At select schools, undergraduate and graduate students are eligible for Perkins Loans from the federal government. Perkins Loans differ from private loans because you will not undergo a credit check and the government pays your interest while you are in school until your grace period ends. To be considered, you must complete a Free Application for Federal Student Aid (FAFSA), send your FAFSA results to your school, and contact your financial aid office to determine whether a Perkins Loan will be included in your award package.
Significance
Although the federal government funds the Perkins Loans program, your debt must be repaid to your school. Unlike private loans, there are no origination or default charges so the only additional fee you incur besides the loan principal is the interest.
Amount
Loans range from up to $5,500 a year for undergraduates to $8,000 a year for graduate students. Your financial need, other aid received, and availability of school funding all contribute to your maximum loan amount.
Deadline
Since Perkins Loan funding is limited, you should apply for financial aid as soon as possible. Once your school runs out of allocated money, no additional Perkins Loans will be issued.
Repayment
There is a nine-month grace period after you graduate, leave school, or drop below part-time status, after which you must begin repaying the loan. Keep in mind that there are ways to get your loan forgiven, such as if you volunteer with the Peace Corps or perform military service.
Questions
If you have any questions, contact your school's financial aid office. Find out whether your school participates in the Perkins Loan program. You also can contact the Federal Student Aid Information Center at (800) 4FED-AID.
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