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A Federal Perkins Loan is a low-interest, (5%), loan for both undergraduate and graduate students with exceptional financial need demonstrated through completion of the Free Application for Federal Student Aid (FAFSA). Federal Perkins Loans are made through a school's financial aid office. Your school is your lender therefore you must repay the loan to your school. Undergraduate students can borrow up to $4,000 for each year of undergraduate study. The maximum for an undergraduate is $27,500. Graduate students can borrow up to $8,000 per year. The maximum for graduate students is $60,000, which includes amounts borrowed as an undergraduate. The amount you receive depends on when you apply; your financial need; and the funding level at the school. 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 repayment begins.