Federal Perkins Loan Disclosures

The Federal Perkins Loan Program Extension Act of 2015 allows schools to make Perkins Loans to undergraduate students through September 30, 2017. (If an eligible undergraduate student borrower receives a disbursement of a Perkins Loan after June 30, 2017, and before October 1, 2017 for the 2017-2018 award year the student may receive any subsequent disbursements of that Perkins Loan.) The Perkins Loan Program is set to expire after this time; however, programs are always subject to new legislation. Click here for more information.

Federal Loan Interest Rates

Loans first disbursed on or after 7/1/17 and before 7/1/18

Perkins Loans have a fixed interest rate of 5% regardless of the first disbursement date.

Direct Loan interest rates are calculated each year based on the 10-year Treasury Bill rate plus 2.05% and is capped at 8.25%. Direct Loans made during that year keep that interest rate for the life of the loan (unless it is consolidated with other loans).

View the latest interest rate information at https://studentaid.ed.gov/sa/types/loans/interest-rates

Repayment and Forgiveness Benefits

Repayment and forgiveness benefits available to Direct Loan borrowers are not available to Perkins Loan borrowers. The repayment period for a Perkins Loan is 10 years. Direct Loans provide several repayment options including plans that base your payment on your income. These repayment options are not available under the Perkins Loan Program.

Forgiveness benefits provided under the Direct Loan Program are not available under the Perkins Loan Program. However, the Perkins Loan Program does have its own cancellation provisions.

General repayment and forgiveness information is available at https://studentaid.ed.gov/sa/repay-loans.

Consolidation Option for Perkins Loan

You may consolidate your Perkins Loan with your other Federal student loans. The benefit to this is a single monthly payment instead of multiple payments to multiple servicers.

By consolidating, you may also have access to additional repayment plans. The income-driven repayment plans, which are not available under the Perkins Loan Program, may make your student loan debt more manageable by possibly reducing your monthly payment amount. However, by extending the repayment period, you will likely be paying more interest over time.

Interest Rate Comparison and Maximum Annual Borrowing Limit for Direct Loans

Federal loan interest rates are listed above. Borrowers should be aware of the maximum annual borrowing limit for the Direct Subsidized and Unsubsidized Stafford Loans in addition to the aggregate limits. This information can be found at

https://studentaid.ed.gov/sa/types/loans/subsidized-unsubsidized.

Averett University has awarded your maximum annual Direct Subsidized and/or Unsubsidized Loan limit before offering any Perkins Loan. Any undergraduate student who was awarded a Direct Subsidized Loan and/or a Direct Unsubsidized Loan can decline one or both of the loans (or request a lesser amount). However, the Direct Loan eligibility amounts must be included in the calculation of the Perkins Loan amount for undergraduate students, regardless of whether you actually borrow that full amount.