Federal Perkins LoanEligibility - A student must be enrolled or accepted for enrollment at least half-time in an eligible institution of higher education and must be a U.S. citizen, U.S. national or a permanent resident. The student must also be making satisfactory academic progress and meet the exceptional financial need requirement for consideration. In addition, the student must not be in default on any Title IV loans or owe a repayment on any Title IV funds. Males who are at least 18 years of age must be registered with the Selective Service Agency.
Maximum Amount - The annual maximum award for graduate/professional students is $6000 with a total aggregate amount of $40,000 including Perkins Loans borrowed as an undergraduate student.
Interest - The interest rate is 5% with interest being deferred until the student begins repayment that commences nine months after the student is no longer enrolled or completes his/her studies.
Grace Period - The grace period, during which time no interest accrues and no repayment begins, is nine months after the student is no longer enrolled or completes his/her studies.
Deferments - Repayment of the loan can be deferred for students who meet any of the following conditions:
- enrolled at least half-time at an eligible institution,
- pursuing a course of study in an approved graduate fellowship program or approved rehabilitation training program for disabled individuals excluding a medical internship or residency program,
- is unable to find full-time employment (maximum of 3 years),
- is suffering from an economic hardship (maximum of 3 years),
- is engaged in service eligible for loan cancellation (e.g. full-time nurse or medical technician, full-time employee of a public or private nonprofit child or family service agency who is providing or supervising the provision of services to high-risk children and their families from low-income communities).
Note: Students who have an outstanding balance on a Perkins Loan as of June 30, 1993, will be able to exercise their two-year residency deferment only on the loans disbursed before July 1, 1993.
Repayment - Repayment begins nine months after the student is no longer enrolled at least half-time at an eligible institution with a maximum repayment period of ten years. Installment payments are made monthly in accordance with the terms of the schedule provided by the school and agreed to by the borrower at the time of the exit interview. Federal Perkins Loans can be consolidated with the Federal Stafford Loan, Federal Supplemental Loan for Students and HPSL at the time of repayment.