Federal Perkins Loan is a low interest (5%) loan awarded by CUNY to help meet student's educational expenses. A Federal Perkins Loan is money that is borrowed and must be repaid with interest. It is not a grant. To receive a Perkins Loan, a student must meet the Student Eligibility requirements for federal financial aid.

Application Process:

To be considered for a Federal Perkins Loan, a student must complete the Free Application for Federal Student Aid (FAFSA). File early to be considered. How to Apply?

Award Amount:

Unlike the Federal Direct Loan Program, a student cannot request to borrow a specific amount of money in Federal Perkins Loan. The amount awarded will be determined by CUNY based on a student financial need and the amount of money available for the program. The annual maximum amount awarded is $2000.00.

Eligibility Requirements:

• A student must register for and maintain an enrollment status of half-time (6 credits or equated credits) or greater to be eligible to receive Federal Perkins Loan. If, for any reason, a student course load falls below half-time, payments of the loan will be stopped.
• A student must be enrolled in a degree program at Bronx Community College.
• A student must have earned 28 or more degree credits to be eligible to receive a Federal Perkins Loan.
  Note: A freshman student is not eligible for a Federal Perkins Loan

Loan Disbursement:

• Before picking up a loan check, a student must complete the online Perkins Loan Entrance Counseling. During entrance counseling a student will be advised of their rights and responsibilities as a student borrower.
• A student must sign a promissory note. A promissory note is a binding legal document that lists the terms and conditions under which you are borrowing and agreeing to pay back the money. Financial Aid Disbursement Schedule

Repaying a Loan:

• Before graduation, a student must complete an online Perkins Loan Exit Counseling Session to review their financial responsibilities and learn about the repayment agreement. The Perkins Loan Coordinator will contact a student about the exit counseling session.
• Repayment begins nine months after a student graduates, withdraws from college or falls below six credits.
• A student may be allowed up to 10 years to fully repay a Federal Perkins Loan.
• Depending on the amount borrowed, minimum payment is $40.00 per month.

Postpone Repaying a Loan:

• If for any extraordinary reason such as illness or unemployment, a student cannot meet the terms of the repayment agreement, contact the College's Federal Perkins Loan Coordinator to make other arrangements.
• Under some circumstances, a student may be granted forbearance and be allowed to make payments of a lesser amount or may qualify for a deferment. A student must apply in writing and must continue to make regular payments until the request is granted. To qualify for either forbearance or a deferment, your loan must not be in default.
• Check the Student Loan Deferment and Cancellation Summaries for more information.

Trouble Making Payments:

• A student may go into default. Defaulting on a Perkins Loan can have serious financial consequences.
• A student can be charged all interest plus late payment fees, court fees and collection costs.
• A student can be reported to credit bureaus and have their credit rating affected.
• The IRS may withhold your income tax refund and apply it to your loan balance.
• Up to 15% of your wages can be garnisheed to collect the debt.
• A student school records will be impounded, and will be prohibited from registering at any CUNY college and will not receive any additional federal aid until the default status is rescinded.
• To learn more information visit CUNY Federal Loan Default

The Federal Direct Loan Program provides federally insured, low-interest, long-term loans to help you or your parents cover the costs of attending college. The federal government is your lender, not a bank or other lending institution. The loans are made directly to you or your parents through the college. The college determines your eligibility, calculates the loan amount, and disburses the money. Once the loan is made, it is managed and collected by the U.S. Department of Education. Your direct loan is money that is borrowed and must be repaid with interest after you leave school.

Application Procedures:

A student is required to first file a FAFSA. How to Apply?

Eligibility Requirements:

• Be a U.S. Citizen or permanent resident alien
• Be enrolled in a degree program at Bronx Community College
• Be enrolled half-time (6 units) in the semester

Loan Disbursement:

Before picking up a loan check, a student must complete Direct Loan Entrance and Exit Counseling. A student must sign a Direct Loan Master Promissory Note. A promissory note is a binding legal document that lists the terms and conditions under which you are borrowing and agreeing to pay back the money. Financial Aid Disbursement Schedule. .

Federal Direct Subsidized Loan:

• Eligibility for this loan is based on the information you provided on your FAFSA. The federal government pays the interest on the loan while you are in school and during other deferment periods.
• Direct Subsidized loans first disbursed on or after July 1, 2006 have a fixed interest rate for the life of the loan.
• Interest rates for Direct Subsidized Loans for undergraduate borrowers have a fixed interest rate as follows: If first disbursed on or after July 1, 2012 - 6.8%.
• Direct Subsidized loans first disbursed before July 1, 2006 have a variable interest rate. The interest rate on these variable rate loans is changed on July 1st of each year.
• The interest rate on Direct Subsidized Loans is determined using the 91-day Treasury bill rate that was auctioned before June 1st and adding a certain fixed percentage to it.

Federal Direct Unsubsidized Loan:

• Allows you to borrow money in addition to any subsidized loan amounts for which you may be eligible. You will be charged interest from the time an unsubsidized loan is disbursed until you pay the loan in full.
• All Direct Unsubsidized Loans first disbursed on or after July 1, 2006 have a fixed interest rate for the life of the loan.
• All Direct Unsubsidized Loans first disbursed before July 1, 2006 have a variable interest rate. The interest rate on these variable rate loans is changed on July 1st of each year.
• The interest rate on Direct Unsubsidized Loans is determined using the 91-day Treasury bill rate that was auctioned before June 1st and adding a certain fixed percentage to it.

Federal Direct PLUS Loan:

• Direct PLUS Loan allows the parents of dependent students to borrow up to the cost of attendance at the college. The federal government charges your parent's interest from the date of the first disbursement until the loan is paid in full.
• Direct PLUS loans first disbursed before July 1, 2006 have a variable interest rate. The interest rate on these variable rate loans is changed on July 1st of each year.
• Direct PLUS loans first disbursed on or after July 1, 2006 have a fixed interest rate for the life of the loan.
• The interest rate on Direct PLUS Loans is determined by using either the weekly average of the 1-year constant maturity yield published by the Federal Reserve on or before June 26 or the 91-day Treasury bill rate that was auctioned before June 1st.
• Direct PLUS Loans that were disbursed before July 1, 1998 use the weekly average of the 1-year constant maturity yield.
• Direct PLUS Loans that were disbursed on or after July 1, 1998 use the 91-day Treasury bill rate.

Federal Direct Consolidation Loan:

• Federal Direct Consolidation Loan allows you to combine loans borrowed from different federal loan programs into one new loan with a new (possibly lower) interest rate and repayment schedule.
• Consolidation Loans disbursed under the Direct Loan Program can have either a fixed or variable interest rate depending on when the application was received.