Federal Perkins Loan
In 2015 the U.S. Congress ended the Federal Perkins Loan program. Students who received a Perkins Loan during or prior to the 2014/2015 academic year may be eligible to continue borrowing through the completion of their course of study.
Funds for the Federal Perkins Loan are provided by repayments from previous borrowers.
Federal regulations require that the Perkins Loan be awarded to students with exceptional financial need and that the maximum annual undergraduate loan not exceed $5,500. The maximum amount offered will also be limited by the availability of funds in the Boston University Perkins Loan program.
All applicants must submit the Free Application for Federal Student Aid (FAFSA) for determination of Federal Perkins Loan eligibility.
|Interest Rate||Maximum Annual Loan||Interest Charged While Enrolled||Repayment of Principal|
|5%||$5,500||none||9 months after no longer enrolled at least half-time|
Specific details about repayment are outlined in the promissory note, which is sent to students who are awarded and accept a Perkins Loan.
A completed and signed promissory note must be returned before a Perkins Loan can be credited to a student’s account. Loans will be canceled if promissory notes are not returned promptly.
The amount of Perkins Loan awarded to a student will usually decrease in future years as his or her eligibility for the Federal Direct Stafford Loan increases.
The maximum cumulative Perkins Loan amount for undergraduates is $20,000 if the student has completed 2 years of undergraduate work and is pursuing a bachelor’s degree; otherwise, total borrowing cannot exceed $8,000.