Affordable Education for Everyone

Loan Application

Federal Perkins Loan

A Federal Perkins Loan is a student loan for need-based students established by the United States Department of Education to aid College students in their post-secondary pursuits. Unlike regular subsidized or unsubsidized students loans, The Perkins Loans carry a 5% fixed interest rate for the ten-year period after enrollment. There is also a 9 month grace period, as opposed to the regular 6 month window. There are, however, a few limitations based on the fact that it is a government-specific loan, and those enrolled in high-priced private institutions may not have their tuition fully covered.

How Much A Student Can Borrow

The Perkins Loan provides greater leniency for those needing student assistance, but there is still a specific cap to the amount a lender can borrow. For one year of undergraduate study, the amount that can be borrowed is $5,500, while the total amount for a graduate or professional student is $8,500. This means that the respective totals for the two are $27,500 and $60,000. If you are a graduate or professional student, this total of $60,000 includes the amounts you may have borrowed as an undergraduate student.

Cancelling A Loan

There are no fees, but if payments are skipped or paid late, late charges can be administered by the school. If you need to cancel the loan, there are options available for you. Basically, you will receive written notification from your school that you have received the loan. You will have received this notification no later than 30 days after confirming your loan signup, and you will be able to return this piece of documentation within 14 days of the notice. If you receive the loan via check, then you may simply return the check within that time period.

If you are looking to pay your loan back, your grace period will be the 9 months after you have finished being a full-time student. That means if you have graduate, left school or committed to part-time education, then you have nine months to accrue some finances to help pay back the loan.

There are certain exceptions, however. The September 11th, 2001 terrorist attacks prompted changes in the rules for those in active duty. Institutions who are lending the Federal Perkins Loans during that time must withhold charges of the loan while they are in active duty. This status, however, cannot be maintained for more than three years.



The amount that you’ll have to repay will be based on the total debt you have accrued in your tuition. Again, the 5% interest will be tacked on to the amount required to repay. If you are having trouble with your repayments, you can file for a “deferment” or a “forbearance”, so long as the loan has not defaulted. Deferments, though, are not administered automatically, and in fact you must go through your school to file a deferment form. They will often demand documentation or perhaps some proof that it is difficult or impossible for repay the loans.

Tax Credits

There are also tax deductions available for some of the expenses of higher education, and if you continually pay these loans back, you may receive up to $2,500 in deductions on that year’s taxes. If you require more information on the subject, consult IRS publication 970 or get in contact with them via phone or email.