Definition: Perkins loans are given to students who show that they have financial need (by filling out the FAFSA). Here are some of the details:
Interest: 5% (fixed for the life of the loan)
Undergraduate limit: $4,000 per year to $20,000 maximum.
Graduate limit: $6,000 per year to $40,000 maximum.
Repayment term: up to 10 years
Minimum monthly payment: $40
Advice: Perkins Loans are great ways to finance your college education. Because the interest rate is fixed, you don't need to worry about changes in interest rate. However, at times these loans can be unattractive if other loans are offering lower rates.