The repayment of your federal Perkins loan begins only nine months after you graduate or drop out of college. The repayment period for Perkins loan is generally 10 years with the interest rates being lower than that of a private student loan basically because the Perkins Loan is a federally funded loan.
You have the flexibility of paying off your Perkins loan in a much shorter time period than your original loan term for no penalty. The minimum monthly repayment amount for the Perkins Loan is $40.00. Your repayment amount completely depends upon the amount of money borrowed as well as the borrowing period. There are also tax incentives that are available to qualified students which further deducts your Perkins student loan interest. If you have trouble making your monthly payments you also have the option to defer payment of your loan albeit in a few qualified circumstances.
Do note that if you fail to repay your loan according to the terms agreed during the loan sanction it will be considered as a loan default. If you are contemplating student loan default do consider all the issues that come up a student loan default. You will have to face and undergo severe consequences incase you do default on your student loan. Also in the case of default, your school will have every right to take action against you to recover the money from you. If you are unable to pay the loan for some time due to a genuine and unavoidable reason do talk it out with your school’s financial aid office. In most cases arrangements can be made with the school for a different loan repayment structure.
The Perkins loan is a sought after loan since it comes with many advantages such as lower rate of interest, federally funded, options to defer your loan, options for forbearance of your loan and finally options to cancel or forgive your Perkins loan completely, which is why students in large numbers apply for a perkins loan. However do ensure that your monthly loan repayments are done on time and in full to avoid going into a loan default situation.
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