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Perkins Loans
The Student Loan Comparison Chart on this page shows the maximum Perkins Loan funds you can receive, depending on whether you’re an undergraduate, graduate or professional degree student. However, the amount you can borrow might be less than the maximum available.
- Each school participating in the Federal Perkins Loan program receives a certain amount of Perkins funds each year from the U.S. Department of Education’s office of Federal Student Aid.
- Due to limited funds, it’s important to apply early to be considered for these funds. Not everyone who qualifies for Perkins Loan might get one.
- Submit your FAFSA early so you can be considered for these funds.
Stafford Loans (Direct and FFEL)
The Maximum Annual Loan Limits Chart¡XSubsidized and Unsubsidized Direct and FFEL Stafford Loans on page 21, shows that your loan limits depend on:
- What year you are in school.
- Whether you are a dependent or independent student.
Subsidized Stafford Loan
- Available to students who demonstrate financial need.
- Eligible students can borrow a subsidized Stafford Loan to cover some or all of their need.
- For a subsidized loan, the U.S. Department of Education pays the interest:
- While you're in school at least half-time.*
- For the first six months after you leave school (referred to as a "grace period").
- During a period of deferment (a postponement of loan payments).
The amount of your subsidized loan cannot exceed your financial need.
Unsubsidized Stafford Loan
- Does not require students to demonstrate financial need.
- You are responsible for paying interest on subsidized loans.
To determine the amount of your unsubsidized loan, your school will use this equation:
Cost of attendance*
- Federal Pell Grant (if eligible)
- Subsidized Stafford Loan amount
(if eligible)
- Any other financial aid you receive
= Amount of unsubsidized loan you receive
(up to the annual maximum loan amount) |
Depending on your financial need, you may receive both subsidized and unsubsidized loans for the same enrollment period, but the total amount of these loans may not exceed the annual loan limit.
For an unsubsidized loan:
- You’re responsible for paying the interest that accrues on the loan from the time the loan is disbursed until it’s paid in full.
- You can pay the interest while you’re in school or during a period of deferment or forbearance.
- Or, you can allow the interest to accrue (accumulate) and have the interest added to the principal* amount of your loan. This is called capitalization. If you choose not to pay the interest as it accrues and allow it to be capitalized,* this will increase the total amount that you have to repay because you will be charged interest on a higher principal* amount.
- Federal Perkins Loans—No.
- Direct Loans—Yes, for all Direct Subsidized Loans and Direct Unsubsidized Loans first disbursed on or after July 1, 2008 and before July 1, 2009, the loan origination fee is 2.0 percent. The Direct PLUS Loan origination fee is 4 percent for loans made to both parent and graduate and professional degree student borrowers.
- FFEL Loans—Yes, you may be charged fees comparable to the fees charged for Direct Loans. Contact your lender for more information.
Perkins Loans:
- Your school will either pay you directly (usually by check) or credit your account.
- Generally, you’ll receive the loan in at least two payments during the academic year.*
Stafford Loans:
- In general, your school will disburse your loan in at least two installments—there might be certain exceptions.
- No installment will be greater than half the amount of your loan.
- If you’re a first-year undergraduate student and a first time borrower, your first disbursement can’t be made until 30 days after the first day of your enrollment period.
- If you’re a first-time borrower you must complete entrance counseling before you receive your first loan disbursement.
Student loan money must first be used to pay for your tuition, fees and room and board. If loan funds remain, you’ll receive them by check or in cash, unless you give the school written permission to hold the funds until later in the enrollment period.
Maximum annual loan limits chart (aggregate loan limits)—Subsidized and unsubsidized direct and FFEl Stafford loans
| Year |
Dependent Undergraduate Student (except students whose parents are unable to obtain PLUS Loans) |
Dependent Undergraduate Student (except students whose parents are unable to obtain PLUS Loans) |
Graduate and Professional Degree Student |
| First Year |
$3,500 plus $2,000 in unsubsidized loans |
$9,500—No more than $3,500 of this amount may be in subsidized loans. |
$20,500—No more than $8,500 of this amount may be in subsidized loans. |
| Second Year |
$4,500 plus $2,000 in unsubsidized loans |
$10,500—No more than $4,500 of this amount may be in subsidized loans. |
| Third and Beyond (each year) |
$5,500 plus $2,000 in unsubsidized loans |
$12,500—No more than $5,500 of this amount may be in subsidized loans. |
| Maximum Total Debt from Stafford Loans When You Graduate (aggregate loan limits) |
$31,000 (maximum $23,000 subsidized) |
$57,500—No more than $23,000 of this amount may be in subsidized loans. |
$138,500—No more than $65,500 of this amount may be in subsidized loans. The graduate debt limit includes Stafford Loans received for undergraduate study. |
NOTE: The amounts shown in the chart above are the maximum amounts that you may borrow for an academic year.* You might receive less than the maximum if you receive other financial aid that’s used to cover a portion of your cost of attendance.* The maximum amount you may borrow will also be less in certain situations, such as if you are an undergraduate student enrolled in a program of study that is shorter than an academic year.*
Graduate and professional students enrolled in certain health profession programs may receive additional unsubsidized Stafford Loan amounts beyond those shown above.
Your school can refuse to certify your loan or can certify a loan for an amount less than you would otherwise be eligible for if the school documents the reason for its action and explains the reason to you in writing. The school’s decision is final and cannot be appealed to the U.S. Department of Education.
The information in this guide was compiled in the summer of 2008. For changes to the federal student aid programs since then, visit www.FederalStudentAid.ed.gov and click on "Students, Parents and Counselors."
DID YOU KNOW …
Our team is responsible for much more than processing aid applications and issuing loans. Though these are significant responsibilities in their own right, we also work closely with 3,000 or more private lenders that participate in our programs and more than 6,000 colleges and vocational schools that administer our funds. Part of this function is oversight: we’re charged with making sure that they treat borrowers fairly and ethically. |
Yes. Before your loan money is disbursed, you may cancel all or part of your loan at any time by notifying your school. After your loan is disbursed, you may cancel all or part of the loan within certain timeframes. Your promissory note* and additional information you receive from your school will explain the procedures and timeframes for canceling your loan.
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