Federal Carl Perkins Loan

General Information

Source of Funds: Federal Government and Purdue University

Loan Amounts Annual Maximum: Depends on financial need as calculated by the Division of Financial Aid.  Maximum award is usually $1,700.           

Application Procedure: File FAFSA by March 1 for consideration; award based on level of financial need.

Aggregate Maximums: Undergraduate -- $15,000    Graduate -- $30,000

Minimum Credit Hours Per Semester: Undergraduate -- 6   Graduate -- 5 

Cosigner Required?: No.

Rate of Interest: 5% Annually on declining balance

Origination/Insurance Fees: None.

Repayment: $40 minimum monthly payment.  Larger amount may be required, if necessary, to repay loan within time limit.

Early Repayment Penalty: None.

Maximum Repayment Period: 10 years.

Consequences of Delinquency (on Defaulted Loan made by Purdue): Account will be listed with a collection agency.  Report will be made to a credit bureau.  Readmission to Purdue University will be denied and official transcripts withheld.  All further aid at Purdue University will be denied to student.  Legal action will be taken on extended default.

Borrower's Benefits

Interest Benefits: Borrower pays no interest while enrolled in school at least half time or during the grace period after leaving school.

Grace Period: The nine month period from the date the student ceases half-time enrollment status.  No interest accrues during grace period.  No payment due, but voluntary payment may be made to reduce interest after grace period.

Deferred Payment Provisions: Applications are obtained and deferments granted through lender of the funds.  Borrowers should seek detailed information from the lender. For Purdue borrowers, contact UCO.

Cancellation Provisions:  Loans may be cancelled under the following conditions: 1) Death of the borrower;  2) Total disability of the borrower;  3) Certain types of military service; or 4) Certain professions. Refer to exit materials for more details or contact UCO.

Borrower's Responsibilities

Entrance/Exit Interview: Handled through Purdue University Collections Office (UCO).  Report to UCO prior to dropping below half-time status, withdrawing, graduating, or transferring.

Notification of Change of Name and/or Address: Notify UCO, Purdue University, West Lafayette, IN 47907-1081.