Federal Perkins Loan Program - FAQ
- What is a Federal Perkins Loan?
- How do I apply for a Federal Perkins Loan ?
- Who can qualify for a Federal Perkins Loan ?
- What are the eligibility requirements ?
- How much can I borrow ?
- When do I receive my Federal Perkins Loan ?
- When do I begin repayment of my Federal Perkins Loan ?
- Can my Perkins Loan payments be postponed ?
- Can my Perkins Loan be canceled?
- What is exit counseling ?
- What is a grace period ?
- What are the consequences of default ?
- What is the Federal Perkins Loan Rehabilitation Program ?
1. What is a Federal Perkins Loan?
A Federal Perkins Loan is a low-interest rate loan for both undergraduate and graduate students with exceptional financial need. Loans are offered through the Financial Aid Office based upon available funding.
2. How do I apply for a Federal Perkins Loan ?
File a Free Federal Application for Federal Student Aid (FAFSA). (website)
3. Who can qualify for a Federal Perkins Loan ?
Undergraduate and Graduate students who meet the general student eligibility requirements and have not borrowed the maximum amounts allowed.
4. What are the eligibility requirements?
- must be eligible for financial aid as determined by the completion of the Federal Application for Federal Student Aid
- enrolled at least half time in a degree program.
- willing to repay the loan
- not in default on any Title IV loans
- have a good credit history.
Annual loan limits are $5,500 for undergraduate students and $8,000 for graduate students. Aggregate loan limits are $27,500 for undergraduate students and $60,000 for graduate students.
6. When do I receive my Federal Perkins Loan ?
You must sign a promissory note and complete an entrance interview. Your loan will be applied to your student account and refunded accordingly.
7. When do I begin repayment of my Federal Perkins Loan ?
Repayment of a Perkins Loan begins nine months after the date the borrower drops below half-time enrollment or separation from Western Illinois University.
8. Can my Perkins Loan payments be postponed ?
You would have to request a deferment of payments. See deferment options.
9. Can my Perkins Loan be canceled ?
Yes, some Perkins Loans can be canceled. Please refer to the page on Cancellation to see if you qualify.
When a borrower leaves school, the school must conduct an exit interview, during which a repayment schedule is provided to the borrower.
A grace period is the period of time before the borrower must begin or resume repaying a loan.
12. What are the consequences of default?
If a borrower fails to repay the student loan on a timely basis, they will be considered in default and could encounter the following consequences:
- The remaining balance and interest will become due immediately. Your credit rating could be tainted for up to 7 years and will be reported to all credit bureaus.
- Late charges will be assessed.
- Access to institutional records will be restricted.
- You could be declared ineligible for further federal and state financial aid.
- The loan will be placed with an attorney or collection agency. Any fees that are acquired for collection of the loan will be charged to the borrower.
- You could be sued in court to compel you to repay the loan. The borrower will also be charged any attorney fees if judgment is not in the borrowers favor.
- Your wages may be garnished to repay your loan.
- Your income tax refund may be seized to repay part or all of your debt.
13. What is the Federal Perkins Loan Rehabilitation Program ?
Federal Perkins Loan Rehabilitation is a program for defaulted borrowers. Borrowers may only utilize the program one time. A loan is considered in default when a payment is late. A defaulted loan will be considered rehabilitated after the borrower makes 9 consecutive on-time monthly payments, as determined by Western Illinois University.
