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Perkins Student Loan

Federal Perkins Loan Overview:

The US Department of Education gives a specified amount of money to each college or university. These colleges and university then give out the money in what is called a Perkins Loan.

Eligibility:

In order to receive the Federal Perkins loan, students must meet certain requirements. Among these are: being a US citizen or permanent resident, attending school at least part time and enrolling in an accredited degree program.

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 a 5% interest rate. That's even lower than the Stafford student loan! Plus, the federal government pays the interest while the student is in school and during a 9-month grace period after graduation.

How to Apply:

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. Whether or not the student receives a Perkins loan will be based on when they applied for the loan, their school's funding capacity, and their level of need. Their school will determine which students have the greatest needs.

Once a student is granted the loan, they must maintain it. In order to do this the student must show satisfactory academic progress.

How Much Can I Borrow?:

The amount of money students can be given is based upon different factors. However, undergraduates can borrow up to $4,000 a year and $20,000 altogether. Graduates are permitted to borrow up to $6,000 per year and no more than $40,000 altogether. This includes any undergraduate loans they may still have.

After You've Been Granted a Loan:

Once you have been given a Perkins Loan, you'll either receive a check in the mail from your school or you'll notice that credits have been added to your school account. Your school will typically make two installments per academic year.

You will not be charged any extra fees for the Perkins Loan unless you pay late, miss payments, or only give partial payments.

To sum up, the Federal Perkins loan is a low interest rate loan given to student through their individual colleges or universities. Undergraduates can borrow up to $4,000 per year and no interest is paid until 9 months after the student has graduated.