Aug 8 2017

Federal Perkins Loans #loans #for #poor #credit

#federal perkins loan

Federal Perkins Loans

A Federal Perkins loan is a need-based loan made by the school to an undergraduate or graduate or professional student enrolled at least half time. A Perkins loan has a 5% fixed interest rate and no loan fee.

Effective October 1, 2015, schools can no longer make Federal Perkins loans to new borrowers. If prior to October 1, 2015, a school made the first disbursement of a Perkins loan to a student for the 2015-2016 award year, the school may make any remaining disbursements of that loan after September 30, 2015. In addition, some current borrowers who received at least one Perkins disbursement on or before June 30, 2015, may continue to receive Perkins for up to an additional five years if they meet certain conditions. Contact your school for more information.

How it works

Each school participating in the Federal Perkins Loan Program has a very limited amount of funds with which to make Perkins Loans, so if a student’s school participates, it’s important for the student to submit his or her Free Application for Federal Student Aid (FAFSA) early to be considered for a Perkins loan.

How to apply

As with all federal student aid, a student applies for a Perkins loan by completing the FAFSA. A student awarded a Perkins loan will also be required to sign a Federal Perkins Loan Master Promissory Note.

Loan amounts

The chart below shows the maximum Perkins Loan funds a student can receive, which depends on whether the student is an undergraduate, graduate, or professional student. However, the amount a student is awarded may be less than the maximum.

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