Federal Perkins Loan
A Perkins Loan is a low interest loan only awarded to undergraduate students demonstrating a high financial need. For priority consideration, the student’s FAFSA on the web should be processed by March 1. The amount of the award varies.
Perkins Loan Definition Chart
| Repayment | Begins 9 months after student:
|
Interest Rate |
5% fixed. |
Interest Subsidy |
Interest does not begin to accrue or calculate until student enters repayment. |
Fees |
No fees. |
Perkins Loan Debt |
Retrieve student loan information at the MNU servicer’s web site: University Accounting Service. |
Perkins Cancellation Benefits |
Check to see if you are entering a career that may lead to cancellation benefits for the Federal Perkins Loan. |
Completion Requirements
- Login to MNU account and accept all or part of the loan award.
- A student must be enrolled in at least 9 hours each semester to receive the Perkins Loan. The loan will pay towards your student charges for the amounts per term as listed on your Financial Aid Award letter, which should be viewed through the access of your MNU web account.
- First time MNU Perkins borrowers must complete a Perkins Loan Counseling Interview with the MNU Student Financial Services Office. Meeting times will be scheduled at the beginning of each semester and students will be notified via their MNU email address.
- The Master Promissory Note, Truth-in-Lending Statement, and Rights and Responsibilities will be available to sign at the Perkins Loan Counseling Interview.
Additional Perkins Loan Repayment Information
- The Federal Perkins Loan repayment is collected by MidAmerica Nazarene University. MNU has hired a third party to act as a servicer for the borrower’s account once the loan enters grace status.
- The student will need to complete an Exit Interview, offered on line by the servicer, once the student graduates, leaves MNU, or drops below half-time enrollment.
- The minimum monthly payment is $40 per month.
- The length of repayment is determined by the minimum monthly payment and the borrower’s principal balance. The maximum repayment period is 10 years.
- The Perkins Loan can be pre-paid with no penalties.
- Deferment options include economic hardship, unemployment, and in-school status.
- Cancellation options include teaching in designated low-income schools, teaching in the Head Start program, Peace Corp volunteer, nurse or medical technician, law enforcement, and employee of a child or family service agency.
- The borrower is responsible for filing all deferment, cancellation, and forbearance forms in a timely manner.
- Payment history is reported monthly to at least one of the three major credit bureaus.
