Q: What is a Federal Perkins Loan?

A: Federal Perkins Loans are low-interest (5 percent) loans for eligible undergraduate and graduate/professional students with significant financial need. Undergraduate students may borrow up to $4,000 per year for a total of $20,000. Graduate or professional students may borrow up to $6,000 per year for a total of $40,000. (This total includes Federal Perkins Loans you borrowed as an undergraduate student.) Students can find out if they qualify by completing a FAFSA application.

Aug. 22, 2005.