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Funding Your Education 1997-98Federal Perkins Loans |
CreditsSourceU.S. Department of Education's Office of Postsecondary EducationContentsCredits and AcknowledgmentsIntroduction Education after High School Paying Tuition and Other Costs Federal Pell Grants Campus-Based Aid Programs Federal and Direct Stafford Loans PLUS Loans (Loans for Parents) Stafford and PLUS Loan Questions Applying for Financial Aid Eligibility Criteria Deadlines and Verification Contacting the Department Reducing the Cost of School Taking the Next Step ForumsEducation and KidsRelated ArticlesPreparing Your Child For CollegeCollege Planning for Gifted and Talented Youth Getting Ready for College Advising High School Students with Learning Disabilities |
What is a Federal Perkins Loan?A Federal Perkins Loan is a low-interest (5%) loan for both undergraduate and graduate students with exceptional financial need. Federal Perkins Loans are made through a school's financial aid office. Your school is your lender, and the loan is made with government funds. You must repay this loan. How much can I borrow?Depending on when you apply, your financial need, and the funding level at the school, you can borrow up to $3,000 for each year of undergraduate study. The total amount you can borrow as an undergraduate is $15,000. Other than interest, is there a charge for this loan?No, there are no other charges. However, if you skip a payment, if it's late, or if you make less than a full payment, you may have to pay a late charge plus any collection costs. How will I receive the loan?Your school will either pay you directly (usually by check) or apply your loan to your school charges. You'll receive the loan in at least two payments during the academic year, unless your total Federal Perkins Loan is $500 or less (in which case a single payment per academic year is allowed). When do I pay back this loan?If you're attending school at least half time, you have nine months after you graduate, leave school, or drop below half - time status before you must begin repayment. This is called a grace period. If you're attending less than half time, check with your college or career school to find out how long your grace period will be. At the end of your grace period, you must begin repaying your loan. You may be allowed up to 10Êyears to repay the loan in full. Periods of deferment and forbearance do not count as part of this 10 - year period. Your monthly payment amount will depend on the size of your debt and the length of your repayment period. Can Perkins Loan payments be postponed?Under certain circumstances, you can receive a deferment or forbearance on your loan. During a deferment, no payments are required, and interest that accrues will be paid by the federal government. During forbearance, your payments are postponed or reduced. The government does not pay the interest; you are responsible for it. Can my Perkins Loan be canceled?If you die or become totally and permanently disabled, the loan can be canceled. You might qualify for having your loan canceled because of the type of work you do once you leave school - as long as you aren't in default. If you serve as an enlisted person in certain specialties of the U.S. Army, the Army Reserves, the Army National Guard, or the Air National Guard, the U.S. Department of Defense may, as an enlistment incentive, repay a portion of your Federal Perkins Loan. If you think you qualify, contact your recruiting officer. If you have more questions about Perkins Loans, check with the college or career school you plan to attend.
Campus-Based Aid Programs |
