| The Perkins loan is a federal student loan available for | | | | the federal government will distribute federal funds to |
| students attending an accredited college or university. | | | | participating colleges, who then lend these funds to |
| Students must be in their first undergraduate or | | | | attending students. When the student had completed |
| graduate program and have any extraordinary financial | | | | their program or is no longer enrolled then they will |
| need. In order to determine if a student is eligible to | | | | make all repayments back to their school, who will then |
| receive a Perkins Loan, students must complete and | | | | send the borrowed funds back to the federal |
| submit the FAFSA, or Free Application for Federal | | | | government. |
| Student Aid. | | | | There are many advantages with the Perkins Loan, |
| Students will receive an EFC score from the | | | | which includes very competitive interest rates for |
| Department of Education, which will determine how | | | | borrowers and friendly loan repayment terms. The |
| much a student is eligible to receive in federal financial | | | | Perkins Loan interest rate is currently at 5% and is |
| aid. Students that are unable to contribute $0 will have | | | | variable, which means it can fluctuate throughout the |
| a score of 0, while a student that is able to pay for all | | | | term of the loan. Even though the interest rate is |
| college expenses will have an EFC score of 3,000. As | | | | variable, it is still variable competitive when you |
| you can see, the range for an EFC score is between | | | | compare it against other private bank student loans. |
| 0 and 3000. Students in the lower EFC score range | | | | Another advantage of this loan is that it offers very |
| will be eligible to receive a Perkins Loan. | | | | friendly repayment terms. Students have an option to |
| The student's college/university is the lender of the | | | | choose from multiple repayment plans that suites their |
| loan, which means all disbursements will be made out | | | | best needs. |
| to your school. The lending process is fairly simple. First, | | | | |