Frequently Asked Questions (FAQ)

What is the Interest Rate on a Perkins Loan?

A Perkins loan has a low interest rate of 5%.

How much may a student borrow on a Perkins Loan? Total amounts available are:

  • $4,000 for each year of undergraduate study. Total accumulated debt is $20,000.
  • $6,000 for each year of graduate study. Total accumulated debt of $40,000.
    Loans depend on availability of funds at St. Thomas. We currently are not lending to graduate students.

When does my loan enter repayment?

You will receive a nine month grace period and payments will begin 10 months after you graduate or cease to be enrolled at least half time. Payments are monthly.

What is a grace period?

A "grace period" is the period of time before the borrower must begin repayments. No interest accrues, no payments are due and no billing occurs for the loan.

When does interest accrue?

Interest accrues for thirty days prior to a payment coming due.

Do I Have to Pay Interest While I’m in School?

No, interest does not accrue while you remain at least a half-time student and are deferred

What Happens When I Leave St. Thomas?

You will need to complete an exit interview. At the interview you will be given information about how your grace period works, how the billing works, your rights, your responsibilities, how much you owe, when payments will begin and how much your payments will be. It will be mandatory that you complete this interview.

What are My Rights as a Borrower?

  • To repay all or part of the loan(s) without penalty at any time.
  • A grace period after graduation or discontinuing education.
  • Deferment of payment, if eligible.
  • Partial/full cancellation of loan, if eligible.

What are My Responsibilities as a Borrower?

  • To make payments on time.
  • To notify the Perkins Loan Office if a payment cannot be made by the due date.
  • To notify the Perkins Loan Office of changes in your name, address, phone number or social security number.
  • To file appropriate forms, such as deferment or cancellation, in a timely manner.
  • To understand that failure to repay your student loan will have serious consequences, as required by the Department of Education:
  1. Referral to a collection agency.
  2. Report the past due status of your loan to a national credit bureau.
  3. Loss of eligibility for deferment or cancellation benefits.
  4. Loss of eligibility for further Federal financial aid.
  5. Hold will be placed on registration and academic transcripts.

If I Have a Question About My Loan, Who Do I Call?

For more information, check out the links on the right or contact the University of St. Thomas Federal Perkins Loan Office at (651)962-6610, or 1-800-328-6819 ext. 26610, or by fax at (651) 962-6630.