Eligibility for the Federal Perkins Loan is based on
demonstrated need using the federal need-analysis formula. Each
participating college has a pool of money from which they make
these five percent loans directly to students. The college
decides the amount of the loan and chooses the recipient.
Although you must repay this loan to your school, interest does
not accrue while you're a student, and you do not begin repayment
until nine months after graduation.
Depending on when you apply, your level of need, and the
funding level of the school, you can borrow up to $6,000 for each
year of graduate or professional study. The total amount you can
borrow is $40,000. (NOTE: this includes any Federal Perkins Loans
you borrowed as an undergraduate).
While a Perkins Loan borrower is not charged any fees, the
monthly payment amount will depend on the size of the debt and
the length of the repayment period. However, if a payment is
skipped, late, or less than the required amount, late charges
plus any collection costs will be added. Late charges will
continue until the payment is made.
If you are attending school at least half time, you have nine
months after you graduate, leave school, or drop below half-time
status before you must begin repayment. If you're attending less
than half time, check with your financial aid administrator to
determine your grace period. At the end of your grace period, you
must begin repaying your loan. You may be allowed up to 10 years
to repay.
Deferment &
Forbearance
Under certain circumstances, you can also receive a deferment or
forbearance on your loan. During a deferment, you are allowed to
temporarily postpone payments on your loan and have no interest
accrue. Deferments are not automatic. They are usually for
special conditions and must be applied for through your school by
using a deferment request form. For more details on deferments,
contact your financial aid office.
If you are temporarily unable to meet your repayment schedule
but are not eligible for a deferment, you can receive forbearance
for a limited and specified period. During forbearance, your
payments are postponed or reduced. Interest continues to accrue
and you are responsible for it. Forbearance isn't automatic
either. You may be granted forbearance in up to 12-month
intervals for up to three years. You must apply in writing for
forbearance through the school that made your loan or the agency
the school employs to service your loan. You will have to provide
documentation to support your request for forbearance and must
continue making scheduled payments until you are notified that
deferment or forbearance has been granted.
