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Federal Perkins Loan


Federal Perkins Loans are low-interest loans for undergraduate and graduate students who complete a FAFSA and demonstrate exceptional financial need.


Eligibility


The student:

  • Must be fully admitted as a degree-seeking student in an undergraduate or graduate program at ISU.
  • Must be enrolled at least half-time when the loan is expected to be disbursed.
  • Must maintain Satisfactory Academic Progress standards.
  • Must be a U.S. Citizen or eligible non-citizen.
  • Must not be in default on an educational loan or owe an overpayment on a federal education grant, or other federal debt, or has made satisfactory arrangements to repay that debt.
  • Must demonstrate exceptional financial need (EFC of $4,500 or less).

How to Apply

  1. File the Free Application for Federal Student Aid (FAFSA).
     
  2. Submit a signed Perkins Loan Request Form to the Office of Student Financial Aid.
     
  3. Borrowers must complete the Master Promissory Note (MPN), as well as Entrance Counseling, in person with the Office of the Controller. Entrance Counseling provides helpful borrower information on important topics such as entering repayment, debt management, default resolution, and the mechanics of paying back your loan. Please note that the MPN must be signed each year.

Amounts


Because Perkins loans are funded by institutional dollars, funding is limited. Hence, borrowers who file the FAFSA by the March 1st ISU priority date are most likely to be offered this loan.

  • Interest is assessed at 5% APR fixed once the student drops below half-time enrollment or graduates. Interest will not collect while the student is enrolled in 6 or more credit hours.
     
  • Repayment begins after a 9-month grace period.
     
  • The award amount is $1,500.

Disbursement

  • Loan funds are applied to student accounts approximately ten days before the start of the semester.
  • If the borrower applies for a full academic year loan, half of the amount applied for is disbursed at the start of the fall semester and the other half at the start of the spring semester.
  • Funds will first cover any charges on the student's account.
  • Any excess funds are refunded to the student via ACH direct deposit or sent to student's permanent address.

Repayment


To find out more about repayment options before receiving a Perkins Loan, borrowers may contact the Office of the Controller at Indiana State University.

Information is also available by calling the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243).

Contact

Student Financial Aid
220 North 7th Street
150 Tirey Hall
Indiana State University
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