Federal Perkins Loan
The Perkins Loan is awarded to students with exceptional financial need. This is a federal loan program, with the school acting as the lender using a limited pool of funds provided by the federal government. The Perkins Loan is a subsidized loan, with the interest paid by the federal government during the in-school and 9-month grace periods. There are no loan fees, and the interest rate is fixed at 5%. There is a 10-year repayment period.
How to Apply for a Federal Perkins Loan
The Perkins Loan is awarded to students with exceptional financial need. A Federal Perkins Loan will be offered only if funding is available, you are eligible, and you request loans on your FAFSA. Indicate your interest in loans by answering Question 26 on the 2008-09 FAFSA or Question 31 on the 2009-10 FAFSA. Enter 2 for loans only or enter 3 for both loans and work-study. FIle early every year, as soon as possible after January 1. Perkins loans will be awarded until our funding is depleted.
Loan Counseling Requirement
Federal Perkins Loan recipients must complete entrance loan counseling before the loan can be disbursed. Before graduation, transfer to another institution, or otherwise separating from Wayne State University, Federal Perkins Loan recipients must also complete exit loan counseling.
Perkins Loan Entrance Counseling
Campus-Based (Perkins, Health Professions & Nursing) and Institutional Loans Exit Counseling
Perkins Promissory Note
If you are awarded a Federal Perkins Loan, you must complete and sign a Master Promissory Note (MPN) before the loan can be disbursed. The MPN lists the terms under which you are borrowing and agree to pay back the loan.
Notice: You must complete a new Federal Perkins Loan MPN every year.
Perkins Electronic MPN Option:
You can complete and electronically sign the MPN on Pipeline from the “Outstanding Requirements” page (within Pipeline) after you have accepted your loan offer.
Perkins Paper MPN Option:
You may complete a paper MPN for your Perkins loan by filling out the following form: Federal Perkins Loan Master Promissory Note.
Federal Perkins Loan Annual Limits and Total Maximum Limits
The actual amount that you can borrow in any year is dependent on available funding.
The total amount you can borrow as an undergraduate student is $27,500. You can borrow up to $5,500 for each year of undergraduate study.
The total amount you can borrow as a graduate or professional student is $60,000, including any Federal Perkins Loans you borrowed as an undergraduate. You can borrow up to $8,000 for each year of graduate or professional study.
Federal Perkins Loan Cancellation
Under certain conditions, a Federal Perkins Loan that is not in default can qualify for cancellation. A summary of the cancellation conditions is provided in on the Federal Student Aid web site. More information on teaching service cancellation and other forgiveness options is available online.
Only the school that grants the Federal Perkins Loan can determine if the borrower is entitled to have any portion of the loan cancelled. If you borrowed a Federal Perkins Loan while enrolled at Wayne State University, questions concerning cancellation should be directed to:
Office of Student Accounts Receivables, Wayne State University Welcome Center, 4th Floor, 42 West Warren Avenue, Detroit, Michigan 48202, (313) 577-3653
Federal Perkins Loan Repayment Assistance
MappingYourFuture.org: Loan Cancellation, Forgiveness, and Discharge Chart
Repayment assistance (not cancellation) is available through the U.S. Department of Health and Human Services’ Nursing Education Loan Repayment Program (NELRP). This program will help repay student loans for registered nurses in exchange for their service in eligible facilities located in areas experiencing a shortage of nurses. All NELRP participants must enter into a contract agreeing to provide full-time employment in an approved eligible health facility for two or three years. Click here for more information.
Federal Perkins Loan Credit Reporting Requirement
Wayne State University must report the date and amount of each disbursement of Federal Perkins Loan funds to at least one national credit bureau.