The Federal Perkins Loan program is a campus-based program, administered directly by the financial aid office at each participating school. Not all schools participate in programs like this - check with a school's financial aid office to find out which programs, if any, they participate in.

How much aid you receive from each of these programs depends on your financial need, on the amount of other aid you receive, and on the availability of funds at your college or career school. Campus-based programs provide a certain amount of funds for each participating school to administer each year. When the money for a program is used up, no more awards can be made from that program for that year. Each school sets its own deadlines for campus-based funds, and those deadlines are usually earlier than the Department of Education's deadline for filing a Free Application for Federal Student Aid (FAFSA).

A Federal Perkins Loan is a low-interest (5 percent) loan for both undergraduate and graduate students with exceptional financial need. Federal Perkins Loans are made through a school's financial aid office. Your school is your lender, and the loan is made with government funds. You must repay this loan to your school.

Your school will either pay you directly (usually by check) or apply your loan to your school charges. You'll receive the loan in at least two payments during the academic year.

How much can I borrow?
You can borrow up to $4,000 for each year of undergraduate study (the total you can borrow as an undergraduate is $20,000). The amount you receive depends on when you apply, your financial need, and the funding level at the school.

Other than interest, is there a charge for this loan?
No, there are no other charges. However, if you skip a payment, if it's late, or if you make less than a full payment, you might have to pay a late charge plus any collection costs.

When do I pay it back?
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 "grace period." If you're attending less than half time, check with your college or career school to find out how long your grace period will be.

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