2013-2014 Perkins LoanTerms and Conditions
The Federal Perkins Loan is a 5% interest loan for students with exceptional financial need. To apply, students must complete the Free Application for Federal Student Aid (FAFSA) and be found eligible by the Financial Aid Office. LMU acts as the lender for this loan.
If you’re an undergraduate student, you may borrow up to $4,000 a year with a total maximum of $20,000 borrowed during your undergraduate years. Each university determines the maximum Federal Perkins Loan that is can offer based on its level of funding. LMU offers a maximum Federal Perkins Loan of up to $2,000 to those students who qualify.
Funding is not available to offer the Federal Perkins Loan for summer enrollment.
If you accept this loan you must:
- Sign and submit your promissory note. The promissory note is signed the first year you receive the loan and is in effect for future Federal Perkins Loans you borrow at LMU as long as you remain continuously enrolled. A promissory note is a legal contract which states you, the borrower, will repay the loan. After submitting your commitment deposit to LMU, freshmen will be notified on how to complete the Federal Perkins Master Promissory Note.
- Complete online Federal Perkins Loan Entrance Counseling.
- Once you complete the Federal Perkins Loan Master Promissory Note and the online Federal Perkins Loan Counseling, loan funds will be disbursed to your LMU Student Account, no earlier than 10 days prior to the start date of the semester. Loans are disbursed half in the fall semester and half in the spring semester.
Eligibility for this loan in future years will be based on available funding. To be considered for the Federal Perkins loan in future years, you must:
- Apply for financial annually by completing the Free Application for Federal Student Aid and LMU Financial Aid Application and meet federal student aid eligibility requirements.
- Continue to meet financial need requirements.
Payments on the Federal Perkins Loan begin nine months after you graduate or leave school. How much you pay back each month will depend on how much you borrowed and how long you have to repay your loan. Repayment is handled by LMU Controller’s Loan Department.