Federal Perkins Loan
Annual maximum loan: Undergraduate:$4,000 Graduate:$6,000
Aggregate maximum loan: Undergraduate:$20,000 Graduate:$40,000
Student must be enrolled at least half time to receive Federal Perkins Loan.
Fees for Borrowing
No fees are charged for initiating a Federal Perkins Loans.
If you skip a payment, make a late payment, or do not pay the full amount when due late fees and possibly additional collection fees will be assessed. These fees will continue to accrue until all payments are current.
There is a 5% fixed interest rate for the Federal Perkins Loans. Interest will begin to accrue nine months after a borrower drops below a half-time status, graduates, or withdraws or leaves school.
Consequences of Default
If a borrower fails to repay his/her student loan on a timely basis, he/she will be considered in default and could encounter the following consequences:
- The remaining balance and interest will become due immediately.
- Your credit rating could be tainted for up to 7 years and will be reported to two national credit bureaus.
- Late charges will be assessed.
- Access to institutional records will be restricted.
- You could be declared ineligible for further federal and state financial aid.
- The loan will be placed with an attorney or debt collection agency. Any fees that are acquired for collection of loan will be charged to you, the borrower.
- You could be sued in court to compel you to repay the loan. The borrower will also be charged any attorney fees if judgment is not in the borrower's favor.
- Your wages may be garnished to repay your loan.
- Your state and/or federal income tax refund may be seized to repay part or all of your debt.