Named after Carl D. Perkins, a former member for the U.S. House of Representatives, Perkins Loans are need-based student loans offered by the U.S. Department of Education. The loans are made available to American college students to finance their post-secondary education. 

Requirement & Eligibility

• You are a U.S. citizen, permanent resident, or eligible non-citizen.
• You are enrolled at least half time in a degree program.
• You must maintain satisfactory academic progress at your school.
• You do not currently have any Federal loans that are in default.
• You satisfy all Selective Service Requirements.

Interest Rates
The interest rate is fixed at 5% for the ten-year repayment period. The Perkins Loans are subsidized by the government and interest does not accrue until the beginning of repayment. 

Borrowing Limits
If you are an undergraduate student, you can borrow up to $ 4,000 each year, and $ 27,500 in total.

If you are a graduate student or doing profession study, you can borrow up to $ 8,000 each year and $ 60,000 in total. 
 

Applying for a Perkins Loan

The application process for Perkins Loans is relatively simple, as you are automatically considered when you file your FAFSA.  However, since FAFSA's are reviewed through an ongoing basis, it is very important to file it early, as you get first-dip on this.

Step 1: Fill out FAFSA by the Deadline
Indicate on FAFSA that you are applying for a Federal Perkins Loan. Perkins Loans are awarded on a first-come, first-served basis. So you might want to file your FAFSA early. 

Step 2: Check Your Status
You will be notified whether or not you are awarded a Perkins Loan by receiving your award letter from the college. You can check your award status on PANTHER after July 1st of the award year. 

Step 3: Complete Online Entrance Counseling Session 
You must complete an online Perkins Loan entrance counseling session, during which you will learn about your rights and responsibilities. 

Step 4: Sign a Promissory Note
You will also need to sign a promissory note. It is a legal agreement that lists the terms and conditions under which you borrow and repay.

After going through the four steps, you can pick up your loan check. Based on the Financial Aid Disbursement Schedule, you get your checks twice an academic year. 


Following Through - Repayment Options

You have nine months after your graduation before you begin repayment. You may be allowed to repay for as long as 10 years. The table below provides an example of repayment. Monthly payment varies based on the size of your loan and the length of repayment period. 

Consolidation
Perkins Loan is eligible for Federal loan consolidation. By consolidating your loans, you can combine all your student loans into one consolidated loan and extend your repayment term from standard 10 years to up to 30 years. You will benefit from lower monthly payments at a cost of larger interest payments. For more details, please check out Student Loan Consolidation: When and How.