|
The Federal Perkins Loan has a low interest rate and a longer grace period than the other educational loans, and allows a student to borrow up to $4,000 (undergraduate study) or $6,000 (graduate study) annually. This loan is available to undergraduate and graduate students with demonstrated financial need, and must be repaid to the school with an interest rate of 5 percent. Repayment begins nine months after a student graduates or drops below half-time enrollment status. The minimum monthly payment is $40 per month. Application for the Federal Perkins Loan is made by completing a Free Application for Federal Student Aid (FAFSA). The school’s financial aid administrator determines a student’s eligibility for the loan based on his or her calculated expected family contribution. The college is the lender for the loan, so the student will be asked to sign a promissory note and will receive the loan funds from the school.
A student can receive both a Federal Perkins and a Federal Stafford loan in the same academic year, provided he or she meets all eligibility requirements.
Additional information regarding the Federal Perkins Loan is available at the online version of The Student Guide, provided by the U.S. Department of Education.
Click here to access the Free Application for Federal Student Aid (FAFSA).
|
