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Federal Perkins Student Loans

Perkin student loans are low interest (5%) loans for students who can demonstrate financial hardship.  Perkins loans are provided by your school’s financial aid office where the school is the lender and the loan is paid with government funds.  You are responsible to repay the loan to your school.

Upon approval of a Perkins loan your school may pay you directly (by check) or apply the loan to your school charges.  The loan is paid in at least 2 payments during the academic year.

How much can I borrow?

You may borrow up to $5,500 each year of undergraduate study with a total of $27,000.  For graduate students, you may borrow up to $8,000 per year with a total of $60,000 which includes amounts borrowed as an undergraduate.

Is there a charge for a Perkins Student Loan?

There is no charge for a Perkins loan, however, a payment is skipped, is late or you make less than a full payment, you may pay a late free or collection costs.

When am I required to pay back a Perkins Student Loan?

If you attend school at least half-time, you have 9 months (grace period) after you graduate, drop out of school, or fall below half-time status to pay back the loan.  If you are attending less than half-time, check with your school to determine your grace period.

How do I qualify for a Perkins Student Loan?

To qualify for a Perkins Loan your must prove substantial financial need by first completing a FAFSA (Free Application for Federal Student Aid).  A student’s Expected Family Contribution (EFC) is then determined that must demonstrate a great financial need.

What are the benefits to a Perkins Student Loan?

The benefits to a Perkins Student Loan are as follows:
  • A cosigner isn’t needed.
  • You can have no credit or poor credit.
  • The federal government pays the interest as long as you are at least a half-time student in a degree program.  If the loan is ever in any type of deferment period, the government pays the interest.  This can potentially save you thousands of dollars in interest.
  • If you become a teacher you may qualify for a loan cancellation.  This means your loan is 100% cancelled and paid for by the federal government. 


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