Federal Perkins Loans help financially needy undergraduate students and graduate students meet the cost of postsecondary education.

Program Description
Federal Perkins Loans help financially needy undergraduate students and graduate students meet the cost of postsecondary education. The award is made by the school based on the availability of funds. A Federal Perkins Loans carries a fixed interest rate (currently 5 percent) and must be repaid beginning after a nine-month grace period following the date when the student is no longer enrolled on at least a half-time basis.
General Program Requirements
In order to qualify for this benefit program, you must be a student pursuing a postsecondary educational degree or certificate.
Loan Terms
Maximum Loan Amounts: $4,000 annually for undergraduate students (up to $20,000 total as an undergraduate), and $6,000 annually for graduate students (up to $40,000 total, including any Perkins Loans you had as an undergraduate student). Please note that you will not automatically receive the maximum amounts given here. Annual loan amounts depend on when you apply, your level of financial need, and the amount of Perkins Loan funds your school is allocated from the U.S. Department of Education.

Interest Rate: fixed at 5 percent

Maximum Loan Length: 10 years

Frequency of Payments: monthly or quarterly. After you graduate, leave school, or drop below half-time enrollment, you have a nine-month grace period before you begin repayment. Those in the military might have longer.

Prepayment penalties: none

Fees: none

Application Process
For more information, see the Program Contact Information below.
Program Contact Information
For general information about the Federal student aid programs, assistance in completing the FAFSA, and information about FAFSA on the Web, call the Federal Student Aid Information Center (FSAIC) at the following toll-free number:
800-433-3243
Managing Agency
U.S. Department of Education
http://www.ed.gov