Federal Perkins Loan Overview: The Federal government gives each college and university some money for Perkins loans. The college then gives out the loans and the students repay them straight to the college.
Eligibility: In order to receive the Federal Perkins loan, students must meet certain requirements. Among these requirements are: being a US citizen, attending school at least half time and enrolling at an accredited school.
Undergraduate and graduate students alike can apply for the Perkins Loan. The Perkins Loan is a wonderful option for students who are in great financial need because it only has an interest rate of 5%. In addition to that, the federal government pays all interest while the student is in school and during a 9-month grace period after graduation.
Applying: To apply for a Perkins Loan the student must submit a free application for Federal student aid (FAFSA). This can be done at FAFSA.com. The student may or may not receive the loan depending on the time in which they apply, their schools funding capacity, and their level of financial need. The individual schools will determine which students have the greatest needs.
Once a student is given a loan, they are obligated to maintain it. To do this the student has to show academic progress.
Borrowing Limitations: Undergraduates can borrow up to $4,000 per year and $20,000 altogether. Graduates can borrow no more than $6,000 per year and $40,000 altogether. This includes any undergraduate loans they may still have.
When You Have Been Given the Loan: After you are granted a Perkins Loan, your college or university will send you a check in the mail or directly deposit it into your school account. Your school will typically make two installments per academic year.
Youll never be charged fees for the Perkins Loan except in the case of late, missed, or partial payments.
To sum up, the Federal Perkins student loan is a low interest rate loan given to students through their individual colleges or universities. Undergraduates may borrow no more than $4,000 per year and no interest is paid by the student until 9 months after graduation.