The Federal Perkins loan program is a source of low-interest loans for students, with awards going first to students who show exceptional need. To qualify for a Perkins loan, students must complete the FAFSA; demonstrate financial need; enroll as a matriculated undergraduate student in an eligible degree program for at least six credit hours; be a U.S. citizen or resident alien; and not be in default on a prior student loan. Funds are limited and are awarded on a first come, first served basis. Although it is unlikely, acceptance of these funds may impact your eligibility for other forms of need based aid.
A Perkins loan may only be used for educational expenses and has a fixed interest rate of 5%. Interest does not begin to accrue until nine months after the student ceases to be enrolled on at least a half-time basis (six credit hours). Repayment begins nine months after you graduate, withdraw from classes, or fall below half-time status. Students are allowed up to ten years to repay the total amount borrowed from the Federal Perkins Loan program.
If you do not plan to borrow the Federal Perkins loan, please return a signed copy of your award letter or provide some other written correspondence declining the loan. If we do not hear from you, it will be assumed that you have accepted the loan in the amount offered for that academic year. Perkins loan renewal is dependent upon the student filing the FAFSA each year prior to the funds being exhausted. The student must continue to meet the eligibility requirements and satisfactory academic progress. Borrowers should be aware that their loan will be submitted to the National Student Loan Data System (NSLDS) and will be accessible by authorized agencies, lenders, and institutions.
In order to credit your Federal Perkins Loan to your account, you must complete both a Master Promissory Note (MPN) and an Entrance Counseling Session. The MPN will serve as the note for ALL Perkins loans borrowed throughout your enrollment at Monmouth University and/or up to 10 years from the date you sign this note. This multi-year feature on your MPN will be revoked only if we receive: a) written notification from you that you no longer want any further disbursements made under the MPN or b) 12 months after the date you signed the note have elapsed and no disbursement has been made during that 12-month period. The MPN may also be revoked in a situation such as bankruptcy. The Entrance Counseling Session will provide you with information regarding your rights and responsibilities as Perkins Loan borrower. For your convenience, we have made it possible for you to sign and submit the MPN electronically; you may complete the Entrance Counseling Session online as well.
To complete your Federal Perkins Loan MPN electronically*
*Please note that at any time during the e-signature process you may withdraw your consent to electronically sign your Federal Perkins Loan Master Promissory Note. If you do not with to electronically sign, you may opt to print the promissory note and mail it to the Financial Aid Office.
To complete the Entrance Counseling Session electronically*
*Please note that if you exit the session before completing it, your data will not be saved and you must go back to the beginning of the session when you return.
All Perkins loans are repaid to Monmouth University. The federal government requires that students complete an exit counseling session when they graduate, withdraw, or drop below half-time attendance (i.e., less than six credits). For your convenience, you are now able to complete this session online. Use the following link to begin a Perkins Exit Counseling session.
Perkins loans may be consolidated with other federal loans such as Federal Stafford loans. To learn more about loan consolidation or the U.S. Army Loan Repayment Program and Military Deferment, please click HERE.
There are provisions for deferment of repayment for a variety of situations. For loans made on or after July 1, 1993, deferments are available to borrowers who are:
Finally, some Perkins loan borrowers are eligible to have all or part of their loans canceled, including those who:
A percentage of an eligible borrower's Federal Perkins Loan will be canceled for each completed year of service in one of these categories, including the interest that accrued during that year. For more information on loan cancellation, click HERE. You will need to login to your account, click on Forms, then click on Cancellations. You will be able to download the form appropriate to your situation.