The Federal Perkins loan is a fixed, 5% interest rate loan. It is available to undergraduate and graduate students who demonstrate exceptional financial need and who have already exhausted their Federal Stafford loan eligibility for the year. Since there is a limited pool of Federal Perkins loan funds each year, these loans are awarded first to students who meet all priority deadlines. Federal Perkins loans typically range up to $2000 per year for undergraduate students and up to $4000 per year for graduate and law students.

Students awarded a Federal Perkins loan will be required to sign and return a promissory note that covers not only the student's rights and responsibilities, but also the cancellation and deferrment features of the loan, some of which are listed below.

Perkins student loans are normally offered as part of a larger financial aid package that can include other federally funded programs, state funds and private loans and scholarships. They are all used in combination to cover the entire cost of your college tuition, in conjunction with any funds that you put forth yourself.
Perkins loans offer several advantages to students compared to other loan programs. They have a fixed interest rate of 5 percent for the ten year repayment period. You can borrow up to $4,000 per year if you qualify for the student loan program. There is a maximum of $20,000 for undergraduate programs that an individual can borrow from the program. For graduate students, there is a maximum of $6,000 allowed per year and a total lifetime of $40,000 (which includes undergraduate loans).

Unlike other loans, you can’t apply for the Perkins loan specifically. Once you fill out a FAFSA, you’ll be notified if you are eligible for the Perkins loan. If you are awarded with a Perkins loan package, you’ll sign a promissory note and a statement of rights and responsibilities form. After you turn in this paperwork, the loan funds will be disbursed to your student account at your college. Each year when you turn in a FAFSA, you may or may not be awarded a Perkins loan.

The Perkins loan is an agreement between you and the school you are attending. It’s not eligible to be “bought out” by another lending institution, but it can be part of a consolidation package. You have a nine month grace period after you graduate to start repaying your loan. Your grace period starts when you drop below part time status in school, you graduate or you quit school.

So how much aid could you ideally receive under a Perkins Loan? What you actually receive is based on available college funds at the time, totally regardless of loan limits. There is only a certain chunk of funds given to a school for Perkins students. Your best strategy for winning Perkins Loans: apply early for the FAFSA and college admission. The campus is free to dispense Perkins Loans in arbitrary amounts as students are accepted and become eligible for funds.

he Perkins Loan is packaged with a 5% interest rate and a 2010-month grace period. Attend school at least half time and like a subsidized Stafford Loan you are not responsible for interest until repayment begins. The average length of repayment of the loan is approximately 10 years, barring any loan defaults or loan deferments.

When you begin making payments on your Perkins Loan you will most likely be billed by a student loan servicing company. Companies like these enter into contracts with colleges and universities to provide financial support for campus-based student loans.

Perkins Loans are borrowed from and repaid directly to the University of Oregon. It is important not to confuse Perkins Loans with other student loans you may have borrowed, such as the Federal Direct Student Loans, private educational loans through banks, Guaranteed Student Loans etc.