Under federal law, the authority for schools to make new Perkins Loans ended on September 30, 2017, and final disbursements were permitted through June 30, 2018. As a result, students can no longer receive Perkins Loans. A student who received a Perkins Loan can learn more about managing the repayment of the loan by contacting Kingsborough Community College.
What is a Federal Perkins Loan?
A Federal Perkins Loan is a low-interest (5%) loan that was awarded to students with exceptional financial need. The Perkins Loan is not a grant, it is a loan, which means that all funds borrowed must be repaid. The loan is made with government funds and a share contributed by Kingsborough Community College. This loan must be repaid to Kingsborough Community College.
Prior to September 30, 2017, students could be awarded up to $5,500 for each year of undergraduate study. The maximum amount students can borrow as undergraduates is $27,500. Repayment
Students are not required to make loan and/or interest payments while enrolled in school. After graduating, withdrawing or dropping below half-time (6 credits), students are given a grace period of 9 months before repayment of the Perkins Loan begins. When students cease to be enrolled, they must complete an online exit counseling session, which will once again review the financial responsibilities of borrowing a Perkins Loan, the repayment agreement, and repayment options. Several options exist to repay this loan; the minimum monthly payment begins at $40.00 per month.
Deferment, Postponement, and Cancellation
Students may defer or postpone payments for a variety of reasons as discussed during the entrance and exit counseling sessions. The entrance and exit counseling sessions also discuss the fields of work for which Perkins Loan cancellation is possible.