A Federal Perkins Loan is a low-interest (fixed at 5 percent) loan for students with exceptional financial need. PSU is the lender, and the loan is made with government funds. You must repay this loan to PSU. The loan funds will be disbursed in two payments during the academic year and will be applied to your PSU charges. You apply for a Federal Perkins Loan by completing a Free Application for Federal Student Aid (FAFSA) and meeting PSU’s priority filing deadline of March 1.
Have you been awarded a Federal Perkins Loan? If so, the following two (2) steps must be completed:
1. Complete an Online Entrance Counseling session using the Federal Perkins Entrance Counseling website. This process takes approximately 20 minutes to complete.
2. Sign a Federal Perkins Loan Master Promissory Note (MPN). You will receive additional communications via email in early summer regarding the process to complete this MPN.
How Much Can I Borrow? The amount you’re awarded is dependent upon your financial need, the program funding level at PSU and meeting PSU’s priority filing deadline of March 1. Due to limited funds, only first and second-year students with the highest financial need (generally those students who are eligible for Federal Pell Grants), may receive Federal Perkins loans.
Other Than Interest, Is There a Charge for This Loan?
The current interest rate on the loan is fixed at 5 percent and no interest will accrue until repayment begins. However, once you are in repayment, if you skip a payment, if it is late, or if you make less than a full payment, you may be required to pay a late charge plus any collection costs.
When Do I Pay It Back?
If you are attending school at least half-time, you have nine months after you graduate, leave school or drop below half-time status before you must begin repayment. This is called the “grace period.” If you’re attending less than half-time, check with the Collection Office to find out how long your grace period will be.
Can I Cancel the Loan If I Change My Mind, Even If I’ve Signed the Promissory Note Agreeing to the Terms?
Yes. You may cancel all, or a portion, of your loan if you inform PSU within 14 days of the funds being credited to your account.
You may access your prior loan information on the National Student Loan Data System (NSLDS) website. This site contains all of your federal Title IV grant and loan history.
You may also view your PSU Loan History online to determine the total amount borrowed in Federal, Private and PLUS loans while at PSU. This information pulls student’s loan history (accessed from the PSU portal) and displays it to help each student understand the impact of loan debt upon graduation and repayment. Students can track this information beginning their first year at PSU through the time they graduate.
Information about loan discharge and cancellations can be found on the Department of Education website.
The Federal Student Aid Ombudsman of the Department of Education helps resolve disputes and solve other problems with federal student loans. Please do not hesitate to contact them at 1-877-557-2575 should you feel they can be of assistance.