Federal Perkins Loan (FPL)

A Federal Perkins Loan is a low-interest (5 percent) loan for both undergraduate and graduate students with exceptional financial need. Hostos Community College will be your lender. The Loan is made with the government funds with a share contributed by Hostos CC. You must repay this loan to Hostos Community College.

How much can I borrow?
Depending on when you apply, your level of need, and the funding level available, you can borrow up to:
  • $4,000 for each year of undergraduate study (the total amount you can borrow as an undergraduate is $20,000).
  • $6,000 for each year of graduate or professional study (the total amount you can borrow as a graduate/professional student is $40,000, including any Federal Perkins Loans you borrowed as an undergraduate).
How will I be paid?
Hostos Community College will either pay you directly (usually by check or Direct-Deposit) or credit your account. You will receive the loan in at least two payments during the year.

Is there a charge for this loan?
A Perkins Loan borrower is not charged any fees. However, if you skip a payment, make a payment late, or make less than a full payment, you may have to pay a late charge plus any collection costs. Late charges will continue until your payments are current.

How much will I have to repay each month?
Your monthly payment amount will depend on the size of your debt and the length of your repayment period. The chart below shows typical monthly payments and total interest charges for three different 5-percent loans over a 10-year period.
Total Loan Amount Number of Payments Approximate Montly Payment Total Interest Chargers Total Repaid
$4,000 120 $42.43 $1,091.01 $5,091.01
$5,000 120 $53.03 $1,364.03 $6,364.03
$15,000 120 $159.10 $4,091.73 $19,091.73

When do I pay back this loan?
If you’re attending school at least half time, you have nine months after you graduate, leave school, or drop below half-time status before you must begin repayment. This is called a grace period. If you’re attending less than half time, check the Bursar’s Office (Perkins Loans division) to determine your grace period. At the end of your grace period, you must begin repaying your loan. You may be allowed up to 10 years to repay.

Will I have an opportunity to cancel my loan after I sign the Promissory Note?
Yes. Hostos Community College will notify you in writing whenever it credits your account with your Perkins Loan funds. This notification will be sent to you no earlier than 30 days before, and no later than 30 days after Hostos CC credits your account. You may cancel all or a portion of your loan if you inform the Bursar’s Office (Perkins Loan division) at Hostos CC that you wish to do so within 14 days after the date that Hostos CC sends you this notice, or by the first day of the payment period, whichever is later. The Bursar’s Office can tell you the first day of your payment period. If you receive Perkins Loan funds directly by check, you may refuse the funds by not endorsing the check.

Can I postpone repayment of my FPL?
Yes. Under certain circumstances, you can receive a deferment or forbearance on your loan. During a deferment, you are allowed to temporarily postpone payments on your loan, and no interest accrues. You may receive a deferment under certain conditions, such as unemployment. Deferments are not automatic. You must apply for one through the Bursar's Office (Perkins Loans division) by using a deferment request form available at the Perkins Loans division.

If you are temporarily unable to meet your repayment schedule but are not eligible for a deferment, you can receive forbearance for a limited and specific period. During forbearance, your payments are postponed or reduced. Interest continues to accrue; you are responsible for it. Forbearance isn't automatic either. You may be granted forbearance in up to 12-month intervals for up to three years. You must apply in writing for forbearance through the Bursar's Office (Perkins Loans division) or the agency Hostos Community College employs to service your loan. You'll have to provide documentation to support your request for forbearance. You must continue making schedule payments until you are notified that deferment or forbearance has been granted.

Can my FPL be canceled?
Yes. If the borrower dies or becomes totally and permanently disabled, the loan can be canceled. A loan can also qualify for cancellation under certain other conditions--as long as the borrower is not in default. If you serve as an enlisted person in certain specialties of the U.S. Armed Forces may, as an enlisted incentive, repay a portion of your Federal Perkins Loan. Note that this is not a cancellation. If you think you qualify, contact your recruiting officer.