Perkins Loan

AAA

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.

INVESTOPEDIA EXPLAINS '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. Free Application For Federal Student ...

    The form that must be completed in order to qualify for any type ...
  2. Education Loan

    Money borrowed to finance education or school related expenses. ...
  3. PLUS Loan

    A low-cost student loan offered to parents of students currently ...
  4. 529 Plan

    A plan that allows for the prepayment of qualified higher education ...
  5. Interest Rate

    The amount charged, expressed as a percentage of principal, by ...
  6. Qualified Higher Education Expense

    Expenses such as tuition and tuition related expenses that an ...
Related Articles
  1. Pay For A College Education With Retirement ...
    Budgeting

    Pay For A College Education With Retirement ...

  2. Saving Money Or Paying Off Debt?
    Credit & Loans

    Saving Money Or Paying Off Debt?

  3. Perkins Loan Vs. Stafford Loan
    Credit & Loans

    Perkins Loan Vs. Stafford Loan

  4. Direct Stafford Loans
    Credit & Loans

    Direct Stafford Loans

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center