Federal Perkins Loans
What is a Federal Perkins Loan?A Federal Perkins Loan is a low-interest (5 percent) loan for eligible undergraduate and graduate students with a preference to students with exceptional financial need. Your school is your lender and the loan is made with federal funds, matched in part by campus funds. You must repay this loan to your school.
How much can I borrow?
Depending on when you apply, your level of need, and the funding level of the school, 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, including teacher credential programs. The total amount you can borrow as a graduate/professional student is $30,000. (This includes any Federal Perkins Loans you borrowed as an undergraduate.)
A Perkins Loan borrower is not charged any fees to obtain the loan. However, when you're out of school and repaying the loan, if you skip a payment, make a payment late, or make less than a full payment, you may have to pay a late charge plus any collection costs. Late charges will continue until your payments are current.
When do I have to pay back the 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. This 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.
Can I postpone paying back my Federal Perkins Loan?
Yes. Under certain circumstances, you can receive a deferment or forbearance on your loan. During a deferment, you are allowed to temporarily postpone payments on your loan, and no interest accrues. Deferments are granted under certain conditions, such as unemployment.
Deferments are not automatic. You must apply for one through your school by using a deferment request form your school can give you. You must file your deferment request on time or you'll pay a late charge. For more details on deferments, contact your financial aid office.
If you are temporarily unable to meet your repayment schedule but are not eligible for a deferment, you can receive forbearance for a limited and specific period. During forbearance, your payments are postponed or reduced. Interest continues to accrue; you are responsible for it.
Forbearance isn't automatic either. You may be granted forbearance in up to 12-month intervals for up to three years. You must apply in writing for forbearance through the school that made your loan or the agency the school employs to service your loan. You'll have to provide documentation to support your request for forbearance. You must continue making scheduled payments until you are notified that deferment or forbearance has been granted.
Is it possible to postpone repayment of my Perkins Loan?
The Federal Perkins Loan Program offers borrowers a variety of forbearance and deferment options. For specific information about how to qualify for and apply for forbearance or deferment, contact the financial aid office or the collections office of your institution.
Is it possible to have my Perkins Loan cancelled or forgiven?
A borrower may have all or part of his or her loan (including interest) canceled for teaching, public service, service in the Peace Corps or ACTION, or in the military. For specific information about qualifying and applying for loan cancellation check with the financial aid office or collections office of your college or university.
[ top ]
