Federal Perkins Loans

A Federal Perkins Loan is a low-interest (5 percent) loan for both undergraduate and graduate students with financial need. The loan is made with government funds, and your school contributes a share. You must repay this loan to your school.

Depending on when you apply, your level of need, and the school’s funding level, you can borrow up to $4,000 with a Federal Perkins Loan for each year of undergraduate study (the total amount you can borrow as an undergraduate is $20,000) or $6,000 for each year of graduate or professional study (the total amount you can borrow as a graduate/ professional student is $40,000, including any Federal Perkins Loans you borrowed as an undergraduate).

There is no charge to get these loans but you will pay interest on them. However, if you miss a payment, make a payment late, or make less than a full payment, you might have to pay a late charge. If you become delinquent in your payments, you might have to pay collection costs as well.