Federal Perkins Loan
Funds for this Federal loan program are lent directly by Luther College to students demonstrating a high level of financial need as determined by completion of the FAFSA. Highlights of this program include:
- Eligibility is outlined on financial aid award
- Borrowed in student's name
- Based on "exceptional" financial need
- Completion of a Master Promissory Note and a loan information sheet is required before disbursement of the first loan
- No interest accrues while while the student is enrolled at least half-time and during a nine month grace period following the enrollment period
- No origination fee
- Interest rate is fixed at 5%
- Repayment begins 10 months after the student graduates or drops below half-time status
- Possible cancellation benefits for full-time employees in certain fields