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.  As of October 1, 2017, the Federal Government has ended this program and we are no longer permitted to make new Federal Perkins Loans. Highlights of the 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