Federal Perkins Loans for College Students
Financial Help from the Government
A Federal Perkins Loan is a federally guaranteed loan that is disbursed through the college you will be attending. This low-interest, long-term loan is specially designed for those students with serious financial hardship.
Much less Perkins loans are available than Stafford loans or Pell Grants. Like the subsidized Stafford Loan, a Perkins is only approved to students with a proven financial hardship and inadequate EFC, or Expected Family Contribution.
You Can Apply Online Using the FAFSA Form
A Perkins Loan is only available for those students who can prove financial need. These loans are made directly through the college or university where you will attend. Because of this a small part of the loan amount is money directly from the educational institution.
You can apply for a Perkins Loan the same way you apply for any other Federal loan from the U.S. Department of Education, by filling out the FAFSA application, AKA the Free Application for Federal Student Aid. By filling out this application you are applying across-the-board for federal student aid, and not specifically for a Perkins Loan. Based on the financial information you provide, you are approved for a certain loan type and a certain monetary amount.
All federal loans must be reapplied for each academic year.
Loan Amounts
Loans are awarded for both undergraduate and graduate students with a serious financial hardship. The maximum annual amount disbursed for an undergraduate is $20,000 and for a graduate student, $40,000.
Repayment
Repayment on a Perkins loan begins approximately 90 days after you graduate or drop below half-time at an academic institution. This grace period is usual with most student loans and allows the student to find a job before regular monthly repayments commence. The average length of repayment of the debt is approximately 10 years without any deferments.
In the case of financial hardship, loan repayment may be rescheduled. If you received a Perkins Loan your college has detailed repayment and default information.
