How do I apply for a Perkins Loan?
The same way you do for other federal student aid—by completing the Application for Federal Student Aid (FAFSA). You don't need a separate loan application. But, you will need to sign a promissory note, a binding legal document that states you agree to repay your loan according to the terms of the note. Read this note carefully and save it.
How much can I borrow?
Perkins Loans
The Student Loan Comparison Chart shows the maximum Perkins Loan funds you can receive, depending on whether you're an undergraduate student or a graduate or professional student. But, the amount you can borrow might be less than the maximums given. Unlike for Stafford Loans, we provide each school participating in the Federal Perkins Loan program a certain amount of Perkins Loan funds each year. When all funds are used for that award year, no more awards can be made for that year. So, submit your Free Application for Federal Student Aid (FAFSA) as early as you can so you can be considered for these funds.
Student Loan Comparison Chart
| Loan Program |
Eligibility |
Award Amounts |
Interest Rate |
Lender/Length of Repayment |
| Federal Perkins Loans |
Undergraduate and graduate students; do not have to be enrolled at least half time |
Undergraduate—up to $4,000 a year (maximum of $20,000 as an undergraduate)
Graduate—up to $6,000 a year (maximum of $40,000, including undergraduate loans)
Amount actually received depends on financial need, amount of other aid, availibility of funds at school |
5 percent |
Lender is your school
Repay your school or its agent
Up to 10 years to repay, depending on the amount owed |
| FFEL Stafford Loans |
Undergraduate and graduate students; must be enrolled at least half time |
Depends on grade level in school and dependency status
Financial need not necessary |
Changes yearly; for 2004-2005 was 3.37 percent for loans in repayment
For those with financial need, government pays interest during school and certain other periods |
Lender is a bank, credit union, or other participating lender
Repay the loan holder or its agent
Between 10 and 25 years to repay, depending on amount owed and type of repayment plan selected |
| Direct Stafford Loans |
Same as above |
Same as above |
Same as above |
Lender is the U.S. Department of Education; repay Department
Between 10 and 30 years to repay, depending on amount owed and type of repayment plan selected |
| FFEL PLUS Loans |
Parents of dependent undergraduate students enrolled at least half time; parents must not have bad credit history |
Cost of attendanOther aid received
= Maximum loan amount |
Changes yearly; for 2004-2005, was 4.17 percent for loans in repayment; government does not pay interest |
Same as for FFEL Stafford Loans above |
| Direct PLUS Loans |
Same as above |
Same as above |
Same as above |
Same as for Direct Stafford loans above, except that Income Contingent Repayment Plan is not an option |
Other than interest, is there any other charge involved with these loans?
- Federal Perkins Loans—No.
- Direct and FFEL Stafford Loans—Yes, you'll pay a fee of up to 4 percent of the loan, deducted proportionately from each loan disbursement. Because of this deduction, you'll receive slightly less than the amount you're borrowing.
How will I be paid?emic year.
Perkins Loan—Your school will either pay you directly (usually by check) or credit your account. Generally, you'll receive the loan in at least two payments during the academic year.
Can I cancel my student loan if I change my mind, even if I've signed the promissory note agreeing to the loan's terms?
Yes. Your school must notify you in writing whenever it credits your account with your loan funds. You may cancel all or a portion of your loan if you inform your school within 14 days after the date your school sends you this notice, or by the first day of the payment period, whichever is later. (Your school can tell you the first day of your payment period.) If you receive your loan funds directly by check, you may refuse the funds by returning the check to the school. |
