Federal Perkins Loans are low-interest loans for undergraduate and graduate students who complete a FAFSA
and demonstrate exceptional financial need.
Under section 461(b)(1) of the Higher Education Act of 1965, as amended (the
HEA), the authority for schools to make a Federal Perkins Loan ended on
September 30, 2014, with an automatic one-year extension pursuant to section
422(a) of the General Education Provisions Act (GEPA). Thus, absent
Congressional action, schools may not make Federal Perkins Loans to
new borrowers after September 30, 2015.
Must be fully admitted as a degree-seeking student in an undergraduate or graduate program at ISU.
Must be enrolled at least half-time when the loan is expected to be disbursed.
Borrowers must complete the Master Promissory Note (MPN), as well as
Entrance Counseling, in person with the Office of the Controller. Entrance
Counseling provides helpful borrower information on important topics such as entering repayment, debt management, default resolution,
and the mechanics of paying back your loan. Please note that the MPN must be signed each year.
Interest is assessed at 5% APR fixed once the student drops below half-time enrollment or graduates. Interest will not
collect while the student is enrolled in 6 or more credit hours.
Repayment begins after a 9-month grace period.
The award amount is usually $1,500 per student.
Loan funds are applied to student accounts approximately ten days before the start of the semester.
If the borrower applies for a full academic year loan, half of the amount applied for is disbursed at the start of the
fall semester and the other half at the start of the spring semester.
Funds will first cover any charges on the student's account.
Any excess funds are refunded to the student via ACH direct deposit or sent to student's permanent address.
To find out more about repayment options before receiving a Perkins Loan, borrowers may contact the Office of the Controller at Indiana State University.