A Perkins Loan is available to all students who have extreme financial need. To be considered for a Perkins Loan, student must fill out the FAFSA.
This student loan is made by the school to the student with funds provided by Department of Education. Once an institution has used up all of funds designated for Perkins Loans, no additional Perkins Loans may be made. So filling out the FAFSA early is very important.
Amounts Paid Out
The maximum amounts that may be awarded to undergraduate students is capped at $4,000.00 per year or (maximum of $20,000 as an undergraduate)
The maximum amounts that may be awarded to graduate students is capped at $6,000 a year (maximum of 40,000, including undergraduate loans)
The quoted amounts above are the maximum amounts that a student may barrow; the amounts received by students are based on financial need and availability of funds at their respective school.
Interest and Recap
Your school will either pay you directly (usually by check) or credit your account. Generally, you'll receive the loan in at least two payments during the academic year.
The interest rate for Perkins Loans has been locked in at 5 percent.
In recap, the lender is your school, and students must begin to repay loans nine months after leaving school.
Special Note: Perkins Loans have special discharge qualifications.