options. You may be eligible to have all or part of your Perkins Loan cancelled if you meet one of the following criteria:

• Employed at a school serving students from low-income families
• Employed as a full-time nurse or medical technician
• Employed full-time as a law enforcement or corrections officer
• Teaching in a special-education program, including programs educating infants, toddlers, children, youth with disabilities, or in a field determined by your state education agency to have a shortage of qualified teachers

The government may eliminate your entire Perkins Loan debt after a specified amount of time in one of the above careers. Typically, the work requirement time is five years. Talk to your school's financial aid department for more information on Perkins Loans.