Federal Perkins Loans

What are Federal Perkins Loans?

A Federal Perkins Loan is a low-interest (5 percent) loan with no origination fee. Your school is your lender. The loan is made with government funds and your school contributes a share. You must repay this loan to your school.

How do I know if I am eligible?

In order to determine your eligibility for a Federal Perkins Loan, you will need to complete a Free Application for Federal Student Aid (FAFSA). Federal Perkins Loan funds are limited in quantity so priority is given to students who complete their financial aid files before April 15th. If North Central still has funds available and you qualify to borrow a Federal Perkins Loan, you will be sent an award letter stating the amount you are eligible to borrow. North Central awards eligible students up to $2000 in Federal Perkins Loans per academic year.

How do I borrow this loan?

1. If you choose to accept the loan, please indicate the amount you are accepting on the Award Letter.
2. Return the Award Letter to the Financial Aid Office as soon as possible to ensure that loan funds are reserved for you.
3. After North Central receives your Award Letter, you will be sent an email, which will include your PIN, inviting you to complete Entrance Counseling and sign your Perkins Master Promissory Note online.

Your loan will not be credited to your student account until this process has been completed.

May I decline the loan now and borrow it at a later time?

No. North Central has a limited amount of funds available to award to eligible students each academic year. If you decline the loan, it will be awarded to someone else.

How will I receive the loan funds?

Your loan will be equally divided between the fall and spring semesters. Funds will be applied to your charges at North Central. If any funds remain on your student account after your allowable charges have been paid, you will be issued a refund check. If you do not wish to receive a refund check, you must give written authorization to the Student Accounts Office to hold the funds.

When do I pay back this loan?

Payments begin nine months after you graduate, withdraw, or drop below half-time enrollment. There are no pre-payment penalties. Any amount paid before the end of the nine-month grace period will be interest-free. The minimum monthly payment is $40, but may be more depending on the amount borrowed. You must pay back the loan within 10 years, or earlier if the minimum payment required satisfies the loan before that time.

If you borrow other types of loans, keep in mind you will have separate payments on each loan unless you consolidate qualifying loans after graduation.

Examples of typical payments for Perkins Loan repayment: