Federal Perkins Loan

Some of this information is from the "Student Guide" published by the U.S. Department of Education.

Federal Perkins Loans

What is a Federal Perkins Loan?

A Federal Perkins Loan is a low-interest (5 percent) loan for both undergraduate and graduate students with exceptional financial need. This need-based loan is funded by the federal government but administered by Radford University.

How do I qualify?

To determine if you're eligible financially, the U.S. Department of Education uses a standard formula, established by Congress, to evaluate the information you report when you apply (by filing the FAFSA). (Refer to  "Need"  and  news update.) The formula produces an Expected Family Contribution (EFC) number. Your Student Aid Report (SAR) contains this number and will tell you if you're eligible. Funds are limited in this program. Students who meet the February 1st filing deadline will be given priority for available funds.

Enrollment and Satisfactory Academic Progress

All financial aid is awarded subject to acceptance or readmission to the University as a regular degree seeking student. A student is eligible for financial assistance if she/he maintains satisfactory academic progress. This progress is reviewed at the end of each spring and/or summer term for the succeeding academic year. Satisfactory progress for financial aid purposes requires that the student maintain a minimum gpa and make progress toward their degree.
 

The minimum Satisfactory Academic Progress standards required to receive aid is available from the Financial Aid Web Site. A student who wishes to appeal the denial of financial aid must first have his/her case reviewed by their Financial Aid Counselor. If the student is not satisfied with the Director's decision, a further appeal can be made to the Director of Financial Aid. The appeal form is available in the Financial Aid Office.

How much can I borrow?

Depending on when you apply (priority filing date is  February 1), your level of need, and the funding level of the school, you can borrow up to

• $5,500 for each year of undergraduate study. The total amount you can borrow as an undergraduate is $27,500
• $8000 for each year of graduate or professional study. The total amount you can borrow as a graduate/professional student is $60,000. (This includes any Federal Perkins Loans you borrowed as an undergraduate.)
• Amounts actually received depends on financial need, amount of other aid and availability of funds at school

Is there a charge for this loan?

A Perkins Loan borrower is not charged any fees. However, if you skip a payment, make a payment late, or make less than a full payment, you may have to pay a late charge plus any collection costs. Late charges will continue until your payments are current.

How will I be paid?

If you are awarded Federal Perkins Loan, it will be listed in your award package. The total amount of your financial aid as shown in your award package will be paid in installments. Generally, one-half of each award may be disbursed to you upon completion of the verification/review of your file and acceptance of your online award.  To complete the verification/review process, send all requested information to the Financial Aid Office as quickly as possible. You can check the status of your financial aid application by using the Student Information System (MY RU). After your Perkins Loan award has been verified, you will be sent a promissory note and rights and responsibility form to read, complete, sign and return to the Financial Aid Office at Radford University. You will also need to do a Perkins Entrance Interview.  You can do your Perkins Loan Entrance Interview on this website.  Upon receipt of the signed promissory note, rights form and completion of the Perkins Loan Entrance Interview, the Perkins Loan funds will be credited to your student account. Any credit balance remaining on your student account after all University charges have been paid, will be mailed to you after the beginning of the semester.

Will I have an opportunity to cancel my loan after I apply?

Yes. Your school must notify you in writing whenever it credits your account with your Perkins Loan funds. This notification will be sent to you no earlier than 30 days before, and no later than 30 days after the school credits your account. You may cancel all or a portion of your loan by informing your school that you wish to do so within 14 days after the date that your school sends you this notice, or by the first day of the payment period, whichever is later. Your school can tell you the first day of your payment period. If you receive Perkins Loan funds directly by check, you may refuse the funds by not endorsing the check.

When do I pay back this loan?

If you're attending school at least half time, you have nine months after you graduate, leave school, or drop below half-time status before you must begin repayment. This is called a grace period. If you're attending less than half time, check with your financial aid administrator to determine your grace period. At the end of your grace period, you must begin repaying your loan. You may be allowed up to 10 years to repay.

How much will I have to repay each month?

Your monthly payment amount will depend on the size of your debt and the length of your repayment period.

The repayment chart shows typical monthly payments and total interest charges for three different 5-percent loans over a 10-year period. For an example of typical Perkins Loan repayment schedules see chart on page 40 on the 2009-10 Guide to Federal Student Aid. http://studentaid.ed.gov/students/publications/student_guide/index.html

Can I postpone repayment of my Federal Perkins Loan?

Yes. Under certain circumstances, you can receive a deferment or forbearance on your loan. During a deferment, you are allowed to temporarily postpone payments on your loan, and no interest accrues. You may receive a deferment under certain conditions, such as unemployment. See the Loan Deferment Summary (chart on page 42) for the list of deferments available if your Perkins Loan was disbursed on or after July 1, 1993. If you have a loan that was disbursed before July 1, 1993, check your promissory note for the deferments that apply to that loan.

Deferments are not automatic. You must apply for one through your school by using a deferment request form your school can give you. You must file your deferment request on time or you'll pay a late charge. For more details on deferments, contact the student accounts office or your financial aid office.

If you are temporarily unable to meet your repayment schedule but are not eligible for a deferment, you can receive forbearance for a limited and specific period. During forbearance, your payments are postponed or reduced. Interest continues to accrue; you are responsible for it.

Forbearance isn't automatic either. You may be granted forbearance in up to 12-month intervals for up to three years. You must apply in writing for forbearance through the school that made your loan or the agency the school employs to service your loan. You'll have to provide documentation to support your request for forbearance. You must continue making scheduled payments until you are notified that deferment or forbearance has been granted.

Can my Federal Perkins Loan be canceled?

Yes. If the borrower dies or becomes totally and permanently disabled, the loan can be canceled. A loan can also qualify for cancellation under certain other conditions--as long as the borrower is not in default. See the Discharge/Cancellation Summary  (chart page 45) for the list of cancellation conditions. For more information, contact your financial aid office.

If you serve as an enlisted person in certain specialties of the U.S. Army, the Army Reserves, the Army National Guard, or the Air National Guard, the U.S. Department of Defense may, as an enlistment incentive, repay a portion of your Federal Perkins Loan. Note that this is not a cancellation. If you think you qualify, contact your recruiting officer.