Federal Perkins Loans
What is a Federal Perkins Loan?
A Federal Perkins Loan is awarded to students with financial need who are enrolled at least half-time (six credits). Repeating courses may affect the student's eligibility for Title IV aid. (Ex: If a student repeats a previously passed course for a second time, those credits cannot be included in the student's enrollment status.) Title IV aid includes all federal programs.
How do I apply for a Perkins Loan?
Students who have completed a FAFSA by April 15 for the upcoming academic year are given priority consideration. Students accepting Perkins Loans are required to complete a Master Promissory Note and Personal Data Sheet. These forms are mailed to the student by the MSU Financial Aid Office. Also required is Perkins Loan Entrance Counseling which can be done at www.mappingyourfuture.org. All borrowers are required to complete loan counseling annually for any subsequent loans.
Who is the lender?
Minot State University is the lender and the loan is made with government funds. Perkins Loansprocessed by Minot State University are submitted to the National Student Loan Data System (NSLDS) and will be accessible by guaranty agencies, lenders, and schools determined to be authorized users of the data system.
What is the interest rate?
There is no interest charged as long as the borrower is enrolled in school at least half-time (six credits). Once the loan enters repayment, the interest rate is fixed at 5%.
How and when do I pay this loan back?
You have nine months after you graduate, leave school, or drop below half-time (six credits) before you must begin repayment. This is called your "grace period". Perkins Loans offered by MSU are serviced by the Student Loan Service Center in Fargo, ND.
Are there cancellation provisions for the Perkins Loan?
Yes. Borrowers who undertake certain public, military, medical, or teaching service employment may be eligible to have all or a part of their loans canceled. Contact the Student Loan Service Center for information on cancellation provisions.
What steps are necessary to process my Perkins Loan?
Borrowers of Federal Perkins Loans must:
- Master Promissory Note (MPN) - explains the terms and conditions of the loan and is your promise to repay the loan. Once you have accepted a Perkins Loan in your Campus Connection, a notice to complete an electronic MPN will appear within 24 hours on your "To Do List".
- Perkins Loan Entrance Counseling - must be completed each academic year you borrow a Perkins Loan.
Borrowers should also review the Perkins Loan Rights and Responsibilities.