Types of Financial Aid - Federal
The federal Perkins Loan is a need-based loan awarded to undergraduate and graduate students with exceptional financial need. Congress ended this loan program effective September 30, 2015. No new loans were made for any students after September 30, 2015.
Terms of the Perkins Loan for previous borrowers:
- No processing or origination fees.
- Fixed interest rate of 5%, which the federal government pays while you are enrolled at least half-time (6 credits) and during the grace period. Interest begins to accrue after the 9 month grace period.
- You must complete repayment/exit counseling once you are no longer enrolled at least half-time (6 credits).
- Repayment begins 9 months after you enroll less than half-time (6 credits), withdraw, or graduate.
- Payments are made to Heartland Computer Systems/ECSI.
- Borrowers have up to 10 years to repay the loan; under certain conditions there are loan cancellation benefits.
Questions about your Perkins Loan, including deferment, forbearance, or cancellation may be directed to the Minnesota State Colleges & Universities Student Loan Service Center.
Return to the Loans Overview Page