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Perkins Loans for Undergraduate and Graduate Students

NOTE: The authority for schools to make new Federal Perkins Loans ended on Sept. 30, 2017 and final disbursements were allowed by the U.S. Department of Education through June 30, 2018. Federal Perkins Loans are no longer an option offered by the federal student aid programs. 

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Interest Rate and Fees

The interest rate on the Federal Perkins loan is fixed at 5%. There are no fees.

Repayment

Repayment begins 9 months after the student graduates or drops below half-time enrollment. Interest remains subsidized during the 9-month grace period.

The Federal Perkins loan is repaid over a 10-year repayment term with equal monthly payments. There is a $40 minimum monthly payment. The monthly payment for $4,000 in Federal Perkins Loans is about $42.

Longer repayment terms may be obtained by consolidating the Federal Perkins loans into a Federal Direct Consolidation Loan. However, borrowers who consolidate the Federal Perkins loan will lose the remainder of the grace period, the subsidized interest benefit during deferment periods and the loan program’s favorable forgiveness and cancellation options.

Federal Perkins Loans are eligible for the student loan interest deduction.

Changes in the Federal Perkins Loan Program

If you are a Perkins loan borrower, you will need to repay your loan according to the terms and conditions included in your Promissory Note. 

If you have questions regarding their Perkins loan, it is best to contact the school who awarded them the loans or your assigned loan servicer—which may or may not be the school, but will be the company who sends you your bills. 

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