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a federal Perkins loan or Perkins loan is the need-based student loan offered by the US Department of Education to assist American college students in funding their post-secondary education the program is named after Carl D Perkins a former member of the US House of Representatives from Kentucky perkins loans carry a fixed interest rate of 5% for the duration of the ten-year repayment period the Perkins loan program has a nine month grace period so that borrowers begin repayment in the tenth month upon graduating falling below halftime status or withdrawing from their college or university because the Perkins loan is subsidized by the government interest does not begin to accrue until the borrower begins to repay the loan as of the 2009 to 2010 academic year the loan limits for undergraduates are $5,500 per year with a lifetime maximum loan of 20 $7,500 for graduate students the limit is $8,000 per year with a lifetime limit of 60,000 dollars including undergraduate loans Perkins Loans


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