Perkins Loans

The Federal Perkins Loan program offers college funding for students who meet guidelines for ‘exceptional financial need,' as defined by your college or university. If you meet financial eligibility requirements, you can borrow $4,000 per year directly from your school at a lower interest rate. Financial aid officers at your school will use their aid distribution policies, as well as Federal recommendations, to decide which students qualify for Perkins Loans.

Most schools use the same guidelines as Pell Grants to determine initial eligibility for Perkins Loan funds. Financial aid officers award money from their Perkins Loan allocation until it is depleted. Schools often use Perkins Loan funding to compete against each other to create attractive financial aid packages.

Interest Rates and Fees
In many ways, Perkins Loans are very similar to Stafford Loans. Instead of borrowing money from the Federal government or from a private lender, you are borrowing money directly from your school. Your interest rate is fixed at 5% for the life of the loan, as long as you make your payments on time. You will not need to begin repaying your Perkins Loan until you have completed or left your certificate program.

Unlike Stafford Loans, Perkins Loans carry no origination fee. Therefore, you'll be able to put your full loan amount toward your college expenses. In many cases, your college's bursar will credit your loan disbursement directly to your college account.

Loans Forgiveness
If you decide to pursue a career as a teacher, you can actually have all or a part of your Perkins Loan cancelled. In exchange for your service and dedication in an underserved subject or school district, the Federal government will wipe out all or part of your Perkins Loan debt. After five years of teaching in an eligible elementary or secondary school, the government will eliminate 100% of your Perkins Loan debt.

Talk to your financial aid counselors during the application process to understand how your prospective college or university disburses its Perkins Loan funds. To apply for a Perkins Loan, simply complete a FAFSA and have it sent to your school.