Federal Perkins Loan program

What is a Federal Perkins Loan?

The Federal Perkins Loan is fixed five percent (5%) interest rate loan for students with exceptional financial need. LMU acts as the lender for this loan and repayment is made to LMU. Undergraduate students may borrow up to $4,000 a year with a total maximum of $20,000 borrowed during your undergraduate years. Each university determines the maximum Federal Perkins Loan that can be offered based on its level of funding. LMU offers a maximum Federal Perkins Loan of up to $2,000 to those students who qualify based on available funding and university policies.

What are the Terms and Conditions of this loan?

· Students can be offered this loan for up to eight semesters. Eligibility for this loan in future years will be based on available funding.
· Must be a U.S. Citizen or eligible non-citizen.
· Must be enrolled full-time each semester to receive this loan.
· Must maintain satisfactory academic progress to receive loans in future years.
· The Federal Perkins Loan is not available for summer enrollment.

Do I apply for the Federal Perkins Loan?

No separate application is required to be considered for the Federal Perkins Loan. Students are considered for the Federal Perkins Loan when they complete the Free Application for Federal Student Aid (FAFSA) and meet General Eligibility requirements for financial aid. Eligible students must have exceptional financial need. The Financial Aid Office will award Federal Perkins loans to eligible students based on an annual evaluation of available funds.

If you decide to accept the Federal Perkins Loan you must:

· Sign and submit a Federal Perkins Master Promissory Note. The promissory note is signed the first year you receive the loan and is in effect for future Federal Perkins Loans you borrow at LMU as long as you remain continuously enrolled at least half-time. A promissory note is a legal contract which states you, the borrower, will repay the loan.
· Complete online Federal Perkins Loan Entrance Counseling.
· NOTE: Information on completing the Federal Perkins Master Promissory Note and Online Counseling for entering freshmen or transfer students for 2011-2012 will be posted in tasks on your MyAid account.

When will I receive my Federal Perkins Loan funds?

Once you complete the Federal Perkins Loan Master Promissory Note and the online Federal Perkins Loan Counseling, loan funds will be disbursed to your LMU Student Account, no earlier than 10 days prior to the start date of the semester. Loans are disbursed half (50%) in the fall semester and half (50%) in the spring semester.

When must this loan be repaid?

Payments on the Federal Perkins Loan begin nine months after you graduate or leave school. How much you pay back each month will depend on how much you borrowed and how long you have to repay your loan. Repayment is handled by LMU’s Office of Student Financial Services, Loan Office.

Perkins Loan Sample Repayment Chart

The following chart is based on a 5% interest rate.