Federal Perkins Loan

Federal Perkins Loan

The Federal Perkins Loan Program ended September 30, 2017. No new loans can be awarded after that date. Federal Perkins Loans will not be available for the 2018-2019 award year and beyond.

The Federal Perkins Loan Program provided low-interest, subsidized loans to help needy students finance the costs of postsecondary education.  Financial need is determined by the U.S. Department of Education using a standard formula, established by Congress, to evaluate the financial information reported by the student on the Free Application for Federal Student Aid (FAFSA).

Interest Rate information

  • 5% Fixed Rate (interest FREE while attending school at least half-time)
  • 9 month grace period
  • Limited by school’s allocation of funding

Federal Perkins Loan Disclosure Statement

This disclosure statement provides additional information about the loan and compares the terms and benefits of it to other Federal loans.

1. Federal Perkins Loan Program ended September 30, 2017

No additional loans will be available (disbursed) under the Federal Perkins loan after that time, except if an undergraduate student receives a disbursement of a Federal Perkins loan after 6/30/17 and before 10/1/17, the student may receive subsequent disbursements of that Federal Perkins loan.

2. Federal Loan Interest Rate Comparison




Perkins Loan

5.00% Fixed

9 months

Direct Subsidized/Unsubsidized Loan

3.76% Fixed *

6 months

*Interest rate is determined annually and will apply to loans from July 1 through June 30 of the following year. Each loan will have a fixed interest rate for the life of the loan. Additional information about interest rates can be found at StudentAid.gov

3. Federal Perkins Loan Eligibility Available AFTER Federal Direct Loan Eligibility

In order to qualify for the Federal Perkins loan, you must be awarded your full eligibility in Federal Direct Subsidized and Unsubsidized loans. If your eligibility changes, your Federal Perkins loan may be reduced or canceled.

4. Repayment and Forgiveness Options for Federal Direct Loans are NOT Available for Federal Perkins Loans

The repayment and forgiveness options for Federal Direct loans are NOT available for Federal Perkins loans. However, there are some repayment and forgiveness options for the Perkins loans that are not available for the Federal Direct loans.

5. Consolidation of Federal Perkins Loans with Federal Direct Loans is an Option

There are benefits and drawbacks to consolidating Federal Perkins loans with Federal Direct loans. For more information about loan consolidation, visit StudentAid.gov/consolidation.



One Monthly Payment

A consolidation loan combines the borrower’s eligible loans into a single loan. This consolidates payments to ONE monthly payment rather than multiple payments to multiple loan servicers.

More Repayment Options

Consolidation loans offer increased repayment options that may reduce payment by extending the repayment terms, or by recalculating payment due based on actual earnings/income.


It should be noted that extending repayment will add to the total interest to the loan over its lifetime.

Loss of Loan Cancelation Benefits

If you are, or will be a public school teacher, or teach math, science or special education subjects, you may qualify for Perkins loan cancelation. When Perkins loans are consolidated, this benefit is eliminated.

You can find out more about your student loans by accessing the National Student Loan Data System (NSLDS). You can access the site using your FSA User ID and qualifying personal identification information.