Federal Perkins Loans
The Perkins Loan program was extended in the Federal Perkins Loan Program Extension Act of 2015 on December 18, 2015. No new Perkins Loans will be made after September 30, 2017. Perkins Loans are:
- Low-interest loans for undergraduate and graduate students with exceptional financial need.
- Made with government funds through a school’s financial aid office, and the school acts as the lender.
- You are not responsible for paying the interest on the loan during in-school, grace, and deferment periods.
Interest Rate
Perkins Loans have a fixed interest rate of five percent.
Loan Limits
The actual amount you could receive depended upon your financial need and the school’s level of funding.
Undergraduate students
- Up to $5,500 a year
- The Federal Perkins Loan Program Extension Act of 2015 created new Perkins Loan eligibility criteria:
- If you have an outstanding balance on a Perkins Loan at the school, the school will award you a Direct Subsidized Loan before a Perkins Loan.*
- If you do not have an outstanding balance on a Perkins Loan, the school will award you all Direct Subsidized and Unsubsidized Loans for which you are eligible before a Perkins Loan.*
- Aggregate (cumulative) loan limits of $27,500
Graduate / Professional Students
- Up to $8,000 a year
- Per the Perkins Loan Extension Act of 2015, eligible graduate students who received a Perkins Loan before October 1, 2015 may continue to receive Perkins Loans to continue or complete the academic program for which the student received the most recent Perkins Loan.*
- Aggregate (cumulative) loan limits for undergraduate and graduate combined of $60,000
Non-Undergraduate or Non-graduate / Professional Students
- Aggregrate (cumulative) loan limits of $11,000
- *You may choose not to borrow the Direct Loan(s), but the Direct Loans will be included in the eligibility calculation for the Perkins Loan.
Loan Repayment
After you stop attending school at least half time, your grace period begins.
- Your initial grace period is nine months.
- If you re-enroll in school at least half time during this grace period and are approved for an in-school deferment, you get another 9-month grace period the next time you stop attending school.
- If you re-enroll after your initial 9-month grace period has ended, your next grace period will only be six months.
Repayment begins after the grace period ends.
- The maximum repayment period is 10 years.
- Payments are expected each month.
- The minimum monthly payment is $40, but may be higher depending on your balance.
- You may prepay your loan at any time without penalty. Prepayment may substantially reduce your interest costs.
If you ever have difficulty repaying your loan, contact your school or its loan servicer immediately, as you have options, including deferment and forbearance!
Deferment and Forbearance
If certain special circumstances arise that make it temporarily difficult for you to make your loan payments, you may qualify for a deferment or forbearance.