Federal Perkins Loans

For more information, contact:

TG Customer Assistance
(800) 845-6267
cust.assist@tgslc.org

A Federal Perkins Loan is a need-based loan made by the school to an undergraduate or graduate or professional student enrolled at least half time. A Perkins Loan has a 5% fixed interest rate and no loan fee.

How it works

Each school participating in the Federal Perkins Loan Program has a very limited amount of funds with which to make Perkins Loans, so if a student's school participates, it's important for the student to submit his or her Free Application for Federal Student Aid (FAFSA) early to be considered for a Perkins Loan.

How to apply

As with all federal student aid, a student applies for a Perkins Loan by completing the FAFSA. A student awarded a Perkins loan will also be required to sign a Federal Perkins Loan Master Promissory Note.

Loan amounts

The chart below shows the maximum Perkins Loan funds a student can receive, which depends on whether the student is an undergraduate, graduate, or professional student. However, the amount a student is awarded may be less than the maximum.

Undergraduate students	up to $5,500 a year (aggregate maximum of $27,500 as an undergraduate)
Graduate students	up to $8,000 a year (aggregate maximum of $60,000, including undergraduate loans)

The amount a student actually may receive depends on the student's financial need, the student's other estimated financial assistance, and the availability of funds at the school.

How the funds are delivered

The school is the lender and disburses the funds directly to the student or credits the student's school account. Generally, the school disburses the loan in at least two payments during the academic year.

Paying back the loan

A student begins repayment on a Perkins Loan after ceasing at least half-time enrollment and after a nine-month grace period. The borrower has up to 10 years to repay the loan. Perkins Loans do not have different repayment plan options. The borrower repays the school that loaned the money, or its loan servicing agent. The minimum payment is $40 per month.

Perkins Loans have deferments and forbearances, and loan cancellation options are available under certain circumstances. The promissory note provides information on these options; however, they are not automatic. The student must apply for them through the school or its loan servicing agent.

Perkins Loans may be included in a Federal Direct Consolidation Loan; however, the student will lose cancellation benefits that are only available under the Federal Perkins Loan Program.