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Institutions use funds to make loans to needy, eligible students for meeting educational expenses. The maximum annual loan amount limit for an eligible student attending an institution is $6,000 for a graduate or professional student or $4,000 for undergraduates. The maximum aggregate loan amount for an eligible student attending an institution is $40,000 for a graduate or professional student, including loans borrowed as an undergraduate student, or $20,000 for a student who has successfully completed 2 years of a program of undergraduate study and $8,000 for any other student. For a program of study abroad that has reasonable costs in excess of the home costs, the annual and aggregate limits may be exceeded by 20 percent. An institution is entitled to an administrative cost allowance for an award year if it advances funds to students in that year under the Federal Perkins Loans Program, in an amount equal to five percent of the first $2,750,000 in expenditures, plus 4 percent for expenditures greater than $2,750,000 but less than $5,500,000, plus 3 percent for expenditures in excess of $5,500,000. |
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