Perkins Loans

If your financial need overextends an already bursting budget, the Federal Perkins Loan may be perfect for you. This loan program offers funding for students who meet guidelines for 'exceptional financial need.' If you meet your school's financial eligibility requirements, it's possible to borrow up to $4,000 per year, directly from your school, and at a lower interest rate than most Federal and private loans. Your income and student status are important factors for this need-based loan.

Schools often use Federal Perkins Loan funding to compete against each other for students. As a student looking for financial aid, you benefit from this competition. Financial aid offices award money from their Perkins Loans allocation until it is depleted. Complete your FAFSA online by your school's deadline and your Perkins Loan application will be included automatically.

Perkins Loan Interest Rates and Fees
The Perkins Loan program is similar in many ways to many Federal aid programs. You'll generally receive payments for each term in the academic year. In most cases, your school's bursar will credit your Perkins Loan disbursement directly to your school account. As long as you make your payments on time, your interest rate will be fixed at 5% for the life of the loan. After you leave school or drop below half time, your nine month repayment grace period will begin. This gives you time to find employment after you leave school. 

Unlike the Stafford Loan, the Perkins Loan does not include origination fees. However, if you cannot make payments on time, you may be charged a late fee.

Canceling Your Perkins Loan
In a few situations, it's possible to cancel all or part of your Perkins Loan. If you pursue a career as a teacher in an under-served subject or school district, the Federal government will cancel all of your Perkins Loan debt after five years of service. For questions about getting your Perkins Loan cancelled, contact your school's financial aid department.