Student loans are a popular way for people to fund their college and graduate education. Federal student loans seem to be the most common and most easily accessible. For those students in need, the federal government offers the Federal Perkins Loan program. These are low-interest loans that students can use for their college and graduate expenses.
There are about 1,800 schools throughout the country that accept participating students from the Perkins loan. The Perkins loan offers a lot of flexibility to the school that the student is attending. The school has the ability to determine how much money is awarded to students because the school provides the funding and is reimbursed by the government. Once it is determined that you qualify for a Perkins loan, the school that you are attending will combine some of their own funds with federal funds.
Only students with the greatest need will receive a Perkins loan because of the setup. The school will disperse the money to you directly after applying funds to your tuition charges. Perkins loans are a lot like Stafford loans, except there is a longer grace period and there are no fees involved.
- Disbursement made directly from student’s school
- Loans made especially for students with greatest need
- Low interest rate loans
- No fees other than interest
- No interest until after you graduate or stop attending school
- Nine-month grace period versus the six-month grace periods of other student loans
- Not available for all students
- Loans limits per year may not be enough to cover all college expenses
Depending on how much you borrow, your payback amount will vary. The interest charge for a Perkins loan is five percent.
Going to college can be a reality even for those that can’t afford it. If you are willing, student loans can make it possible to get a college education. A Perkins loan can be a great tool for those that would otherwise not be able to attend college or graduate school. Fill out a FAFSA to see if you qualify for a Perkins loan. Although the money does have to be paid back, the loans can help fund an education that might be unreachable otherwise.
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