Perkins Loan Overview
What Is a Perkins Loan?
A Perkins Loan is a low-interest loan available to graduate and undergraduate students
who need help
paying for college.
Undergraduate students can receive as much as $5,500 a year and a total of $27,500
during the course of their undergraduate education. Graduate students can borrow
as much as $8,000 a year and $60,000 total.
With a low interest rate of 5%, the Perkins Loan is the most attractive federal
student loan option. You should definitely accept a Perkins Loan award if it is
offered by your college, and here is why:
- Outside of interest payments, there are hardly any fees to pay.
- You have a nine-month grace period after you graduate before you have to start
repaying the loan.
- The federal government pays the interest on your loan while you are enrolled in
college.
- You have 10 years to repay the loan.
- The Perkins Loan offers generous loan forgiveness to members of the military and
to other qualified students.
Perkins Loan Eligibility
To be eligible for a Perkins Loan, you must:
- Attend a college or university that participates in the Perkins Loan Program;
- Be enrolled at least half-time; and
- Demonstrate exceptional financial need.
Keep in mind that colleges have limited funds for Perkins Loans, so be sure to submit
your
federal student aid application (FAFSA)
as early as possible. You can submit your FAFSA as soon as January 1st prior to
the year you plan to attend college.
Applying for a Perkins Loan
Perkins Loans are available at 1,800 colleges across the country. When researching
colleges and universities, be sure to check with the school's financial aid department
to make sure that Perkins Loans are available.
To be considered for a Perkins Loan, you must submit a completed FAFSA. Usually,
Perkins Loans are offered to students with the lowest
expected family contribution (EFC).
Your EFC is determined by the Department of Education using the financial information
you provide on your FAFSA.