Federal Perkins Loan -Federal Perkins Loan
| student loans in the USA |
| regulatory structure |
|---|
| Higher Education Act of 1965 US Department of Education FAFSA Cost of participation Expected Family Contribution |
| Distribution channels |
| Federal Direct Student Loan Program Federal Family Education Loan Program |
| loan products |
| Perkins Stafford PLUS Consolidation Loans Private student loans |
A Federal Perkins Loan or Perkins Loan, a need-based student loan , is a division of the Federal Direct Student Loan Program offered by the U.S. Department of Education to aid American college students who fund their postsecondary education . The name of the program is Carl D. Perkins , a former member of the United States House of Representatives From Kentucky .
Perkins Loans have a fixed interest rate of 5% over a ten-year repayment period. The Perkins Loan Program has a nine-month grace period so borrowers begin repayment in the tenth month after they graduate, drop below part-time status, or leave their college or university. Perkins Loan, subsidized by the government, does not begin to accrue interest until the borrower begins to repay the loan. As of the 2009-2010 academic year, credit limits for undergraduates are $5,500 per year with a maximum lifetime loan of $27,500. For graduate students, the limit is $8,000 per year with a lifetime limit of $60,000 (including undergraduate credits).
Individuals who choose to work in a number of different public service occupations, including early childhood education, elementary and middle school teaching, speech therapy, nursing, law enforcement, librarian, public defense attorney, firefighting, and certain active duty military duties. Depending on the area of employment, further restrictions on the adjustment of employment may apply. For example, forgiveness for teachers may be limited to designated low-income schools or certain teacher gap areas such as math, science, and bilingual education, and forgiveness for nurses requires working at a nonprofit medical facility. For each year spent in full-time teaching, a percentage of the credit is revoked (as long as the credit remains in good standing). This cancellation also applies to Peace Corps volunteers. Cancellation typically occurs on the rating scale: 15% for year 1, 15% for year 2, 20% for year 3, 20% for year 4, and 30% for year 5. These percentages are based on the original loan amount. Thus, after 3 years of service, 50% of his initial debt would be canceled.
On September 30, 2017, the Federal Perkins Loan program failed to be renewed in Congress, effectively ending the loan program.
