Federal Perkins Loan
What is it?
A Federal Perkins Loan student loan, or commonly called a "Perkins Loan", is a student loan offered by the U.S. Department of Education to help American college students in funding their post-secondary education. This program is a need based student loan, so a student applying for a Federal Perkins Loan must show a compelling need. The Federal Perkins student loan has a fixed interest rate of 5% for the full duration of the ten year repayment period. This loan does not require payments until nine months after graduation. This nine months is call a grace period and is intended to give the new graduate some time to find a job before requiring them to make payments. Interest does not begin to accrue on a Perkins Loan until the borrower begins to repay the loan. This is because a Federal Perkins Loan is subsidized by the government. A Federal Perkins Loan are eligible for Federal Loan Cancellation, this allows a percentage of the loan being cancelled for each year spent teaching full-time in a in designated low-income school.
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