However, unsubsidized students are required to either pay the interest while in school or to capitalize the accrued interest into a repayment schedule that starts after graduation. Federal Perkins Loan Program Perkins Loans are intended for students who demonstrate exceptional financial need. The interest rate is 5 percent, and no interest accrues until nine months after graduation. Repayment extends up to 15 years. The interest rate is variable, adjusted annually, not to exceed 9 percent.
Some lenders allow parents to pay only the interest rate while the student is in school.
The repayment period extends up to 10 years.