Perkins Loan for Medical School

  • name: Perkins Loan
  • interest rate: 5%
  • interest type: subsidized
  • maximum repayment term: 10 years
  • grace period: 9 months
  • maximum loan amount: $8,000 per year ($60,000 total)

Advantages of Perkins

This loan is just as good as the Primary Care Loan, except that this is easier to qualify for. The interest rate is low and subsidized. You get 3 quarters of a year for grace period.

perkins loan - house

As of March 2012, the interest rate on a 30 year mortgage (loan for a house) is about 4%. The best rate medical students can get to fund their education is 5%. And if you’re lucky, you can get up to $8,000 per year for Perkins. Now you just have to find a way to get the remaining $52,000 for the school year.

Disadvantages of Perkins

The downside is that you can only get a maximum of $8,000 per school year and the loan total cannot exceed $60,000. Similar to the Primary Care Loan, this is a needs-based loan. You will most likely qualify as a poor medical student. And the financial status of your parents is not taken into consideration.

The unique aspect of this loan is that the people who receive it and the amount awarded are determined solely by the school. Based upon my FAFSA, I am poor. But I only received $3,500 for the school year.

You will need to complete the Perkins promissory note in order to receive a loan. It is basically just an extra piece of paper you have to fill out. Do it!

Who Should Take Out the Loan?

So who is it for? You! If you could get this loan, take it and run. (But make sure you pay it back eventually. It is a loan after all.) You are not restricted in terms of what field to practice in. It is like the Primary Care Loan, but without all the nasty contingencies. In my opinion, it is the best medical school loan you can get.

This article is part of the Medical School Loans series. Click on the link if you want more tips and hints about borrowing money smartly.

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