Perkins Loan

If you would like to go to college but your family has no resources to help you, the federal Perkins loan program may be your first step towards a college education.

Let’s face it, college tuition costs keep rising. Most families with college age children worry about how to afford the costs of a college education. If your family already has problems meeting day-to-day living expenses, you may believe that there is no way for you to go to college. But, that’s just not true. The federal Perkins loan is designed especially for people who have extreme need for financial assistance.

What is extreme need? In general, families with income of $25,000 or less may qualify for a federal Perkins loan. However, even if your family’s income is greater than $25,000, you should explore this loan possibility. Here’s why.





  1. Remember that your family’s income may be adjusted based on your specific circumstances, so it always makes sense to apply and allow the loan review process to determine your eligibility.
  2. The Perkins loan is made by your college rather than a financial institution. The college reviews its student body and identifies its own group of most needy students who should be considered for the Perkins loan.

The federal Perkins loan also has many special advantages which make it a very attractive option for some students. For example:

  • There are no insurance or loan origination fees to pay.
  • The nine month grace period before repayment is longer than the six month grace period that other federal loans require.
  • There are many ways to become eligible for cancellation of some or the entire loan, such as becoming a nurse or law enforcement officer.
  • The interest rate is only 5%.
  • There is a 10 year repayment period.

Finally, the federal Perkins loan is lent to the student, not the parent, so there is no ongoing burden of responsibility for a family that is already struggling financially. The student, equipped with a college education that the Perkins loan supported, is in a much better position to repay the loan over the ten year payback period.

Would you like to learn more about the federal Perkins loan program? Just click on any of the topics on our home page and learn how to achieve your dream of a college education.