Repayment of Federal Perkins Loan(s)
When you graduate from college, withdraw, or are no longer enrolled at least half-time, you have a grace period — a period of time before you must begin making payments on your Federal Perkins Loan(s). The grace period for Federal Perkins Loans is nine months.
During your grace period, your college will send you a Schedule of Repayment/Truth in Lending Statement. This statement itemizes how much you have borrowed, the amount of interest that will accrue over the repayment period, the amount to be paid back in total and the date you must begin making payments.
Perkins Loans are distinct from other student loans you may have received (such as Federal PLUS or Stafford loans). Perkins Loan funds are borrowed directly from your college and are repaid to the college.
Normally you will have 10 years to repay your Perkins Loan(s) and installment payments are due quarterly unless you request a monthly payment schedule.
It is important to keep your college advised of any address, telephone or name changes so that you receive your statements in time and can make your payments on time. Making payments on time will avoid additional interest and past due penalty charges being added to the loan amount.
What if You Can't Make a Payment?
If you are unable to make a payment you may be eligible for a deferment or forbearance of loan payments for a period of time. Contact your college to discuss these options.
You may qualify to have some or all of your Perkins Loan cancelled if you work in a particular area of service. Your college has information about this option.
If you default (fail to repay the loan as promised and do not make other arrangements) on your Perkins Loans, your default will be referred to collections and reported to credit bureau organizations. You will lose eligibility for any future federal financial aid -- not only Perkins Loans but federal grants and other federal loans.
Remember, while repaying your student loans can help you establish a good credit rating, default has many negative consequences.
Contact your college if you have any questions or concerns regarding repayment of your Perkins Loan(s).
Our
Loan Repayment Guide will help you understand what you need to know about the benefits of a good repayment record and the penalties if you do not pay off your loan in accordance with its terms.