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Created in 1958, this program was formerly known as the
National Direct or National Defense Student Loan.
Student must be enrolled full or part time in an
undergraduate or graduate program at a postsecondary institution
participating in the Federal Perkins Loan Program. Student must be a
citizen or permanent resident of the United States. Priority is
given to students with the greatest financial need.
The Federal Perkins Loan is low interest and is based
entirely on need, as determined by the financial aid office. The
annual loan limits provide a maximum of $4,000 per year for
undergraduates and $6,000 per year for graduates. An aggregate
amount of $20,000 may be borrowed for undergraduate study, or
$40,000 for undergraduate and graduate study combined. The amount
the student borrows depends upon need and availability of funds.
Student applies for a Federal Perkins Loan by filling out the
Free Application for Federal Student Aid (FAFSA). The Federal
Perkins Loan may be included as part of the student's total
financial aid package developed through the college the student
attends. Annual application is required.
The current interest rate is 5% per year. Student signs a
promissory note upon receipt of each loan and must begin repayment
nine months after graduation or leaving school. Student has up to
ten years to repay the loan. Part of the Federal Perkins Loan may be
canceled for each year the recipient is a full-time special
education teacher, teacher of mathematics, science, foreign
language, or bilingual education; a full-time nurse or medical
technician; a full-time employee of a family service agency
providing services to high-risk children; for employment in a
criminal justice field; a Peace Corps volunteer; or a member of the
US Armed Forces serving in an area of hostility.
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