Suppose the borrower has been making monthly payments on Perkins

Loan #1. He takes out Perkins Loan #2 in September 1998. His next
payment on Loan #1 is due October 15. Therefore, he will begin repaying
Loan #2 at the same time. Remember that the repayment status of the
outstanding loan determines the repayment status of the second loan.

ATTENDING LESS THAN HALF TIME

(with outstanding loan)

Borrower making monthly

payments on Loan #1
on 15th of each month

Aug. 15, ’98 Sept. ’98: Oct. 15, ’98:

Borrower Payment is due
takes out on Loan #1 and
Federal Perkins payment begins
Loan #2 on Loan #2

A borrower who is attending less than half time and who has no out- Borrower
standing Perkins Loan or NDSL must begin repaying a new loan nine with no
months from the date the loan is made or nine months from the date the outstanding
borrower ceases to be enrolled as a regular student on at least a half-time loan(s)—
basis,1 whichever is earlier. 34CFR
674.32
For example, a student starts school full time in September 1998. She does
not have an outstanding Perkins Loan or NDSL. In January 1999, she
drops to one-quarter time. In March, she receives a Perkins Loan. Nine
months after the date the loan was made is December. Nine months after
the time she dropped below half-time enrollment is October, and this
nine-month period includes the date the loan was made. Because October
is earlier than December, she must begin repayment in October.

ATTENDING LESS THAN HALF TIME

(with no outstanding loan)

9 months

Sept. ’98: Jan. ’99: March ’99 October ’99:

Student starts Student Student Repayment
school full drops to receives begins
time–has no 1/4-time Federal
Federal Perkins Perkins
Loan or NDSL Loan

1 This nine-month period includes the date the loan was made.
Repayment 6-23