Federal Perkins Loans
What is a Federal Perkins Loan?
A Perkins Loan is a low-interest loan for eligible undergraduate and graduate students with a preference to students with exceptional financial need. Your school is your lender and the loan is made with federal funds, matched in part by school funds. You must repay this loan to your school.
How much can I borrow?
Depending on when you apply, your level of need, and the loan funds available at your school, you can borrow up to:
- $4,000 for each year of undergraduate study. The total amount you can borrow as an undergraduate is $20,000, and you are limited to $8,000 if you have not completed two years of undergraduate work.
- $6,000 for each year of graduate or professional study, including teacher credential programs. The total amount you can borrow as a graduate/professional student is $40,000. (This includes any Federal Perkins Loans you borrowed as an undergraduate.)
Are there any fees for this loan?
A Perkins Loan borrower is not charged any fees to obtain the loan. However, when you are out of school and in repayment, if you skip a payment, make a payment late, or make less than a full payment, you may have to pay a late charge plus any collection costs. Late charges will continue until your payments are current.
When do I have to pay back the loan?
If you are attending school at least half time, you have nine months after you graduate, leave school, or drop below a half-time enrollment status before your payments become due. This is called a grace period. If you are attending less than half time, check with your financial aid administrator to determine your grace period. At the end of your grace period, you must begin repaying your loan. You may be allowed up to 10 years to repay.
Can I postpone paying back a Federal Perkins Loan?
Yes. Under certain circumstances, you can receive a deferment or forbearance on your loan. During a deferment, you are allowed to temporarily postpone payments on your loan, and no interest accrues. You may receive a deferment under certain conditions, such as being unemployed. They are not automatic. You must apply for one through your school by using a deferment request form your school provides. You must file your deferment request on time or you'll be charged a late fee. For more details on deferments, contact your financial aid office.
If you are temporarily unable to meet your repayment schedule but are not eligible for a deferment, you may receive forbearance for a limited and specified period of time. During forbearance, your payments are postponed or reduced. If you don't pay the interest that accrues during your forbearance period, it will be capitalized when repayment begins again.
Forbearance is not automatic. You may request a forbearance for up to 12 months at a time, for a total period not to exceed three years. You must apply in writing for forbearance through the school that made your loan or the agency the school employs to service your loan. You will have to provide documentation to support your request for forbearance. You must continue making scheduled payments until you are notified that your deferment or forbearance has been granted.