Federal Carl Perkins Loan
General Information
Source of Funds: Federal Government and Purdue University
Loan Amounts Annual Maximum: Depends on financial need as calculated by the Division of Financial Aid. Maximum award is usually $2,000.
Loan Deadline: Perkins Loans may be processed if accepted within 45 days of the start of the fall semester.
Steps to apply for a Federal Perkins Loan
- File the Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov (this is a requirement) by March 1 for consideration and submit all documents requested by the Division of Financial Aid (DFA). Check for required documents via the online Financial Aid Self Service system at myPurdue. This award is based on level of financial need as determined by the FAFSA.
- DFA will send the student an Award Notice that the borrower can use to determine loan period, the type of eligibility, and the amount of eligibility.
- The borrower needs to determine how much they want to borrow and will have the option to accept the full amount offered or reduce the loan amount at myPurdue.
- The borrower must also complete a Master Promissory Note (MPN) at www.ecsi.net/prom3P. There will be a waiting period of three business days before this signed MPN can be processed.
- Perkins loan funds are processed electronically through the Purdue Bursar. The student will be notified by the Bursar's Office that funds have been processed. Funds are applied first to fees, then to any housing costs (if the Bursar bills for housing). Any remaining Perkins funds are sent to the student via paper check or direct deposit.
Aggregate Maximums: Undergraduate -- $20,000 Graduate -- $40,000
Minimum Credit Hours Per Semester: Undergraduate -- 6 Graduate -- 4
Cosigner Required?: No.
Rate of Interest: 5% Annually on declining balance
Origination/Insurance Fees: None.
Repayment: $40 minimum monthly payment. Larger amount may be required, if necessary, to repay loan within time limit.
Early Repayment Penalty: None.
Maximum Repayment Period: 10 years.
Consequences of Delinquency (on Defaulted Loan made by Purdue): Account will be listed with a collection agency. Report will be made to a credit bureau. Readmission to Purdue University will be denied and official transcripts withheld. All further aid at Purdue University will be denied to student. Legal action will be taken on extended default.
Borrower's Benefits
Interest Benefits: Borrower pays no interest while enrolled in school at least half time or during the grace period after leaving school.
Grace Period: The six- or nine-month period from the date student ceases half-time enrollment status. No interest accrues during grace period. No payments due, but voluntary payments may be made to reduce interest after grace period.
Deferred Payment Provisions: Applications obtained and deferments granted through Educational Computer Systems, Inc. (ECSI). Borrowers should seek detailed information at www.ecsi.net.
Cancellation Provisions: The loan may be cancelled under the following conditions: 1) death of borrower, 2) total disability of borrower, 3) certain types of military service (contact ECSI for details), 4) obtain employment in a qualifying teaching service, 5) certain types of employment service (contact ECSI).
Borrower's Responsibilities
Entrance/Exit Interview: Handled through Educational Computer Systems, Inc. (ECSI). Report to ECSI prior to dropping below half-time status, withdrawing, graduating, or transferring.
Notification of Change of Name and/or Address: Notify Educational Computer Systems, Inc., 181 Montour Run Road, Coraopolis, PA 15108; Phone 1-888-549-3274
Eligible for Federal Direct Consolidation: Yes.