Federal Perkins Loans

The Federal Perkins Loan is a federally funded, need-based loan program that is administered by individual colleges and universities. UI&U is your lender under the Federal Perkins loan program. The interest rate is currently 5%, and no interest is charged while you are enrolled on at least a half-time basis and during your grace period. You must begin repayment of principal and interest nine months after you leave school.

At Union Institute & University, Federal Perkins Loans are usually awarded to learners who file their annual FAFSA before May 1st and demonstrate exceptional financial need. Federal Perkins Loan funding is limited to the amount collected in the previous award year.

Federal Perkins Loan Master Promissory Note (MPN) Required for First-Time Federal Perkins Loan Recipients

If you have been awarded a Federal Perkins Loan and are a first-time Federal Perkins Loan recipient at Union Institute & University you must complete a Federal Perkins Loan Master Promissory Note (MPN) and Federal Perkins Loan Contact form. If this applies to you, a Federal Perkins Loan MPN and Federal Perkins Loan Contact form will be enclosed with your award letter. You must complete, sign, and return these documents to our office before these funds can be disbursed to your student account. You may download and print the Federal Perkins Loan MPN and the Federal Perkins Loan Borrower Contact forms from our Web site. First-time and recurring Federal Perkins Loan recipients must return the Federal Perkins Loan Borrower Contact form to the Financial Aid Office with each new Federal Perkins Loan award.

Federal Perkins Loan Exit Interview Requirement

All Federal Perkins loan borrowers must complete a Perkins Loan exit interview when you leave school, drop below half-time status or do not register for a subsequent term. Our servicing agent for the Federal Perkins Loan program is University Accounting Service (UAS). UAS will send you an exit interview packet when you graduate, leave school or drop below half-time status. 

Federal Perkins Loan Cancellation

Some Perkins Loan borrowers may have all or part of their loans canceled if they:

• Teach in specific fields and/or in designated schools in low-income areas
• Work in Head Start programs
• work providing certain health care services
• serve as qualified professional providers of early intervention services
• work in child or family service agencies
• serve in the military during designated periods of national emergency
• perform volunteer services with the Peace Corps or ACTION programs
• serve as law enforcement or corrections officers

If a student’s loan is eligible for cancellation, a percentage of the loan will be canceled for each completed year of qualifying service or employment. More information on the Federal Perkins loan program is available on the Federal Student Aid Web site.