Federal Perkins Student Loan
The Perkins Loan- A Low Rate Federal Loan
<b>What is the Perkins Loan?:</b> 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.
<b>Requirements:</b> In order to receive the Federal Perkins loan, students must meet certain requirements. Some of these are: being a United States citizen or permanent resident, attending school at least half time and enrolling at an accredited school.
Both graduates and undergraduates can apply for the Perkins Loan. The Perkins Loan only has an interest rate of 5%. Thats even lower than the Stafford student loan! Plus, the government pays the interest during the time in which the student is in school and also nine months after graduation.
<b>Applying:</b> To apply for a Perkins Loan the student must submit a free application for Federal student aid (FAFSA). FAFSA.com is a convenient place to do this. The student may or may not receive the loan depending on the time in which they apply, their colleges funding capacity, and their degree of need. The individual schools will determine which students have the greatest needs.
Once the student is given the loan, they are obligated to maintain it. In order to do this the student must show satisfactory academic progress.
<b>Borrowing Limitations:</b> If you are an undergraduate you can borrow up to $4,000 a year and $20,000 altogether. Graduates can borrow no more than $6,000 per year and no more than $40,000 altogether.
<b>When You Have Been Given the Loan:</b> Once you are granted a Perkins Loan, youll either receive a check in the mail from your school or youll notice that credits have been added to your school account. Your school will typically make two installments per academic year.
You wont be charged fees for the Perkins Loan unless you pay late, miss payments, or only give partial payments.
To sum up, the Federal Perkins student loan is a low interest rate loan given to students via 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.
About the Author
A college student herself, Elise Fisher enjoys writing articles for her website About Student Loans. Don't miss the Federal Student Loans page.
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