• Calendar | News | People | A to Z | Home

Federal Perkins Loan   

What Are the Terms of the Loan?  The Federal Perkins Loan is interest-free to you during in-school deferment, and grace periods.  When you enter repayment, the annual interest rate is 5%.

When Do I Begin Repayment?  The Perkins Loan has a nine-month grace period and is a quarterly payment.  Interest beings to accrue nine months after you cease to be enrolled as at least a half-time student (whether you graduate or not) and your first payment is due 3 months later.

What Will My Quarterly Payment Be?  There is a minimum quarterly payment of $120.00 for Federal Perkins loans.  If your loan is $3,750.00 or less, your quarterly payment is $120.00.  If your loan is more than $3,750.00, you can estimate your quarterly payments by multiplying your loan amount by .032.

What If I’m Still In School?  If you enroll at another school on at least a half-time basis, your loan is eligible for deferment.  Our loan servicer, ACS, checks the National Student Loan database at the beginning of each semester and will notify you if they have processed a deferment on your loan account.  If you do not receive notification, or if you receive notice that your loan payment is due, please contact our Student Loan Office or the loan servicer, ACS, for a “Request for Deferment” form.  You will need to take the form to the Registrar’s Office, at the school you are attending, to certify your enrollment.  The form must then be forwarded to our loan servicer, ACS.

Are There Any Special Provisions Regarding Cancellation of the Perkins Loan?  Yes!  Depending upon your career plans; you may qualify for full or partial cancellation of your Perkins Loan.  Your loan may be cancelled for certain types of elementary or secondary school teaching, military service in a hostile area, or service in the Peace Corps.  It may also be cancelled if you are a law enforcement or corrections officer, a qualified professional providing early intervention services, a full-time nurse or medical technician, or a full-time employee providing services to high-risk children from low-income communities.  Contact the Student Loan Office for additional information.

What If I Can’t Afford to Repay My Loan?  If you anticipate that you will be unable to afford your Perkins Loan payment, do not ignore it!  You may qualify for an economic hardship deferment or forbearance (i.e., you may be allowed to temporarily postpone your payments without damaging your credit rating).  Federal loans are eligible for consolidation.  Contact your Stafford loan lender to ask about consolidation and refinancing options (which can lower your total student loan monthly payment).  If your loans enter default, the consequences are very serious; among other things, your credit rating will be damaged and the federal government can take your income tax refunds.  We want to help you avoid default (your default can adversely affect St. Olaf and future Perkins Loan borrowers as well), so please contact the Student Loan Office for assistance if you are having trouble making your payments.