Federal Perkins Loan

What is a Federal Perkins Loan?

Federal Perkins Loans are offered to undergraduate and graduate students who demonstrate financial need. Since the Federal government provides limited funds, and they are administered through UTPA, previous borrowers are awarded first. The remaining funds are then awarded on the first come, first serve basis. Students can receive up to $4,000, but depends on financial need and on other aid awarded for the semester.

How do I receive a Federal Perkins Loan?

Students who have never received a Federal Perkins Loan must request it by completing an "Additional Financial Aid Request Form" at http://finaid.utpa.edu. If approved, a notification letter is mailed to the student requesting the completion of an on-line Pre-loan Counseling Session (EC) and sign a Master Promissory Note (MPN). 

• Section I - The MPN is a PDF form, which is user-friendly, to allow completion online. The data typed on this form cannot be saved, therefore print the completed MPN and submit to our office. A copy may also be printed for your records.
• Enter your Permanent Address on both the Pre-Loan Counseling and Master Promissory Note: P.O. Box address are not acceptable. Your permanent address should be the same one that you have on file at UTPA
•  Verify your Date of Birth and Social Security Number before submitting both Entrance Counseling confirmation and Master Promissory Note 

Note: If an option to submit electronically is available, the wrong documents were completed.

A Perkins Exit Counseling Session. must be completed once a student is no longer enrolled at least on a helftime basis.

A Federal Perkins Loan is a subsidized loan with a 5% fixed interest rate that has a nine-month grace period. Repayment phase begins nine months after students fail to be enrolled at least a halftime or graduates whichever comes first.

Now that I have been awarded a Federal Perkins Loan, What is my next step?

Students awarded a Federal Perkins Loan must complete and sign a Pre-loan Counseling Session (EC) and sign a Master Promissory Note (MPN). Once, completed, print and bring them to the Financial Aid Office. This is a necessary step prior to deisbursing funds. 

Cancelation of Federal Perkins Loan:

What does this mean?

This means that under certain conditions, a Federal Perkins loan can be canceled. Up to 100% of the outstanding loan, principal balance maybe canceled for different types of public service.

Educational Cancelation:

The following three types of teaching positions, can reduced the loan by 15% for the first and second year, 20% the third and fourth year, and 30% the fifth year.

• Full-time teacher in a public or nonprofit elementary or secondary school designated by the Secretary of Education as having a high concentration of low-income students, and in which 30% of the school’s enrollment is Title I children, according to the list published annually in the Federal Register.
• Full-time special education teacher, including teacher of infants, toddlers, children and youth with disabilities in a public or nonprofit elementary or secondary school system.
• Teacher in a field of expertise such as mathematics, science, foreign languages, bilingual educator or other fields where the state education agency determines there is a shortage of qualified teachers.

Law Enforcement Cancelation:

If employed in a Law Enforcement field up to 100% of the outstanding loan principal balance maybe canceled for the following four types of employment services, at the rate of 15% the first and second year, 20% the third and fourth year, and 30% the fifth year.

• Be employed as a law enforcement or corrections officer for 12 consecutive months in an eligible local, state or federal agency. The agency must be publicly funded and its principal activity must pertain to crime prevention, control, or reduction or enforcement of criminal law, and principal responsibilities are unique to the criminal justice system.
• Be Full-time as a nurse or medical technician providing health care services for 12 consecutive months. A medical technician is an allied health professional (working in fields such as therapy, dental hygiene, medical technology or nutrition) who is certified, registered, or licensed by the appropriate State Agency. An allied health professional is someone who assists, facilitates, or complements the work of physicians and other specialist in the health care system.
• Providing or supervising the provision of services to high-risk children from low-income communities and families of such children, and working full-time in a public or private nonprofit child or family service agency for 12 consecutive months.
• Qualified professional provider of early intervention services working full-time for 12 consecutive months in a public or other nonprofit program authorized in Section 676 (b) (9) of the Individuals with Disabilities Education Act.

Service Cancelations

If employed in certain filed under the federal government the loan can be canceled up to 100% of the outstanding loan principal balance maybe canceled for the following four types of employment services, at the rate of 15% the first and second year, 20% the third and fourth year, and 30% the fifth year.

• If on active duty service in a military in an area of hostility that qualifies for special pay under Section 310 of Title 37 of the U.S. code up to 50% of the outstanding loan principal balance may be cancelled at the rate of 12½% for each year of qualifying service.
• If on volunteer service under the Peace Corps Act or Domestic Volunteer Service Act of 1973 (VISTA) up to 70% of the outstanding loan principal balance may be cancelled, at the rate of 15% for the first two years of service, and 20% for the third and fourth year.
• Full-time service in a Head Start program carried out under the Head Start Act (formerly under the Economic Opportunity Act of 1964), and operated for a complete academic year or its equivalent. The applicant must be a full-time educator staff member, and not earn more than comparable employees working in the local educational agency (Validation must be attached). Up to 100% of the outstanding loan, principal balance may be canceled, at the rate of 15% for each year of service.

For the most current information and the rights and responsibilities regarding the Federal Perkins Loan refer to the Master Promissory note.