Facts to know about The Federal Perkins Loan
When determining how you’ll pay for a degree program, you’ll discover that there are many different good education grants, scholarships, and loans available to students. While education grants for college and scholarships are the best form of aid because they don’t have to be repaid, there are also many types of loans that are designed specifically for college students that need aid beyond these awards.
One of the loans offered by the government to college students is the Federal Perkins Loan. It’s a loan awarded to college students through the Department of Education based on their financial need. The school you choose to attend is the lender for the loan, but the government provides the funds. It’s available to both undergraduate and graduate students.
After you’ve learned all about education grants and determined how much more aid you’ll need, you can then take into consideration how much you’re allowed to borrow under different types of loans. So how much can students borrow under the Perkins Loan? Undergraduate students can borrow up to $5,500 each year their enrolled, and the total amount they can take over the course of their time in school is $27,5000. As for graduate students, they can borrow up to $8,500 each year their enrolled in an advanced degree program, and can borrow a maximum of $60,000 during their time as a grad student, which includes any Perkins Loans they took out as an undergraduate too. The loans all carry a 5% fixed interest rate.
As long as you’re enrolled in school at least half time, you don’t have to start paying back the loan. You’ll also have a 9-month grace period after graduating, dropping out of school, or dropping below the status of a half time student before you must begin repaying the loan. You’ll have up to 10 years to pay back the total amount of the Perkins Loans, and your monthly payments will depend on how much the loan amount is and how long you plan to take to pay back the loan.
There are some exceptions for students who are looking for more time before having to pay back Perkins Loans. If students are called to active duty, they can be granted a longer period of time before they have to start repaying their loans. There are also a number of other reasons that students are allowed to receive what’s called a deferment on their loan. During this time, you don’t have to make payments on your loans and no interest accrues on the amount due.
There are also times when students never have to pay back their Perkins Loans, or at least part of them. Teachers who took out Perkins Loans to complete their education and who then begin working in designated low-income schools or teaching subjects like math, science, or bilingual education are eligible to have their loans cancelled completely.
If you still need financial aid for college after looking into all the best best academic writing service, just know that there are student loans available to you as a college student. These programs are often created with reasonable interest rates and a grace period before you have to repay them, which makes it easier to afford a degree.