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The US federal government awards Perkins Loans to undergraduate and graduate students on the basis of need. Students can be enrolled part- or full-time and should apply by filling out a
Perkins Loans offer low fixed interest rates and a long grace period. The interest rate is fixed at 5%; repayment begins nine months after graduation, or if enrollment drops below half-time. Students have ten years to repay the loan, with minimum monthly payments set at $40 or more, depending on the size of the loan. The government subsidizes the interest while the student is in school and during grace and deferral periods.
Undergraduates can receive up to $4,000 annually in loans (up to a maximum total loan of $20,000); for graduate students the limit is $6,000 annually (up to a maximum total of $40,000, including undergraduate loans). However, the amount actually received by the student depends on the student's financial need, amount of other aid awarded, and the availability of funds at the school.
The government disburses a certain amount of Perkins Loan funds to schools each year. Students who apply for financial aid after the deadline, or after the funds have been allocated, might miss the opportunity to obtain a Perkins Loan, because the school won't receive more funds until the following school year.
More information about Perkins Loans can be found on the Federal Student Aid web site.
Last updated: April 26, 2006.
