The Federal Perkins loan program is a low interest, guaranteed need based loan provided in the student’s name for undergraduate and some graduate level students determined to have financial need based on review by the school’s office of financial aid.
Some features and things to know include:
- Available to undergraduate, graduate, and professional students with exceptional financial need.
- Interest rate for this loan is 5% and fixed.
- Not all schools participate in the Federal Perkins Loan Program. Check with your school’s financial aid office to see if your school participates.
- The school is the lender; payments are made to the school that made the loan or the school’s loan servicer. Loan repayment is used in turn to fund other new loans for new students.
- Funding is dependent on the student’s financial need and the availability of funds at the college.
- Maximum annual loan amount can be up to $5,500 for undergraduates and $8,000 for graduate students, but often much lower amounts are awarded based on availability of funds, and number of students with need.
- Because the Perkins Loan is subsidized by the government, interest does not begin to accrue until the borrower begins to repay the loan.
Learn more about the Perkins loan at Studentaid.ed.gov