The Federal Perkins Loan is a federally funded long-term, low-interest loan with repayment deferred until after you graduate, withdraw, or drop to less than half-time enrollment. The Perkins Loan program expired as of September 30, 2017.
Undergraduate students may borrow up to $4,000 an academic year, up to a total of $27,500 toward an undergraduate degree through the Federal Perkins Loan program. Repayment is made in equal installments, beginning nine months after you withdraw, graduate, or drop to below half-time status. The minimum repayment amount is $40 a month, and 5% interest is charged on the unpaid balance.
The maximum time for repayment is ten years, not including deferred payment time. Provisions are made for deferment or cancellation of loan repayment under specific circumstances.