Federal Perkins Loan
If you are a full-time undergraduate student with exceptional financial need (the lowest EFC), you may qualify for the Federal Perkins Loan. Be aware that funds are limited. To be among the first recipients, you are strongly encouraged to submit your Free Application for Federal Student Aid (FAFSA) by the priority deadlines (new students, March 1 or for returning students, April 15) before funds are depleted for the aid year.
No insurance premiums or origination fees are charged. Interest does not accrue while you are an enrolled student. A nine-month grace period begins after you graduate, leave the University of Minnesota, Twin Cities, or drop to less than half-time student status. At the end of the grace period you begin repayment to Student Account Assistance (SAA). Your payments include a five percent annual interest rate and are calculated for full repayment within 10 years (120 months).
Terms
A Federal Perkins Loan is a low-interest, need-based loan. The interest rate is fixed at 5%. This campus-based program is administered by the University of Minnesota. We restrict this loan program due to limited funding. The annual limit is $5,500, however the typical award is $2,000.
During your first two years of undergraduate study in a degree program, you may borrow up to $11,000 in Perkins loans; after successfully completing two years, your aggregate limit is $27,500 for undergraduate study leading to a bachelor's degree.
Disbursement
When you accept a Perkins loan award, you will be sent an email directing you to a website to complete the Perkins promissory note and loan disclosure. Your loan cannot be disbursed to you until you have signed the promissory note, a legal and binding contract of your promise to repay the Perkins loan, according to the loan amount, interest, repayment terms, and exit counseling requirement. If you sign the promissory note electronically, the disclosure or reference information is included in one process. If you choose to do the paper forms, the promissory note and disclosure are two separate forms.
