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Types of Assistance » Loans » Federal Perkins »

Federal Perkins Loan

The Federal Perkins loan is available to undergraduate students.

The Federal Perkins loan is awarded to students who demonstrate exceptional financial need. IIT strongly encourages all students who wish to be considered for the Federal Perkins to submit the FAFSA to the U.S. Department of Education by the April 15 deadline. These funds are limited and awarded on a first come, first serve basis. The interest rate of the Federal Perkins Loan is 5 percent. Interest will begin to accrue nine months after a borrower ceases to be enrolled at halftime.

For borrowers of Federal Perkins, the Student Loan Office generates Institutional Promissory Notes, which are different from Master Promissory Notes. At the beginning of each academic year, borrowers must sign Institutional Promissory Notes before loan money can be credited to the student's account. Students can sign these promissory notes at the Bursar Office, 207 Main Building.

The Federal Perkins Loan Master Promissory Note "Terms and Conditions" will provide you with detailed information regarding your rights and responsibilities. You should familiarize yourself with all the terms and conditions of your MPN including, but not limited to, the following:

1. Use of Loan Funds: You may only use our loan funds to pay educational expenses at the institution that certified your loan eligibility. Your decision to accept or decline the Perkins Loan will not effect your eligibility for other forms of assistance that you may have been offered.
2. Repayment: Repayment and accrual of interest at an annual rate of five (5%) percent will begin following the expiration of your 9 month grace period. All payments are to be sent to the Illinois Institute of Technology, Bursar Office, 3300 S. Federal Street, Room 207, Chicago, IL 60616. You must repay the full loan amount, and all interest and fees generally within ten (10) years. You must pay back your student loan, even if you do not graduate, you do not get a job or your education did not meet your expectations. You may prepay this loan, make loan payments before they are required, or in amounts that are greater than required, at any time without penalty. There is a Department of Defense repayment program available for specified military service.
3. Loan Limits: The annual maximum Perkins Loan that an eligible undergraduate student may borrow is $2000.00. This limitation is due to funding. The aggregate unpaid principal amount received by an undergraduate student may not exceed $27,500.
4. Loan Fees: There are no loan fees associated with originating or disbursing the Federal Perkins Loan.
5. Enrollment Status: If you do not maintain an enrollment status of at least half time, your loan will enter repayment. A half time student is defined as an enrolled student who is carrying a half time academic workload, as determined by the institution which amounts to at least half of the workload of the applicable minimum requirement of a full time student. At the Illinois Institute of Technology, half-time is defined as 6 credit hours per semester for undergraduate students. If you plan to withdraw prior to the program completion, you must notify the Student Loan Office so exit counseling can be provided.
6. Credit Bureau Notification: Your loan will be reported to one or more national credit bureaus on a monthly basis. Information will include the disbursement date, amount and repayment status of your loan.
7. Default: Your loan will be considered in default after one missed payment, at which time late fees will be assessed and the delinquency reported to the national credit bureaus. In addition, your defaulted loan may be subject to a referral to a collection agency, litigation, referral to DOE for collection, a federal tax offset and a hold will be placed on your records resulting in transcripts being withheld and future registration at the Illinois Institute of Technology denied.
8. Deferment/Forbearance: If you are unable to make payments as scheduled, it may be possible to delay or temporarily decrease your payments under certain circumstances. Contact the Bursar Office for more information.
9. Consolidation: Eligible education loans can be consolidated into a single monthly payment for a term of up to 30 years. Disadvantages to consider are an increase in total interest paid over the extended number of years and the loss of certain deferment, forbearance and cancellation provisions that exist on your loan.
10. Collection Fees: A late payment fee may be charged for each individual scheduled payment that is missed at a rate not to exceed twenty percent (20%) of each past-due scheduled payment. If your delinquent account is referred to a collection agency or attorney for litigation, you will be responsible to repay the entire resulting penalty, collection and litigation costs.
11. National Student Loan Data System (NSLDS): NSLDS is the U.S. Department of Education's central database for student aid. NSLDS provides you with a centralized, integrated view of all of your Title IV loans and grants. You may view your loans on NSLDS at any time by logging onto http://www.nslds.ed.gov. If you do not have access to the Internet, you may phone (800)4-FED-AID.