Federal Perkins Loans are low-interest loans offered to eligible students to help cover the costs of higher education. These loans are awarded based on financial need and are available to both undergraduate and graduate students attending participating colleges and universities. The interest rate for Federal Perkins Loans is fixed at 5%, and repayment typically begins nine months after graduation or when a student drops below half-time enrollment. The loans are administered by the school, which also determines the amount a student can borrow based on their financial situation and the school's funding availability.