Repaying Perkins Loans

Perkins Loans are administered by your school. 

Perkins Loan Payments
The grace period for a Perkins Loan is nine months after you complete your certificate program or are no longer enrolled. You then need to begin making on-time monthly payments. Unlike some other Federal loans, the Perkins Loan does not have a variety of payment plans. Rather, the amount of each monthly payment is based on the amount of the loan and the repayment period, which is generally 10 years.

Typical monthly payments for a ten-year repayment period are:

• If you borrowed a total of $4,000, you would pay $42.43 per month.
• If you borrowed $5,000, you would pay $53.03 per month.
• If you borrowed $15,000, you would pay $159.10 per month.

Loan Cancellation
The Federal government offers partial or full loan forgiveness to graduates who work in certain underserved fields. Loan cancellation may be available if you take a job in nursing, teaching, special education, or law enforcement. Cancellation may also be available if you join the armed forces or the Peace Corps after graduation. Ask your school for more details on cancellation options.

Financial Difficulty
If you have difficulty making your monthly payments, contact your lender to avoid defaulting on your loan. In some cases, a deferment or forbearance can be granted to temporarily decrease or postpone your payments. Deferment may also be available while you attend graduate school.

Setting Priorities
Graduation is a great time to create a new budget for yourself. In general, it's better to pay off your highest interest debts as quickly as you can. If you have multiple student loans with a variety of interest rates, a consolidation loan may be available so that you have one payment and one interest rate. By exploring your repayment options early, you could save yourself money and help build good credit.