Federal Perkins Student Loan
On October 1, 2014, the Federal Perkins Loan Program was given a one year extension until September 30, 2015. If Congress does not act to continue funding this program by September 30, 2015, on October 1, 2015 this program will cease to exist in its current form. Beginning with the 2015-2016 school year, the School of Mines will begin a gradual shut-down of the program with award recipients only those students who are allowed to be grandfathered for continuation who have previously borrowed a Perkins Loan for attendance at the School of Mines and have not changed their degree program since the last disbursement received of a Perkins Loan at Mines. The School of Mines will continue funding these students until they: 1) finish their degree; or 2) cease pursuing a degree at Mines; or 3) change to a different degree program at Mines; or 4) until September 30, 2020, whichever comes first. If Congress takes action to continue funding the program prior to October 1, 2015, we will at that time open funding to students who would have normally been offered a Perkins Loan as in prior years (such as incoming freshman, transfer students and students not previously offered a Perkins Loan at Mines).
We will allow students to request to be placed on a waiting list. Priority will be given to students who previously received a Perkins Loan at Mines, but were not originally offered one for 2015-16. Students who have never received a Perkins Loan disbursement at the School of Mines prior to July 1, 2015 may be considered, but if Congress does not authorize the continuation of the program and they are awarded a Perkins Loan for 2015-2016, it will be the only year they will receive this type of loan because they do not meet the grandfathering requirement.
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 meet the criteria stated above 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 $3000 (however, depending on the situation and available funds, this amount can be more). Students who began their academic career at Mines, borrowed a Perkins while attending and graduated from the School of Mines with a Bachelors Degree during the 2013-2014 academic year, had an average Perkins indebtedness of approximately $2,460. 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 beginning 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.