<Tr> <Th> Loan products </Th> </Tr> <Tr> <Td> Perkins Stafford PLUS Consolidation Loans Private student loans </Td> </Tr> <P> A Federal Perkins Loan, or Perkins Loan, is a need - based student loan offered by the U.S. Department of Education to assist American college students in funding their post-secondary education . The program is named after Carl D. Perkins, a former member of the U.S. House of Representatives from Kentucky . </P> <P> Perkins Loans carry a fixed interest rate of 5% for the duration of the ten - year repayment period . The Perkins Loan Program has a nine - month grace period, so that borrowers begin repayment in the tenth month upon graduating, falling below half - time status, or withdrawing from their college or university . Because the Perkins Loan is subsidized by the government, interest does not begin to accrue until the borrower begins to repay the loan . As of the 2009 - 2010 academic year, the loan limits for undergraduates are $5,500 per year with a lifetime maximum loan of $27,500 . For graduate students, the limit is $8,000 per year with a lifetime limit of $60,000 (including undergraduate loans). </P>

What type of loan is the perkins loan