Perkins Loan is a school or campus based student loan program that is administered by the school with the Federal government providing the school with the funds for the loan. Perkins loans are awarded to both graduate and undergraduate students and is only done when there is an extreme financial need on the part of the student. Quite a few students rely on financial assistance and Perkins loans come in handy to those that are in dire financial need. This Federal Aid Program from the Federal Government is primarily to ensure American college students are able to complete their post-secondary education by providing much needed financial assistance.
A good thing about the Perkins Loan is that the grace period fees and the repayment options are extremely flexible. Also the cancellation or forgiveness policies for a Perkins loan is much better when compared to a Stafford Loan.
Perkins Loan Borrowing limits
The limits of a Perkins loan is determined by the school administration at the time of application. That said, graduate students are provided with as much as $8000 a year and with $60,000 as the lifetime limit where as the undergraduate students can be provided a maximum of $5,500 a year with a lifetime limit of $27,500.
Perkins loan comes with a low-interest rate of 5%; you can opt for this loan as there are hardly any fees to be paid other than this interest. You will be provided with a grace period of nine months, for repaying the loan. The best part of a Perkins loan is that while you are enrolled in college the federal government will pay the interest of the loan for you. You will be given 10 years to pay back the loan.
Perkins Loan Eligibility
You must attend a college or a university that has applied and been granted allocation of funds for the Perkins Loan to be eligible. You must also be able to demonstrate extreme financial need in your application. Students need to file their Free Application for Federal Student Aid to ascertain their financial need. It is also essential to submit your FAFSA as early as possible as the colleges have limited funds.
Perkins Loan Application
Perkins Loan is available in 1,700 colleges worldwide. While hunting for colleges or universities, keep in mind to make sure by checking with the school’s financial aid department if the Perkins Loan is available or not. It is necessary to submit a completed FAFSA to be considered for the Perkins Loan. You must have and demonstrate financial need in your FAFSA application and the severity is determined by the school administration.
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