Federal Perkins Loan
The Federal Perkins loan (PERK) Program is designed
to provide low-interest loans to both Undergraduate and
Graduate Students. The Office of Education formerly Department
of Education (OE) governs the loan. For regulatory information,
visit OE's website at www.ifap.ed.gov.
What's on this page?
Repayment of the Loan
The total loan amount, plus the interest accrued on
the amount, is repayable in monthly installments known
as the repayment period. The maximum repayment period
for the PERK Loan is (10) ten years.
The grace period of time between when the PERK borrower leave school
or drops below halftime student status and the
time they begin repayment. During this period,
the PERK borrower is not required to make payments
and interest does not accrue. The grace period
of the PERK Loan is (9) nine months.
Interest is the cost paid to borrow the money.
The annual interest rate of the PERK Loan is (5%)
It is a fixed, simple interest rate.
Interest begin after the grace period. No
interest accrues while the PERK borrower is in
Under the terms of the promissory note, a
school may assess a penalty or late charge
should any PERK borrower fail to make payment
on time, or fail to file the necessary deferment
or cancellation form prior to the scheduled
due date. The school may charge up t (20%)
twenty percent of the past due payment amount
for the late charge.
The minimum payment of the PERK Loan is $40.00
Per Federal Regulations, default is when any
PERK borrower fails to make a scheduled payment
or to file a cancellation or deferment form on
time. Defaulters may be subject to the following:
- The entire unpaid principal balance
plus accrued interest and any applicable
or late charges may become immediately
due and payable;
- The loan may be referred to a collection
agency or attorney for legal proceedings;
- The University may withhold institutional
services (transcripts, degrees, etc):
- The University may consult with IRS
concerning address updates.
In case of death, the PERK loan may be cancelled
on the basis of a death certificate or other
evidence that is conclusive under state law.
Permanent and Total Disability Cancellation
If the PERK borrower becomes permanently
and totally disabled after receiving the
PERK loan, the loan may be cancelled based
on medical documentation supplied by the
PERK borrower's physician.
(For Perkins Loans made on or after July
Up to (100%) one hundred percent cancellation
for full-time service as:
- A teacher in a designated elementary
or secondary school serving students from
- A special education teacher (including
teaching children with disabilities) in
a public or other nonprofit elementary
or secondary school.
- A qualified professional provider of
early intervention services for the disabled.
- A teacher of math, science, foreign languages,
bilingual education or other fields designated
as teacher shortage areas.
- An employee of a public or nonprofit
child or family service agency providing
services to high-risk children and their
families in low-income communities.
- A nurse or medical technician providing
health care service.
- A law enforcement or correction officer.
- A member of the United States Armed Forces
(limited to those serving in a hostile
areas and receiving special pay under section
310 or Title 37, United States Code).
- A member of the Peace Corps or Vista
(For Perkins Loans made on or after July 1,
Repayment of both principal and interest
on the PERK borrower's loan may be postponed
a properly completed "Request for deferment" form
by the specified due date. They must be submitted
annually or on a semester basis depending
on the program. The University has the right
to deny a request for deferment if it does
not comply with the information requirements
the deferment is submitted late.
Only Federal Perkins Loan borrowers receiving
deferment are entitled to an additional (6) six-month
grace period following a deferment. Borrowers
of PERK loans must notify the University or its
billing agent, ACS, when they have completed
or terminated a deferrable activity.
Any PERK borrower is eligible for a student
deferment if they are enrolled as a full
or halftime student
at an accredited institution of higher
learning in the United States or at a comparable
outside the United States. A "halftime
a student who is carrying at least one-half
the normal full-time academic course load
as determined by the institution where enrolled.
Any PERK borrower pursuing a course of study
in an approved (Office of Education) graduate
fellowship program excluding a medical internship
or residency program are eligible for a fellowship
Any PERK borrower who is seeking and is unable
to find full-time employment is eligible for
unemployment deferment. The maximum unemployment
deferment period is (3) three years.
Any PERK borrower suffering an economic hardship
is eligible for an economic deferment. The maximum
deferment period is (3) three years.
Once a loan is disbursed, it is reported to
the (3) three major credit bureaus, Equifax,
Experian and TransUnion at the end of the month.
Thereafter, the loan should be considered a part
of student's debt-to-income ratio.
Consolidation is a program that allows a financial
agency to purchase different types and amount
of federal loans in order to simplify repayment.
The Federal Perkins Loan is eligible for consolidation
under the federal consolidation guidelines.
Student Loan Ombudsman
If any borrowers disputes the terms of a Federal
Perkins Loan in writing and the holder of the
loan is unable to resolve the dispute, a Federal
Perkins Loan borrower may seek the assistance
of the Office of Education's Student Loan Ombudsman.
The Ombudsman will review and attempt to informally
resolve the dispute.