Federal Perkins Loans

Federal Perkins Loan (formerly National Direct Student Loans NSLDS) . A Federal Perkins Loan is a low-interest (5%) loan for students with exceptional financial need. The loans are made by Montgomery College with funds that are distributed by the Federal government. You must demonstrate financial need and be registered for at least half time enrollment to receive this loan.

You will not be charged a fee to borrow the loan and you do not have to pay it back until nine months after you graduate or drop below half time enrollment.

Repayment

Loan funds must be repaid, generally after attending college. Interest rates for educational loans may be lower than commercial interest rates. There are special loans for parents and independent students who are not eligible for grants.

When you accept the money from the loan, you are agreeing to repay the loan. If you fail to repay the loan under the terms of the promissory note, you will have defaulted on your loan. Defaulting on your student loan could damage your credit rating for a very long time.

The SFA Ombudsman is working with student loan borrowers to informally resolve loan disputes and problems with federal loans. Please call the Ombudsman (877) 557-2575 or visit the web site.