Perkins Loans

The Federal Perkins Loan program offers educational funding for students with exceptional financial need. If your school determines that you are eligible for a Perkins Loan, you can borrow up to $4,000 per year directly from your school at a lower interest rate than other educational loans.

To apply for a Perkins Loan, simply complete a FAFSA online. Most schools determine Perkins Loans using the same guidelines as those they use for Pell Grants. Schools often use Perkins Loan funding to compete against each other to create attractive financial aid packages for qualifying students in need.

Perkins Loan Interest Rates and Fees
Perkins Loans are similar to Stafford Loans. Although funding for the Perkins Loan comes from the Federal government, you borrow Perkins Loans directly from your school. You don't need to begin repaying your Perkins Loan until you leave your online program or drop below half-time status. Once you begin repayment, the interest rate is fixed at 5% for the life of your loan as long as you make payments on time.

Unlike Stafford Loans, Perkins Loans carry no initial fees. You can put your 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 work as a teacher and meet the following criteria:

• Employed at a school serving students from low-income families
• Teaching in a special-education program, including programs educating infants, toddlers, children, or youth with disabilities
• Working in a field determined by your state education agency to have a shortage of qualified teachers

After five years of teaching in the above circumstances, the government may eliminate your entire Perkins Loan debt.