<p>I have no experience with the Perkins Loan program, daughter was never offered one. However they are included in son's FA package. I understand they are a federal product, offered through the school, so he would pay the school back, or rather a loan servicer, and it looks like a 10 year repayment. But I can't find much more additional information. </p>
<p>So; is their a limit; yearly or total? Or is this up to the school. Son's package includes subsidized Stafford of $4500 and a subsidized Perkins of $3500. </p>
<p>Last year's package included a $3500 subsidized Stafford and a $3000 subsidized Perkins, however about 2 weeks before school got out there was an email saying he had been awarded FA and he needed to go in a accept it. When we looked, the total aid was the same, and nothing showed needing acceptance, so I called and what they had done was decrease his Perkins loan to $1500 and increased a grant by the same amount so it was a wash, and he didn't actually have to accept anything, it was just a computer generated notice. </p>
<p>They didn't go into any detail about why there were able to increase free money and take away a loan. I thought it was unusual to have an FA adjustment when the school year was basically over, but it's their money so I know they can do whatever they want with it. </p>
<p>But I certainly wouldn't expect that to happen again. So is there a limit on the Perkins. And is that amount included in the total yearly limit for undergrad direct loans? Or is it a completely different program? If it's different are any of the repayment options available through the direct loan program applicable to Perkins as well? </p>
<p>That's $8000 in loans for this year, though with the reduction in last years, it's a 2 year total of $13,000. I'm assuming they're going to go with full subsidized Stafford each year which will add another $11,000 to the total for the next two years. I'm attempting to get an idea of how much more the Perkins could add to the total and what he can do about it. </p>
<p>Perkins loan money is given to the schools by the federal government to award to students who they feel are low income in their student population. I personally have never heard of anyone getting a Perkins that exceeded $3500 for one year. Perkins loans have a nine month grace period, I think (or at least my daughter’s did). They are subsidized as you already know.</p>
<p>The Perkins doesn’t have the same amount limits like the Stafford (Direct) loans do. The Perkins amount is determined by the college for each student who is awarded a Perkins.</p>
<p>My son got a $4000 Perkins for next year - the limit is actually $5500/year for UG and $8K/year for graduate, with a max total of $27.5K for UG and $60K for grad.</p>
<p>Having said that, I believe thumper is right that schools rarely give out such large sums. And frankly, getting the Perkins replaced by a grant was a great deal for you. I was surprised my son got the Perkins at all since we are not especially needy (ie no Pell), but we’ll take it.</p>
<p>Colleges have a limited allocation of Perkins and they typically try to spread it around. It is possible that some colleges direct most of their Perkins loans to freshman students, because freshman are allowed less money in subsidized Stafford loans than upperclassmen. </p>
<p>Perkins operates like a revolving loan program. However, the federal law that authorizes it will expire at the end of the 2013-2014 school year. At that time, the Perkins money is supposed to be returned by colleges to the feds, as opposed to being used for new loans. Pres. Obama has proposed an expanded Perkins program that would direct more loan funds to the most cost-effective colleges that have the highest graduation rates and the most modest tuition, but he needs action from Congress for that to happen. It is possible that the entire Perkins program could disappear in mid-2014, or that it could become an unsubsidized loan program.</p>
<p>One source said the maximum annual Perkins loan is $4k. The undergrad stafford loans vary in their maximum loan amounts by the year of college.</p>
<p>charlieschm, well that’s disconcerting, even it’s the program is extended son’s college would hardly qualify as having modest tuition. However the school does have a commitment to making sure that freshmen who enter with need-based funding are able to actually graduate. So we’ll see. I’m hopefully next year, he wouldn’t even have to take the Perkins loan, even if it were offered. </p>
<p>kttmom, yes, I agree, it was great that they replaced the loan (for one semester at least) with a grant. They didn’t explain why, I don’t know if they wound up with un-awarded money or if they thought his performance his first semester earned it or what. They have an combination FA philosophy, which isn’t real clear. I mean it’s spelled out, it’s just somewhat murky as to what it actually means. Basically they say, need determines FA amount and merit determines the proportion of free money vs money that has to be paid back. So it’s possible they may increase some amounts I guess (at least, as long as he maintains the GPA it won’t go down). He didn’t do as well as he would have like or expected. He’s an engineering major and finished his 1st year with right at a 3.0 chemistry was his Achilles heel both semesters)</p>
<p>It’s hard to tell how the package changed because although his loan amounts went up a little, his work study dropped some and his free money also increased, because the COA went up. I guess I’d have figure the percentages and compare them to last year. But I’m not holding my breath for another loan to be replaced with free money. After all, lightning normally doesn’t strike twice.</p>