Federal Perkins Loan
Federal Perkins Loan also called Perkins Loans is a school-based program. It is a low interest federal student loan for undergraduate and graduate students with high financial need. The interest rate for this loan is 5%. You should check with your school’s financial aid office to see if your school participates in this program. Make all your loan repayments to your school as your school is the lender.
Note: This loan program is not in practice anymore.
Amount of Federal Perkins Loan
Like other loans, Federal Perkins Loan is given depending upon your financial need. An undergraduate student is eligible to receive up to $5,500 a year and a total of $27,500. A graduate or professional student can receive up to $8,000 a year. The total that a graduate student can borrow is $60,000.
Other than the 5% interest rate, no other interest is charged. However, if your payment is late or you skip a payment, you will have to shell out a late charge and other collection fees.
Receiving your Federal Loan
The school will pay for tuition fees, room and board, and other school charges from the loan funds received directly in your school account.
Canceling your Loan
You can cancel your full or part loan before it is disbursed by notifying your school. Even after your loan is disbursed you can cancel part or full within a specified time-frame.
How do you pay back your loan?
You get nine months after you graduate or leave school before you start your repayment, after attending at least half-time school. Check with your college to find out the grace period you would need to repay your loan, if you have not attended even half-time school.
Note: According to studentaid.gov, "under federal law, the authority for schools to make new Perkins Loans ended on Sept. 30, 2017, and final disbursements were permitted through June 30, 2018. As a result, students can no longer receive Perkins Loans."
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