Federal Perkins Student Loans
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.