Perkins Loans

The Federal Perkins Loan program offers college funding for students who meet guidelines for ‘exceptional financial need,' as defined by your school. If you meet financial eligibility requirements, you can borrow up to $4,000 per year directly from your school at a lower interest rate. Income and student status are important factors for this need-based loan.

Most schools use the same guidelines as those used for Federal Pell Grants to determine initial eligibility for Perkins Loans funds. Financial aid officers award money from their Perkins Loans allocation until it is depleted. Schools often use Perkins Loan funding to compete against each other to create attractive financial aid packages. To apply for a Perkins Loan, simply complete the FAFSA by your school's deadline.

Interest Rates and Fees
The Perkins Loan program is similar in many ways to the Stafford Loan programs. Instead of borrowing money from the Federal government or from a private lender, you borrow directly from your school. As long as you make your payments on time, your interest rate will be fixed at 5% for the life of the loan, You don't need to begin repaying your Perkins Loan until you leave school or drop below half time. You still have a nine month grace period before you must begin repayment.

Unlike Stafford Loans, Perkins Loans carry no origination fee. In most cases, your college's bursar will credit your Perkins Loan disbursement directly to your college account.

Loan Cancellation
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 in an under-served subject or school district, the Federal government will cancel all, or part, of your Perkins Loan debt. If you have questions about cancellation, contact your financial aid office.