Did You Know?
♦ Perkins loans are originated and serviced by participating schools and repaid to the school.
Perkins Loans (formerly called National Direct Student Loans, and before that National Defense Student Loans) are low-interest loans for both undergraduate and graduate students with exceptional financial need. Perkins Loans are originated and serviced by participating schools and repaid to the school. The government does not insure the loans, but instead provides money to eligible institutions to help fund the loans. If you default on a Perkins loan, it is usually the school that will come after you to collect. In some cases, the school will assign a Perkins loan to the Department of Education.
ALERT: Earlier in 2015, Congress failed to act to keep the Perkins program alive, so it officially expired as of September 30, 2015. The Department of Education posted information about the wind-down of the program. Then, in December 2015, President Obama signed a law temporarily extending the Perkins loan program for two years for eligible undergraduates and one year for eligible graduate students. The Department has posted information about the extension of Perkins.
Loan Terms, Fees, and Limits
Perkins loan interest rates are fixed, currently at 5%. There are no origination or other fees or charges for Perkins loans.
Perkins loan limits depend on when the borrower applies, the level of need, and the school’s funding level. Undergraduate students can borrow up to $4,000 for each year of undergraduate study up to a total of $20,000.