The Federal Perkins Loan is a fixed 5% interest rate loan for undergraduate and graduate students who demonstrate financial need. RU is the lender. The loan is made with government funds with a share contributed by RU. Depending on when you apply, your level of need, and the funding RU receives, an eligible student may borrow:
No origination fee is deducted from the face value of the Perkins award amount. Interest doest not accrue while student is enrolled maintains at least half-time.
- up to $3,000 for each year of undergraduate study (the total amount you can borrow as an undergraduate is $20,000 if you have completed two years of undergraduate work; otherwise, the total you can borrow is $8,000).
Repayment of a Federal Perkins Loan begins nine months after a student graduates, leaves school, or drops below half-time status. This nine-month period is known as the grace period. At the end of the grace period, a borrower must begin repayment and is allowed up to 10 years to repay the Federal Perkins Loan in full. The monthly repayment amount is based on the size of the borrower’s debt and the length of the repayment period.
Under certain circumstances a borrower can receive a deferment or forbearance on the Federal Perkins Loan. The loan can also qualify for cancellation under certain unusual conditions.