Federal Perkins Loans

A Federal Perkins loan is a low interest (5%) loan for undergraduate and graduate students with “exceptional” financial need.
Perkins loan qualification requirements

* Enrollment in an eligible school at least half-time in a degree program
* U.S. citizenship, permanent residency, or eligible non-citizen status
* Satisfactory academic progress
* No unresolved defaults or overpayments owed on Title IV education loans and grants
* Satisfaction of all Selective Service requirements

The U.S. Department of Education provides a programmed amount of funding to the school. In turn, the school determines which students have the greatest need. The school combines federal funds with some of its own funds for loans to qualifying students.

To apply for the Federal Perkins loan program, you must submit the Free Application for Federal Student Aid (FAFSA).

Your school will 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.

Federal Perkins loans share many of the characteristics of subsidized Stafford loans. The most notable differences are no fees and a longer grace period.