The Federal Perkins Loan Program is a program established by the government to provide low-interest loans to help students finance their college education.
The need-based loan offered by the U.S. Department of Education is available to students who demonstrate financial need. To be considered for a Federal Perkins Loan, you must file a FASFA and wait to receive the Student Aid Report to see what options are available to you.
Perkins Loans have a fixed interest rate of 5%. The loan is subsidized by the government, so interest will not begin to accrue until the borrower begins repayment. The standard ten-year repayment period begins after a 9-month grace period once a student graduates, withdraws, or attends less than half time.
Perkins Loans are eligible for loan forgiveness for teachers in designated low-income areas, as well as for teachers of subjects in shortage areas such as math and science. Student loan forgiveness is also available to those who volunteer in the Peace Corps.