Student Loans & Financial Aid info

What is a Federal Perkins Student Loan and What Can It Do for Me?

A Federal Perkins Student Loan is a low interest 5 % student loan for both undergraduate and graduate students with financial aid needs. Your school would be the lender. The student loan is made with government funds, and your school would also contribute a share of the funds. You are required to repay this type of student loan to your school.

How much can you borrow?

Depending on when you have applied, your level of financial need and the school’s funding level, you can borrow up to:

• $4,000 for each year of undergraduate study; however, the total amount you can borrow, as an undergraduate is $20,000.
• $6,000 for each year of graduate or professional study, or the total amount you can borrow as a graduate/ professional student is $40,000, including any Federal Perkins Student Loans you borrowed as an undergraduate.

Other than interest rates, are there any charges to getting this type of student loans?

No, you will not be charged any fees to take out this student loan. However, if you skip a payment, make a payment late, or make a partial payment, you will probably have to pay a late charge. If you continue to have a hard time making the payments as required, you will probably have to pay collection costs as well.

How will you be paid?

Your school can either pay you directly (usually by check) or credit your school account. Generally, you will receive the student loan in at least two payments during the academic year.

Can I cancel the student loan if I change my mind, even if I have signed the promissory note agreeing to the student loan’s terms?

Yes. Your school will have to notify you in writing whenever it credits your account with your Perkins Student Loan funds. The school must also send you this notification no earlier than 30 days before, and no later than 30 days after, the school has credited your account. You may still cancel all or a portion of your student loan if you inform your school you wish to do so within 14 days after the date your school sends you this notice, or by the first day of your payment period, whichever is later. Your school will be able to tell you the first day of your payment period. If you receive a Perkins Student Loan funds directly by check, you may simply returning the check.

When will I be required to pay back this student loan?

If you are attending school at least half time, you have nine months after you graduate, leave school, or drop below half time status before you will be required to begin repayment (you might have longer than nine months if you are on active duty with the military). This is called a grace period. If you are attending less than half time, check with your financial aid student office to determine your grace period. At the end of your grace period, you must begin repaying your student loan. You might even be allowed up to 10 years to repay.