FEDERAL PERKINS LOAN A Federal Perkins Loan, or Perkins Loan, is a need-based student loan. It is offered by the U.S. Department of Education to assist American college students in funding their post-secondary education. The program is named after Carl D. Perkins, a former member of the U.S. House of Representatives from Kentucky.
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Federal Perkins Loan
Some facts about Federal Perkins Student Loan
Perkins Loans carry a fixed interest rate of 5% for the duration of the ten-year repayment period.
Perkins Loan Program has a nine-month grace period, so that borrowers begin repayment in the tenth month upon graduating, falling below half-time status, or withdrawing from their college or university>
Perkins loan is subsidized by the government and the interest does not begin to accrue until borrower begins to repay the loan.
The loan limits for undergraduates are $4,000 per year with a lifetime maximum loan of $20,000.
For graduate students, the limit is $6,000 per year with a lifetime limit of $40,000 (including undergraduate loans).
Perkins Loans are eligible for Federal Loan Cancellation for teachers in designated low-income schools, as well as for teachers in designated teacher shortage areas such as math, science, and bilingual education. A percentage of the loan is cancelled for each year spent teaching full-time.
