Federal Perkins Loan Details and Requirements

The Federal Perkins Loan is a need-based loan program that provides financial assistance to undergraduate and graduate students.

To be eligible, you must be a student in a participating school and have financial need, as determined by the school's financial aid office.

The loan amount is determined by your school's financial aid office, but it can't exceed $5,500 per year for undergraduate students or $8,000 per year for graduate students.

You can borrow up to $27,500 in total, depending on how many years you receive the loan.

Additional reading: Do You Need Good Credit to Get a Student Loan

The Federal Perkins Loan program offers some unique benefits, especially when it comes to repayment. No payments are due while the student is enrolled at the half-time level or above at an accredited institution of higher education.

During the nine-month grace period following the end of enrollment, no payments are due either. This gives you some breathing room after you graduate or leave school.

Zero interest accrues during enrollment and during the grace period, which can help keep your loan balance from growing.

The repayment period for Federal Perkins Loans is 10 years, with 120 monthly payments. This can help make the loan feel more manageable.

Here are the key repayment details for Federal Perkins Loans:

Deferments are available if you enroll in a new degree program, become unemployed, or meet other criteria defined in the Perkins program regulations. Cancelation of part or all of the Perkins loan balance is available for borrowers who meet requirements for careers in teaching, firefighting, and other public service professions.

Worth a look: Kleiner Perkins

Your school is the lender for Perkins loans, which means you'll work directly with them to repay these loans. This can be a bit different from other federal loans, where you'd typically work with a loan servicer.

The repayment term for Perkins loans is up to 10 years, giving you plenty of time to pay back what you borrowed. You'll start making payments nine months after you graduate or drop below half-time enrollment in school.

If you're unsure about your loan type, you can check the U.S. Department of Education's Federal Student Aid website for more information.

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Repaying your Perkins loan is a bit different from other federal loans. Your school is the lender, so you'll need to work with them or a company they hired to repay the loan.

You may have received a different loan servicer for your Perkins loan than the rest of your federal loans. This is normal, and it's likely because you started paying back your loan nine months after you graduated or dropped below half-time enrollment in school.

The longest repayment term for Perkins loans is 10 years. This means you'll have a decade to pay back the loan, which can be a relief if you're not sure how you'll manage the payments.

If you're not sure if you have a Perkins loan, you can check the U.S. Department of Education's Federal Student Aid website to learn more about what type of loan you have.

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Interest Rate Information is a crucial aspect of repayment and interest. You can borrow with a 5% Fixed Rate, interest FREE while attending school at least half-time.

This rate is only available due to the school's allocation of funding, which can be limited. The loan's terms and benefits should be compared to other Federal loans.

A 9 month grace period is also included, giving you time to get back on your feet after graduation.

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Perkins Loans are eligible for Federal Loan Cancellation for individuals choosing to work in public service occupations such as early childhood education, elementary and secondary school teaching, speech therapy, nursing, law enforcement, librarian, public defense attorney, fire fighting, and certain active duty military postings.

Cancellation typically occurs on a graduating scale: 15% for year 1, 15% for year 2, 20% for year 3, 20% for year 4, and 30% for year 5.

For teachers, forgiveness may be restricted to designated low-income schools or specific teacher shortage areas such as math, science, and bilingual education.

Employment at a non-profit medical facility is required for nurses to be eligible for forgiveness.

A percentage of the loan is cancelled for each year spent teaching full-time, as long as the loan remains in good standing.

Check this out: Public Loan Forgiveness Application

The Federal Perkins Loan Disclosure Statement is an essential document that outlines the terms and conditions of the loan. It's a good idea to review this document carefully before applying for a Federal Perkins loan.

The Federal Perkins Loan Program ended on September 30, 2017, which means no new loans will be available after that date. However, if you received a disbursement of a Federal Perkins loan between June 30, 2017, and October 1, 2017, you may receive subsequent disbursements of that loan.

The interest rate for Federal Perkins loans is 5.00% fixed, and the grace period is 9 months. This is compared to the Direct Subsidized/Unsubsidized Loan, which has a 3.76% fixed interest rate and a 6-month grace period.

To qualify for a Federal Perkins loan, you must be awarded your full eligibility in Federal Direct Subsidized and Unsubsidized loans. If your eligibility changes, your Federal Perkins loan may be reduced or canceled.

Here are the key differences between Federal Perkins loans and Direct Subsidized/Unsubsidized loans:

*Interest rate is determined annually and will apply to loans from July 1 through June 30 of the following year.

It's worth noting that the repayment and forgiveness options for Federal Direct Loans are not available for Federal Perkins loans.