Federal Perkins loans
Federal Perkins Loans are awarded to students with exceptional financial need. This is a campus-based loan program, with the school acting as the lender using a limited pool of funds provided by the federal government.
- Interest rate is fixed at 5%
- No loan fees
- Interest is paid by the federal government during the in-school and nine-month grace periods
- Federal regulations prevent us from awarding this loan to any new borrowers
Important note: Loan repayment and forgiveness benefits that are available to Federal Direct Loan borrowers are not available for Federal Perkins loan borrowers. However, Perkins Loans can be consolidated with Federal Direct loans and the borrower would then receive all Direct loan benefits, including income-based and pay-as-you-earn repayment plans and Public Service Loan Forgiveness benefits. If you consolidate a Federal Perkins loan you will lose Perkins loan cancellation benefits available for low-income teacher, nurse/med tech, law enforcement, and firefighters.
Perkins loans are available to current undergraduate borrowers who have reached the maximum annual Direct Subsidized loan borrowing limits for which they are eligible; and to new undergraduate borrowers who have reached the maximum annual Direct Subsidized and Unsubsidized loan borrowing limits for which they are eligible.
Federal Direct loans for undergraduates have a fixed variable rate based on the 10 yr. T-note plus 2.05%, not to exceed 8.25%. The current Direct loan interest rates are 4.29% compared to the Federal Perkins loan, which has a fixed 5% interest rate.
The Federal Perkins Loan program expires 9/30/17.