As of 2015, the Perkins loan program is being phased out by the Federal government. The Perkins Loan is a low-interest (5%), need-based federal student loan. It is a very limited fund and is not guaranteed from year to year. The amount awarded to any student is based on his/her level of need as determined by the FAFSA. Undergraduate students may be eligible for up to $5,500 each year of undergraduate study, with a cumulative total of $27,500. As a loan, Perkins must be repaid beginning nine months after the student leaves college due to graduation or withdrawal. Interest does not begin to accrue until 9 months after leaving school, and all Perkins Loans allow a 10-year repayment period.
In order to be considered to receive the Perkins Loan, the student must complete their FAFSA. If the student is awarded Perkins, he/she must complete both a Perkins Pre-Loan Information Sheet and the Master Promissory Note before the loan will be able to be disbursed.