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. Budgeting

    Pay For A College Education With Retirement Funds

    These savings vehicles may be better than college saving funds for some families.
  2. Budgeting

    Studying In The United States: New York City

    Advice for international students on how to budget if you want to go to college in New York City.
  3. Budgeting

    Studying in the United States: Boston

    With more colleges than most cities, Boston is a mecca for students from around the world. Here's what to budget to study there.
  4. Budgeting

    Studying in the United States: Chicago

    Would you enjoy going to college in Chicago? Here's what it's like to study and live in the Windy City.
  5. Credit & Loans

    Is An MIT Education Worth the Tuition?

    An education from MIT may look pricey on the surface, but the earning potential of graduates means it's usually a very solid investment.
  6. Investing Basics

    Top Financial Planning Colleges: A Primer

    An overview of the top colleges for financial planners and advisors.
  7. Personal Finance

    First Resume? Tips For High School Students

    Here's how to shape your school projects, babysitting and any other jobs you've had into a resume that will get you hired.
  8. Savings

    What Will It Cost To Study Abroad in Florence?

    The career payoffs for study abroad can be huge, but can you afford it? Here's a rundown of what you'll need to budget for a semester in Florence.
  9. Budgeting

    Best Checking Accounts For College Students

    Student checking accounts avoid the high fees and minimum balances of some other accounts. Here's how to evaluate offers and find one with the best terms.
  10. Credit & Loans

    What's the Annual Percentage Rate (APR)?

    The annual percentage rate, or APR, is the cost per year of borrowing. By law, all financial institutions must show customers the APR of a loan or credit card, which clearly indicates the real ...

You May Also Like

Hot Definitions
  1. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  2. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  3. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  4. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  5. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  6. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
Trading Center