Interest Rates on the Federal Perkins Loan

Interest rates on Federal Perkins Loans are fixed. The current interest rate for new Federal Perkins Loans is 5.0%. There are no fees on the Federal Perkins Loan.

The interest rate on the Federal Perkins Loan has been fixed at 5.0% for all loans disbursed since October 1, 1981.

Student Loan Interest Deduction

Up to $2,500 total in interest on federal and private student loans may be deducted on the borrower’s federal income tax return each year. The deduction occurs as an above-the-line exclusion from income and so may be claimed even if the borrower doesn’t itemize deductions. This reduces the cost of the loan, the equivalent of a small reduction in the interest rate.

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