Perkins Student Loans

About Perkins Student Loans

perkins student loansPerkins loans are a form of federal financial aid, designed to provide assistance to students who demonstrate a high degree of financial need. They are subsidized student loans with a fixed interest rate, and have all the borrower benefits that come standard with a federal loan. These loans are extremely rare, however – they make up only about 2% of all disbursed federal aid. In order to receive a Perkins loan, a family must submit the FAFSA, and their Expected Family Contribution (EFC) must reflect a strong financial need. Perkins loans currently have a fixed interest rate of 5%, and they are subsidized, so the government pays the interest on Perkins Student Loans while a student borrower is enrolled in school, and for up to 9 months after a student either graduates or drops below half-time basis. Perkins student loans are very desirable, but are only a possibility for students who demonstrate strong financial need.

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Borrowing Limits

Undergraduate students can obtain up to $5,500 per year and up to $27,500 for an entire undergraduate program in the form of Perkins Student Loans. Graduate students, on the other hand, can get up to $8,000 per year and a total of $60,000 for a graduate program.

Applying for Perkins Student Loans

Students who are U.S. citizens can apply for Perkins student loans simply by filing the Free Application for Federal Student Aid (FAFSA). In order to be considered for a Perkins loan, a student must demonstrate exceptional financial need. In keeping with standard federal financial aid requirements, students must have a high school diploma or a GED to apply for and receive Perkins loans. Additionally, students who pass the approved ability-to-benefit (ABT) test are also eligible for Perkins Loans.


Students are required to begin repaying Perkins student loans 9 months after either graduating or withdrawing from school, and the repayment period can last up to 10 years. If possible, a Perkins loan borrower should consider repaying back his or her loan aggressively, as early payments can save a borrower hundreds, even thousands of dollars over the life of the loan. It’s important to determine what repayment plan works best for you as a borrower, and there are a variety of options: you can learn more about repayment plans here.

Benefits of Perkins Student Loans

Perkins student loans help students to pursue their educational goals while minimizing financial constraints and future debt. With low interest rates and an easy repayment process, students can easily manage their studies and then repay their loans in a convenient manner. Students who cannot afford to pay for costly academic programs don’t have to be deprived of acquiring higher education, since Perkins Student Loans help and enable them to pursue their educational goals without being worried about their financial limitations.

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