Federal Perkins Loan Program
Program Type
Campus Based Loan Program
Purpose
Created in 1958, this program was formerly known as the National Direct or National Defense Student Loan. A Federal Perkins Loan is a low-interest loan for both undergraduate and graduate students with financial need. Your school is your lender, and the loan is made with government funds. You must repay this loan to your school.
Eligibility
- The Federal Perkins Loan is based entirely on need, as determined by the financial aid office at your school.
Value
$4,000 per year for undergraduates. $6,000 per year for graduates. An aggregate amount of $20,000 may be borrowed for undergraduate study, or $40,000 for undergraduate and graduate study combined. The amount the student borrows depends upon need and availability of funds. The current interest rate is 5% per year. Student signs a promissory note upon receipt of each loan and must begin repayment nine months after graduation or leaving school. Student has up to ten years to repay the loan. Part of the Federal Perkins Loan may be canceled for each year the recipient is a full-time special education teacher; teacher of mathematics, science, foreign language, or bilingual education; a full-time nurse or medical technician; a full-time employee of a family service agency providing services to high-risk children; employed in a criminal justice field; a Peace Corps volunteer; or a member of the US Armed Forces serving in an area of hostility.
Loan Disbursement
Once the loan is approved by your school, the proceeds from your Perkins loan will be sent directly to your school. You must contact the Financial Aid Office to make arrangements to receive your loan proceeds. Your school will either pay you directly (usually by check) or apply your loan to your school charges. You'll receive the loan in at least two payments during the academic year. You will receive a Disclosure Statement outlining the anticipated disbursement schedule, repayment schedule, and other terms.
Application Procedure
- Student applies for a Federal Perkins Loan by filling out the Free Application for Federal Student Aid (FAFSA).
- The Federal Perkins Loan may be included as part of the student's total financial aid package developed through the college the student attends. Annual application is required.
Other Information
GSFC does not administer or make Federal Perkins loans. For information regarding eligibility, please contact the financial aid office at your school after completing the Free Application for Federal Student Aid (FAFSA).
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