Perkins Loans
A Perkins loan is a federal, need-based, loan program for undergraduate and graduate students with a low interest rate of 5%. Students can borrow up to $5,500 per year for undergraduates and $8,000 per year for graduate students to pay their cost of education. Money received through the Perkins program must be repaid. Repayment on a Perkins loan is made to the school and begins after a nine-month grace period, which starts after graduation or a drop in enrollment below half time. These loans are awarded directly from participating college campuses. Students must submit the FAFSA to apply for the federal Perkins loan.

Alternative or Private Loans
Some students will not be able to obtain enough funds through the federal program to pay for their expenses at their chosen school. In such a situation, you may choose to go to a less expensive school or obtain an alternative or private loan. These loans have higher interest rates, require good credit scores or co-signers, require immediate repayment and may have other requirements that make them more costly. For these reasons, OSLA encourages students to use all available federal loan options before obtaining private or alternative loans.