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Federal Perkins Loan
Federal Perkins Loans are low-interest loans for undergraduate student who complete a FAFSA and demonstrate exceptional financial need. This program has expired as of September 30, 2017.
If you were awarded a Perkins Loan for 2017 - 2018, and the Fall 2017 portion disbursed prior to October 1 you will still receive your Spring 2018 disbursement.
We do not anticipate making any new Perkins Loans for the 2017 - 2018 academic year.
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 no longer make Federal Perkins Loans to new borrowers or graduate students.
- Must be fully admitted as a degree-seeking student in an undergraduate program at ISU.
- Must be enrolled at least half-time when the loan is expected to be disbursed.
- Must maintain Satisfactory Academic Progress standards.
- Must be a U.S. Citizen or eligible non-citizen.
- Must not be in default on an educational loan or owe an overpayment on a federal education grant, or other federal debt, or has made satisfactory arrangements to repay that debt.
- Must demonstrate exceptional financial need (EFC of 4700 or less).
- Must use all Federal Subsidized Stafford loans.
- After October 1, 2016, the student must:
- Meet all of the eligibility criteria above;
- Have borrowed his or her maximum Federal Direct Subsidized Loan for the year.
How to Apply
- File the Free Application for Federal Student Aid (FAFSA).
- Submit a signed Perkins Loan Request Form to the Office of Student Financial Aid.
- 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 $2,500 per student and is contingent on availability of funds.
- 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.
Information is also available by calling the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243).