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 an electronic Master Promissory Note 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 five percent
  • Repayment begins 10 months after the student graduates or drops below half-time status
  • Possible repayment/cancellation benefits for full-time employees in certain fields