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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.
At the time this publication went to print, Congress was considering a proposal that would eliminate the FFEL Program, beginning with the 2010-11 school year, and would have Stafford, PLUS and consolidation loans funded from the Direct Loan Program. For up-to-date information, please visit www.FederalStudentAid.ed.gov.
Student Loan Comparison Chart
| Loan Program
| Eligibility
| Award Amounts
| Interest Rates
| Lender/Length of Repayment
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| Federal Perkins Loans |
Undergraduate and graduate students |
Undergraduate—up to $5,500 a year (maximum of $27,500 as an undergraduate)
Graduate—up to $8,000 a year (maximum of $60,000, including undergraduate loans)
Amount actually received depends on financial need, amount of other aid, availability of funds at school |
5% |
Lender is your school
Repay your school or its agent
Up to 10 years to repay, depending on amount owed |
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FFEL Stafford Loans (subsidized and unsubsidized)
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Undergraduate and graduate students; must be enrolled at least half-time
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Depends on grade level in school and dependency status, see chart below.
Financial need is required for subsidized loans
Financial need not necessary for unsubsidized loans
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Fixed rate of 5.6% for subsidized loans with a first disbursement date between July 1, 2009 and June 30, 2010 (see page What's the interest rate on these loans?)
Fixed rate of 6.8% for subsidized loans made to graduate students and for all unsubsidized loans
The federal government pays interest on subsidized loans during school and certain other periods The borrower pays all interest on unsubsidized loans
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Lender is a bank, credit union or other participating private lender
Repay the loan holder or its agent
Between 10 and 25 years to repay, depending on amount owed and type of repayment plan selected
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Direct Stafford Loans (subsidized and unsubsidized)
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Same as above |
Same as above |
Same as above |
Lender is the U.S. Department of Education; repay Department
Between 10 and 25 years to repay, depending on amount owed and type of repayment plan selected
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FFEL PLUS Loans
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Parents of dependent undergraduate students enrolled at least half-time (see dependency status)
Graduate or professional degree students enrolled at least half-time
Borrower must not have negative credit history |
Student’s cost of attendance
- Other aid student receives
_________________________
= Maximum loan amount
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Fixed rate at 8.5%; borrower pays all interest
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Same as for FFEL Stafford Loans above
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Direct PLUS Loans |
Same as above |
Same as above |
Fixed rate at 7.9%; borrower pays all interest |
Same as for Direct Stafford Loans above |
Stafford Loans (Direct and FFEL)
The Maximum Annual Loan Limits Chart—Subsidized and Unsubsidized Direct and FFEL Stafford Loans (chart below) 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 and unsubsidized loans during all periods.
To determine the amount of your unsubsidized loan, your school will use this equation:
Cost of attendance
= 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, 2009 and before July 1, 2010, the loan origination fee is 1.5 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 FFELSM Stafford loans
| Year |
Dependent Undergraduate Student (except students whose parents are unable to obtain PLUS Loans) |
Independent Undergraduate Student (and dependent students whose parents are unable to obtain PLUS Loans) |
Graduate and Professional Degree Student |
| First Year |
$5,500—No more than $3,500 of this amount may be in subsidized 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 |
$6,500—No more than $4,500 of this amount may be in subsidized loans. |
$10,500—No more than $4,500 of this amount may be in subsidized loans. |
| Third and Beyond (each year) |
$7,500—No more than $5,500 of this amount may be in subsidized 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—No more than $23,000 of this amount may be in subsidized loans. |
$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 (annual loan limits) and in total (aggregate loan limits). These are combined annual and aggregate loan limits for Stafford Loans received under both the FFEL and Direct Loan programs. 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 2009. For changes to the federal student aid programs since then, visit www.FederalStudentAid.ed.gov.
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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