The Federal Perkins Loan program is available to needy undergraduate students. Federal Perkins loans are low-interest (currently 5%), long-term loans made through the Colorado Technical University financial aid office to help students pay for postsecondary education. The federal government allocates funds to participating schools. This is a limited pool of funds and the school will determine to whom and how much it will award based on federal guidelines. Often, due to limited funding, Federal Perkins Loans resources are exhausted early in the year. Loan repayment begins after the student graduates, withdraws from school or falls below half-time enrollment status and includes a 9 month grace period for first time Perkins borrowers.