Perkins Loans are federal student loans. The funds are allocated directly to colleges to lend to students. Students with high need are awarded this loan as part of their award packages. The funds allocated to Hampshire College are very limited, and priority is given to students with high need in their third or fourth years of enrollment. The annual loan limit is $4,000, with an aggregate of $20,000 for undergraduate education. The loan will be credited directly to the student's Hampshire College account each term after the promissory note is signed.
Repayment of principal and interest on a Perkins loan is deferred during the nine month grace period after the student graduates or ceases to be enrolled at least half time, whichever occurs first. The interest rate is five percent on the unpaid balance. Previous borrowers continue under the provisions of their first Federal Perkins or National Direct Student Loan.
The repayment period extends up to ten years and depends on the amount of debt, but the minimum repayment is $40 per month. Repayment of principal and interest is deferred while the student is enrolled at least half-time; enrolled and attending a graduate fellowship program; engaged in graduate or postgraduate fellowship supported study (such as Fulbright) outside the U.S.; enrolled in an approved rehabilitation training program for disabled individuals; seeking and unable to find full-time employment; suffering an economic hardship; or engaged in services that qualify for cancellation of the loan. Previous borrowers continue under the deferment provisions of their first Federal Perkins Loan or National Direct Loan.
First-time Perkins loan borrowers must make an appointment with the Perkins loan coordinator in the business office. The Perkins loan coordinator conducts individual entrance and exit counseling sessions.
There are cancellation provisions for Perkins Loan borrowers who become:
Cancellation rates are 15 percent for first or second year of service, 20 percent for third or fourth year of service, and 30 percent for fifth year of service. The Head Start service cancellation is 15 percent for each complete year of service. Requests for deferments or cancellations should be directed to Hampshire's Perkins loan coordinator or our Perkins loan servicing agent.
Any questions regarding Perkins loan repayment, loan cancellations, or deferments should be directed to Hampshire's Perkins loan coordinator, at 413.559.5497.