Perkins Loan

DEFINITION of 'Perkins Loan'

A loan program that provides low-interest student loans to undergraduate and graduate students who demonstrate exceptional financial need. The Perkins Loan is made through the student's school's financial aid office. The school is the lender, and therefore the loan is repaid to the school. The loan is paid either directly to the student (usually by a check) or the loan amount is applied towards school charges and expenses. Repayment on the loan begins nine months after the student graduates, leaves school or drops below half-time status.

BREAKING DOWN 'Perkins Loan'

The Federal Perkins Loan Program has borrowing limits depending on when the student applies, the student's financial need and the school's funding level. Students can borrow up to $5,500 for each year of undergraduate study - up to $27,500 - and $8,000 for each year of graduate or professional study - up to $60,000, including any undergraduate Federal Perkins Loans.

RELATED TERMS
  1. Education Loan

    Money borrowed to finance education or school related expenses. ...
  2. Student Loan Forgiveness

    Under certain circumstances, federally backed student loans – ...
  3. PLUS Loan

    A low-cost student loan offered to parents of students currently ...
  4. Stafford Loan

    A type of federal, fixed-rate student loan that was available ...
  5. Federal Direct Loan Program

    A program that provides low-interest loans to postsecondary students ...
  6. Federal Supplemental Educational ...

    A program that provides funds for undergraduate students who ...
Related Articles
  1. Markets

    A Beginner's Guide to Getting Student Loans

    Follow these 5 steps and you'll be well on your way to knowing which loans to go after – and which college really offers you the best deal.
  2. Personal Finance

    College Loans: Private vs. Federal

    Not all student loans are the same. Know what you're getting into before signing on the dotted line.
  3. Investing

    10 Ways Student Debt Can Destroy Your Life

    If you're getting a student loan, think critically about how you will manage your loan. Student debt could have a profound negative impact on your life.
  4. Markets

    Student Loan Asset-Backed Securities: Safe or Subprime?

    Similar to the mortgage-backed securities that caused the 2008 recession, student loan asset-backed securities could lead to the next financial crisis.
  5. Personal Finance

    Technology Can Help With Student Loans (AMTD)

    Paying student loans can be a difficult time for young professionals and even in older age. But many new marketplace lending services such as SoFI, CommonBond and Earnest have leveraged the surge ...
  6. Personal Finance

    Don’t Fail Student Loan Debt 101

    Don't be a statistic! According to a recent study, six in 10 Millennials don’t know what they owe or what to do with student loans after they graduate.
  7. Personal Finance

    Top Student Loan Providers

    Many banks and institutions offer student loans, but some offer better deals than others. Read this list of top student loan providers before you borrow.
  8. Managing Wealth

    College Students are Failing Financial Literacy

    Financial trends among college students are a cause for concern, prompting a renewed emphasis on financial literacy.
  9. Managing Wealth

    Student Loan Refinancing: The Pros and Cons

    To refinance your student loan or not? Here are the top pros and cons to consider.
  10. Personal Finance

    Use These Tips to Crush Student Loan Debt Fast

    Savvy graduates are paying off their college debt in record time. Here are the strategies that can get you out from under faster.
RELATED FAQS
  1. Why are private student loans generally more expensive than federal loans?

    Make the right decision between a federal student loan and a private student loan when looking for financial aid for your ... Read Answer >>
  2. Student loans, federal and private: what's the difference?

    Learn about the differences between federal and private student loans, and discover the types of federal funding available ... Read Answer >>
  3. Is it legal to invest my student loan money?

    Take a risk investing student loans and encounter a legal and moral gray area as well as possible financial challenges along ... Read Answer >>
  4. What are the pros and cons of consolidating my student loans?

    Read about the possible advantages and disadvantages of consolidating your student loan debts, and find out how to determine ... Read Answer >>
  5. What is the difference between certified and non-certified private student loans?

    Learn the main differences between certified and non-certified private student loans, and see why non-certified student loans ... Read Answer >>
  6. Are Sallie Mae loans considered federal loans?

    Identify the differences between federal and private student loans, explore the qualities of each type of loan, and find ... Read Answer >>
Trading Center