Federal Perkins Student Loan
The Federal Perkins Student Loan Program is administered by the School of Mines and like any loan, must be repaid. Awarding priority is given to students who show financial need through the FAFSA and who have filed their FAFSA on January 1 (prior to the fall semester the student will be attending Mines) and thereafter until funds are exhausted for the award year. Although the annual loan limits set by Congress are $5500 a year for undergraduate students and up to $8000 a year for graduate students, in an effort to make this loan program available to as many of our students as possible, the maximum annual award at this time at the School of Mines is $2500 (however, depending on the situation and available funds, this amount can be more). Students who borrowed Perkins loans at some point during their academic career and graduating from the School of Mines during the 2012-2013 academic year, had an average Perkins indebtedness of approximately $2,165. This would result in a minimum monthly payment of $40. Students are under no obligation to accept a student loan and should do so only after considering the long-term implications of borrowing.
Arrangements will be made to obtain the student's signature on a Master Promissory Note (MPN) before the first disbursement of the Perkins Loan. Students must also sign a statement prior to each disbursement showing their total Perkins borrowing at the School of Mines. Repayment is to be worked out with the Business Office when the borrower graduates or is no longer enrolled at least half-time. No payments are required during any period of at least half-time enrollment at at an eligible post-secondary institution or when approved for one of the many available deferments. (However, it is the borrowers responsibility to file the necessary paperwork with the Business Office or our loan servicing agent before an eligible deferment will be processed.) After you cease to be enrolled at least half-time, you are eligible for a nine-month grace period before begining repayment. During the repayment period, the interest rate on this loan is 5% on the unpaid principal balance. Depending on how much has been borrowed, repayment may be up to 10 years. The MPN will detail the deferments that are available and under what circumstances the Perkins Loan can be canceled. This information is also available at the Perkins Loans and What You Should Consider Before Borrowing links.