Perkins Loans: Frequently Asked Questions
What is a Perkins Loan?
A Perkins Loan - one of several types of federal educational assistance loans - helps pay the education costs of students with exceptional financial need. At Holy Cross, Perkins Loans are made up of a combination of Holy Cross and federal government funds. Holy Cross is the lender, and the loans are managed by Holy Cross and Campus Partners, an agency with which the College contracts to service the loan.
What is the interest rate on a Perkins Loan?
Perkins Loans offer a low interest rate -- just five percent simple interest.
Will I be charged a fee for a Perkins Loan?
There is no fee for taking a Perkins Loan. However, if you skip a payment, pay late or pay less than a full payment, you may have to pay a late charge plus any collection costs. Late charges will continue until your payments are current.
How will my loan be disbursed?
Holy Cross will credit your account in two payments during the academic year.
What if I need to cancel my loan?
Under certain conditions, you may have all or part of your loan cancelled. That means you will never have to repay the cancelled portion of the principal you borrowed or the accrued interest.
Because of the differences in loans from one student to another, as well as the complexity of eligibility requirements, information on Perkins Loan cancellation policies is quite extensive. For more details, please contact the Bursar's Office at 508-793-2521.
How soon must I begin to repay my Perkins Loan?
You have nine months after you graduate, leave Holy Cross or drop below half-time status before you must begin repayment. This is called a grace period. At the end of your grace period, you must begin repaying your loan. If you're attending less than half time, check with the Perkins Loan Coordinator to determine your grace period.
How long do I have to repay the loan in full?
You may be allowed up to 10 years to repay.
What is a deferment?
During a deferment, you are allowed to temporarily postpone payments on your loan, and no interest accrues. You might apply for a deferment, for instance, if you planned to attend graduate school or enter an organization such as the Peace Corps, or if you were unemployed for an extended period. For further details, see the Deferments and Forbearance section.
What is forbearance?
Forbearance is an alternative for borrowers not eligible for a deferment. During forbearance, your loan payments are postponed or reduced for a limited time. Interest continues to accrue. For further details, see the Deferments and Forbearance section.