Federal Perkins Loan
A Federal Perkins Loan, or Perkins Loan, is a need-based
student loanoffered by the U.S. Department of Education to assist American college students in funding their post-secondary education. The program is named after Carl D. Perkins, a former member of the U.S. House of Representativesfrom Kentucky.
Perkins Loans carry a fixed
interest rateof 5% for the duration of the ten-year repayment period. The Perkins Loan Program has a nine-month grace period, so that borrowers begin repayment in the tenth month upon graduating, falling below half-time status, or withdrawing from their college or university. Because the Perkins Loan is subsidized by the government, interest does not begin to accrue until the borrower begins to repay the loan. The loan limits for undergraduates are $4,000 per year with a lifetime maximum loan of $20,000. For graduate students, the limit is $6,000 per year with a lifetime limit of $40,000 (including undergraduate loans).
Perkins Loans are eligible for
Federal Loan Cancellationfor teachers in designated low-income schools, as well as for teachers in designated teacher shortage areas such as math, science, and bilingual education. A percentage of the loan is cancelled for each year spent teaching full-time.
* [http://www.studentaid.ed.gov/students/publications/student_guide/2004_2005/english/types-fedperkinsloan.htm U.S. Dept. of Education: The Student Guide 2004-2005: Federal Perkins Loans]
* [http://studentaid.ed.gov/PORTALSWebApp/students/english/cancelperk.jsp?tab=repaying U.S. Dept. of Education: Federal Perkins Loan Teacher Cancellation]
* [http://www.whitehouse.gov/omb/expectmore/summary/10001034.2003.html U.S. Office of Management and Budget: Federal Perkins Loans Program Assessment]
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