Federal Perkins Loan
If you are a full-time 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 1) 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 Financial Collections (SFC). Your payments include a 5 percent annual
interest rate and are calculated for full repayment within 10 years (120 months).
Undergraduates: You may be offered a Federal Perkins Loan of up to $4,000
annually. During your first two years of undergraduate study in a degree program,
you may borrow up to $8,000 in Perkins loans; after successfully completing
two years, your aggregate limit is $20,000 for undergraduate study leading to
a bachelor's degree.
Graduate or professional students: You may be offered up to $6,000 in Perkins
loans annually, with an aggregate limit of $40,000 in Perkins loans (includes
any amount borrowed as an undergraduate).
Disbursement: When you accept a Perkins loan award, you will be sent
an e-mail directing you to a Web site 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 interview requirement. If you sign the promissory
note electronically, the disclosure or reference information is included in
one process. If you chose to do the paper forms, the promissory note and disclosure
are two separate forms.
Please go to the links in the "Read about" section on the upper
left for more about Perkins loans.
