Repaying Perkins Loans

Perkins Loans offer a low interest rate, fixed at 5%, and a nine-month grace period after you graduate or otherwise leave school.

Once your grace period ends, you need to begin making on-time monthly payments toward your Perkins Loan. Unlike other federal student loans, the Perkins Loan program offers only one payment plan.

Exit Counseling
If you've received a Perkins Loan or other federal student loan, your school or lender is required to provide you with exit counseling an explain the Perkins Loan repayment plan. Your exit counselor should be able to calculate the monthly payments for your Perkins, as well as for your other federal student loan.

Canceling Your Loans
If you enter a career in teaching, nursing, or law enforcement in parts of the country experiencing shortages in these jobs, you may be eligible to have your Perkins Loan either partially or fully cancelled. You are also eligible for loan cancellation if you join the Peace Corps or enlist in the military.

Perkins Loan: Don't Default
If you're unable to find a full-time job after you graduate, or if your job does not pay well enough to afford your Perkins Loan payment, contact your lender immediately. If you let it slide, your loan could go into default. This will reflect poorly on your credit score and possibly hurt your chances of purchasing a house later on.

In some cases, you can apply for forbearance or a deferment to postpone your monthly principle payments. If you choose to return to school, you may also be eligible for loan deferment.

Prioritizing Debt
Pay off higher interest debts faster than lower interest ones. If you can't make the payments on all of your student loans, consider loan consolidation. Just make sure you're not consolidating at an unreasonably high interest rate. Keeping your debt under control and making timely payments helps you build good credit and keeps your financial future more open.