Are Perkins Loans Subsidized?

Q: Is the interest on Perkins Loans subsidized?

A: No the interest on Perkins Loans is not subsidized, but the interest rate is locked in at a low 5 percent for the life of the loan.

And unlike the Stafford Loan, Perkins Loans come with no additional fees. So all and all, the Perkins Loan is a great deal if you can qualify.

With Perkins, undergraduate students can receive up to $4,000 a year and a lifetime maximum of $20,000 as an undergraduate.

Graduate students can receive up to $6,000 a year and a lifetime maximum of $40,000, including any undergraduate loans.

The amount of Perkins Loan funds you will actually receive depends on your financial need, the amount of other aid you have received, and the availability of funds at school.

Each school participating in the Federal Perkins Loan program receives a certain amount of Perkins funds each year from the U.S. Department of Education.

When all available funds for that award year have been distributed, no more awards can be made for that year.

Submit your FAFSA early so you can be considered for these funds. Get started at

If you qualify for a Perkins Loan, your school will either pay you directly (usually by check) or credit your account. Generally, you will receive the loan in at least two payments during the academic year.

Student loan money must first be used to pay for your tuition, fees and room and board. If loan funds remain, you will receive them by check or in cash, unless you give the school written permission to hold the funds until later in the enrollment period.