Federal Perkins LoanPage address: https://www.mnsu.edu/campushub/loans/perkins/
The Federal Perkins Loan program provides students with assistance in meeting the cost of attendance at eligible public and private post-secondary institutions. It is funded by the Federal Government and is a low-interest, long-term educational loan.
- How is the Federal Perkins Loan awarded?
- What is the maximum amount allowed?
- How many credits are required?
- What is the interest rate?
- Is there a "grace period" upon graduation and repayment?
- What is the minimum monthly payment?
- Can the Perkins Loan be cancelled?
- What is the application process to receive a Perkins Loan?
How is the Federal Perkins Loan awarded?
The Federal Perkins Loan is awarded on a first-come, first-served basis, depending on your financial need. The average Minnesota State University, Mankato Federal Perkins Loan award ranges from $100-$2,400 per year.
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What is the maximum amount allowed?
The maximum aggregate amount an eligible undergraduate student who has not completed two (2) academic years of coursework is $8,000. The maximum aggregate amount an eligible undergraduate student who has completed at least two (2) years of coursework and is pursuing a bachelor’s degree is $20,000. The annual maximum is subject to change, pending available funds and financial need.
How many credits are required?
The Federal Perkins Loan on the Notice of Eligibility Letter is based on 12 credits of attendance per term. The Federal Perkins Loan will be pro-rated if the student is enrolled for less than 12 credits and must be enrolled for at least 6 credits per term.
Students who drop below half-time, graduate or withdraw from Minnesota State University, Mankato are required to attend an exit interview with Student Financial Services to establish repayment provisions.
What is the interest rate?
The interest rate for the Federal Perkins Loan is stated in the borrowers promissory note. The annual interest rate for the Federal Perkins Loan is currently 5% a year. Interest does not accure while you are enrolled at least half-time.
Is there a "grace period" upon graduation and repayment?
The Federal Perkins Loan has a nine month grace period. The "grace period" is defined as the period of time before the borrower must begin or resume repaying a loan.
What is the minimum monthly payment?
The monthly repayment on the Federal Perkins Loan will be based on the total amount borrowed. The minimum monthly repayment is $40.00. The maximum repayment period is 10 years, but may be extended for an additional 10 years if Minnesota State Colleges and Universities' Loan Servicing Center determines that you are or will be a "low-income individual" as defined in the federal regulations published by the Department of Education.
Can the Perkins Loan be cancelled?
The Federal Perkins Loan offers cancellation and deferment provisions outlined in detail in the promissory note. You will receive more information on this subject in the exit interview with Student Financial Services (389-1866).
What is the application process to receive a Perkins Loan?
To apply for a Federal Perkins Loan you must first complete the Free Application for Federal Student Aid (FAFSA) annually. Eligibility for the Federal Perkins Loan is based upon your Expected Family Contribution (EFC) determined from the FAFSA. You may secure a copy of the FAFSA from Student Financial Servcies or high school guidance counselor. Be sure to apply early as MSU's priority date is March 15th.
- Complete Student Response Form.
- Complete Perkins Entrance Loan Counseling.
- Complete Federal Perkins Promissory Note from Student Financial Services.
*only applies to students who have been awarded a Federal Perkins Loan on their official award letter from Student Financial Services.