Perkins Loans

What is a Perkins Loan?

A Perkins Loan is a federal loan for students with great financial need. It is a low-interest loan that is someone similar in detail to a subsidized Stafford Loan.

The most notable differences are:

• no fees
• a longer grace period

The interest is paid by the government while the student is in school, and during a 9-month grace period. There are no origination or guarantee fees, and the interest rate is 5%. There is a 10-year repayment period.

The U.S. Department of Education provides an allotment of funding to each school. The school then determines which students have the greatest financial need. The final loan is a combination of the federal funding and some of the school's own money. Your school is the lender, and you repay the loan to your school.

To apply for this loan program, you must submit the Free Application for Federal Student Aid (FAFSA). When you get your financial aid poackage from your school, it will tell you whether you're eligible to receive a Perkins Loan. To actually get the loan, you must follow the directions in your financial aid package.

Your school will 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.

The current U.S. Presidential administration is looking to soon eliminate this program and redirect the funds to other aid programs. Click here for more details.