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.



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.