The Federal Perkins Loan is a low-interest option available to students with demonstrated financial need.
Federal Perkins Loans are low-interest (5%) loans issued from the school to undergraduate and graduate students who demonstrate exceptional financial need. The loans are made with government funds, with a share contributed by the school. Repayments are made to Touro College.
Loan amounts vary according to financial need and the availability of funds. Touro students are currently permitted to borrow up to $1,000 for each year of study.
To apply for a Federal Perkins Loan, fill out your FAFSA on or after January 1.
The total outstanding debt for undergraduate borrowers is $20,000 for those who have completed two years of undergraduate work and $8,000 for those who have not. The total outstanding debt for graduate and professional students is $40,000, which includes any Federal Perkins Loans borrowed as an undergraduate.
Borrowers must sign promissory notes agreeing to repay their loans. There is a six-month grace period given to borrowers after they graduate, leave school, or drop below half-time (6 credits). Borrowers are allowed up to ten years to repay their loans, with repayment beginning at the end of the grace period. Monthly payment amounts are determined by the size of the debt and the length of the repayment period.
Late Payments and Forebearance
Borrowers who fail to keep up with their repayment schedules must pay late charges and collection costs until payments are current. Under certain circumstances, borrowers may receive a deferment or forbearance on their loans or may qualify for partial or complete cancellation of their loans.
If you are having temporary problems repaying your federal student loans, contact your loan servicer to see if you are eligible for deferment. A deferment allows you to temporarily stop making payments on your federal student loans. If you have Direct Subsidized Loans, you are not charged interest on those loans during deferment. You are never charged a fee for applying for a deferment on your federal student loans. Note: interest will continue to be charged during deferment on your Direct or FFEL Unsubsidized and PLUS Loans. If you do not pay this interest during the deferment, it will be capitalized at the end of the deferment
If you are having temporary problems repaying your federal student loans and are not eligible for a deferment, contact your loan servicer to see if you are eligible for forbearance. A forbearance is another method of temporarily postponing or reducing loan payments. You are never changed a fee for applying for a forbearance on your federal student loans.
You may be granted a forbearance if you meet one of the following requirements:
- You are unable to make your scheduled loan payments for reasons including, but not limited to, financial hardship and illness.
- You are serving in a medical or dental internship or resi¬dency program and you meet specific requirements
- The total amount you owe each month for all of the Title IV student loans you received is 20% or more of your total monthly gross income (for a maximum of three years)
- You are serving in an approved AmeriCorps position.
- You are performing a teaching service that would qualify for loan forgiveness under the requirements of the Teacher Loan Forgiveness Program
- You qualify for partial repayment of your loans under the Student Loan Repayment Program, as administered by the Department of Defense
- You are called to active duty in the U.S. armed forces.
Note: Interest will continue to be charged during a forbearance on all types of loans. If you do not pay this interest, it will be capitalized at the end of the forbearance
For more information on any of the above, students are advised to contact the Financial Aid Office.