| Federal Perkins Loans are low interest government | | | | the Federal Perkins Loan are as follows. You must: |
| loans made through a participating school to | | | | * Be a United States citizen or an eligible non-citizen |
| undergraduate and graduate students with substantial | | | | with a valid social security number |
| financial need. | | | | * Demonstrate exceptional financial need |
| In order to qualify for a Perkins student loan, a | | | | * Be working toward a degree or certificate in an |
| student's Expected Family Contribution (EFC) as | | | | eligible program |
| determined by the government's FAFSA (Free | | | | * Have a high school diploma, GED or pass an |
| Application for Federal Student Aid) must demonstrate | | | | approved ability-to-benefit (ABT) test |
| the greatest level of financial need. | | | | * Register with the Selective Service if you're a male |
| Recipients of Federal Pell Grants receive priority for | | | | between 18 and 25 |
| Perkins Loans. | | | | * Maintain satisfactory academic progress |
| Apply for Your Perkins Student Loan Early | | | | The Benefits of a Perkins Loan |
| When applying for financial aid, it's important to note | | | | Every year billions of dollars are awarded to students |
| that schools distribute Perkins Loans on behalf of the | | | | in federal student aid. |
| government, and when the funds are gone, the funds | | | | The federal government offers many different types |
| are GONE. | | | | of student loans such as Subsidized and Unsubsidized |
| This means that even if you qualify for a Perkins Loan | | | | Stafford Loans, as well as the PLUS Loan to parents |
| you may not actually get one. So with interest rates | | | | to help their student pay for school. |
| steady at 5%, it's in your best interest to submit your | | | | One of the most popular federal student loans is the |
| FAFSA on January 1 or as close to that date as | | | | Federal Perkins Loan, which is a low interest |
| possible. This will ensure that you get the maximum | | | | government loan that is offered to students who |
| amount of Perkins Loan funds you are entitled to. | | | | exhibit financial need. |
| Perkins Amounts | | | | I highly suggest a Perkins Student Loan for three main |
| The maximum amount for a Federal Perkins Loan | | | | reasons: |
| made to an undergraduate student is $4000 per year, | | | | 1) You don't need a cosigner -This is a great first loan |
| up to a total of $20,000 over the course of an | | | | to get on your own because you don't need a |
| undergraduate program. | | | | cosigner to extend their good credit to you to get it. |
| For graduate students, the maximums are higher, at | | | | 2) You can have bad credit or no credit -Since you |
| $6,000 per year and $40,000 over the course of | | | | most likely have no established credit, or you may |
| graduate studies. | | | | have bad credit from previous credit card charges, |
| How the Government Helps You Pay Back Your | | | | you are still eligible to receive a Federal Perkins Loan. |
| Perkins Loan | | | | 3) The government pays your interest - This is the |
| The federal government subsidizes all Perkins Loans. | | | | most appealing and money-saving benefit of the |
| So while you are in school, and while the loan is in any | | | | Federal Perkins Loan. The federal government |
| type of deferment period, the federal government | | | | subsidizes all Perkins Loans, so as long as you are |
| picks up the tab for the interest. | | | | enrolled at least half-time in a degree program, and |
| This can save you thousands of dollars in interest | | | | while the loan is in any type of deferment period, the |
| when you eventually repay your loan. An example | | | | federal government picks up the tab for the interest. |
| follows: | | | | You will end up saving thousands of dollars in interest |
| Say an undergraduate student is able to take the | | | | once you finally start to pay back your loan. |
| maximum Perkins Loan amount of $4,000 each year | | | | If you're offered a Perkins Loan, you'd be wise to take |
| at 5% interest. The government will pay the student's | | | | the full amount you are eligible for. With a low interest |
| interest on the first loan for over fours years (four | | | | rate of 5%, a Stafford Loan, private loan or any other |
| school years plus a six month grace period), over | | | | loan product won't be able to compete. |
| three years on the second loan, over two years on | | | | Since a Perkins Loan will most likely not satisfy all of |
| the third loan and over a year on the fourth loan. | | | | your student aid needs, you can apply for other |
| This would equate to more than $2,000 in interest | | | | federal student loan products, like a Subsidized |
| payments that you don't have to make. That's like | | | | Stafford Loan or an Unsubsidized Stafford Loan. |
| getting an extra two thousand dollars free to pay for | | | | If you're still coming up short after you've exhausted |
| your schooling! | | | | your federal aid resources, you should seek out a |
| Eligibility Requirements | | | | Private or Alternative Loan source. |
| In addition to your EFC score, eligibility requirements for | | | | |