The Federal Perkins Loan is a need based, long-term, low-interest,
fixed rate loan for undergraduate and graduate students. This loan is partially funded
by the federal government and by NAU. NAU is considered the lender and
administrator of this loan program. This is a Title IV program which means
it is governed by the federal regulations set by the Department of
The Federal Perkins Loan must be repaid. When the
borrowers repay the loan, the money goes directly back into the Perkins Loan
Fund. The monies are then redistributed to current students as new Perkins
loans. The Perkins Loan is available to both undergraduate and graduate
students and is awarded by the Office of Scholarships and Financial Aid on the basis of
Interest rate and repayment terms
Perkins loans have a 0% interest rate while you are enrolled
in college at least half time, and during a nine month grace period after you
leave school. Repayment begins at the end of the grace period and lasts
for a period of 10 years, during which interest is charged at 5%. You can
apply for a deferment if you enroll in graduate school, become unemployed, or
meet other conditions specified on your promissory note.
If awarded a Perkins loan by the Office of Student Financial
Aid, you must complete two steps in order to receive the loan:
- sign a Master Promissory Note (MPN)
- complete Entrance Counseling online
The steps for completing the MPN and entrance counseling are
available to students on their LOUIE To Do list. Please allow a 24-hour
period between signing the MPN and completing the entrance counseling for LOUIE
to update your To Do List. Please email Perkins@nau.edu
with any questions regarding this process. You will not receive the
Perkins Loan without completing these steps.
Federal regulations require that all Perkins borrowers
complete an exit interview if any of the following occur:
- Student graduates from NAU.
- Student drops below six credit hours for fall or
- Student withdraws from NAU at any time.
- Student transfers to another university or
Graduate students who drop below six credit hours and are
enrolled in thesis or dissertation coursework will have their Perkins loan
deferred. Failure to complete an exit interview will result in a hold
being placed on our transcript records and your diploma. To start Exit
Counseling, go to Perkins Exit Counseling.
After completing exit counseling, you will receive
information about your particular loan, along with a loan disclosure statement,
which you must sign and return.
NOTE: Exit counseling required for the Perkins Loan is
separate from the exit counseling required for Federal Direct Loans (Subsidized
and Unsubsidized Stafford Loans).
Please forward any questions regarding exit counseling or
loan repayment via email to: Perkins@nau.edu.
For more information, visit Perkins Loan Repayment on the Student and
Departmental Account Services website.