Federal Perkins Loan Program

A Perkins loan was a low interest (5%) loan for both undergraduate and graduate students with exceptional financial need. Federal Perkins loans were made through a school’s financial aid office. The school is the lender and the loan is made with government funds. Repayment begins nine months after the student graduates, leaves school or drops below part-time status. The nine-month delay of repayment is called the grace period. You have ten years to repay the loan, excluding periods of deferment or forbearance, during which time payments are suspended.

 

Important:

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. A borrower who received a Perkins Loan can learn more about managing the repayment of the loan by contacting either the school that made the loan or the school’s loan servicer.