Federal Perkins Loans for College Students

Regardless of your credit historyyou may be approved for Perkins loans. Considering family income limitations and the number of siblings you have that are also attending college, your EFC represents a baseline contribution that falls within your means. If you are under the impression that student loans are somehow less serious or not a big deal, you are mistaken. The FFEL program allows private lenders to offer students loans for college while regulating interest rates and other loan features that ensure borrowers are treated fairly and consistently. The amount of a students monthly payment and the duration of the payment schedule will be determined when the loan is initially approved. Individual colleges evaluate your financial aid needs based on information you submit to the government. Ford Federal Direct Loan programs.

Campus-Based Student Financial Aid from the Government

Federal Loan Interest Rates

Loans made through the Federal Perkins Loan Program, often called Perkins Loans, are low-interest federal student loans for undergraduate and graduate students with exceptional financial need.. Important: Under federal law, the authority for schools to make new Perkins Loans ended on Sept. 30, , and final disbursements were . See if you qualify for a low interest loan. The A Perkins Loan is a low-interest, government insured loan that is available for those students who meet the criteria after submitting an application. The Secretary proposes to amend the regulations governing the William D. Ford Federal Direct Loan (Direct Loan) Program to establish a new Federal standard and a process for determining whether a borrower has a defense to repayment on a loan based on an act or omission of a school. We propose to.

Help Students Succeed

Succeed in College

The amount of a students monthly payment and the duration of the payment schedule will be determined when the loan is initially approved. You will need to fill out and submit the Free Application for Federal Student Aid before the yearly deadline. When you file a FAFSA you are automatically considered for all Federal loans, grants and scholarships depending upon the financial information you provide. Almost every student qualifies for Stafford Loan aid in either a subsidized or unsubsidized loan.

A copy goes to all colleges to which you've applied and this information will help determine the nature of any loans, grants or scholarships you may be offered.

When you have an award letter or aid package in hand from the college you've chosen the next step is to choose a financial aid lender. In the past colleges and universities provided students with Preferred Lender Lists—these are out. You are free to choose your own lender for your Federal loans. If you are under the impression that student loans are somehow less serious or not a big deal, you are mistaken. It's important that you take the loans seriously. Although it may be years before you begin repayment your financial future depends upon your diligence following repayment requirements and adhering to all of the loan terms.

Considering family income limitations and the number of siblings you have that are also attending college, your EFC represents a baseline contribution that falls within your means. Formal offer letters from university financial aid offices break down the types of assistance the college is extending to you. For limited-credit college students, federal loans present attractive borrowing options, because Perkins and other government loans are not dispensed based on credit worthiness.

Regardless of your credit history , you may be approved for Perkins loans. The school you attend becomes your Perkins lender, and not all universities participate in the program. Unfortunately, due to limited funding, some students who qualify for Perkins Loans do not receive them. Your best strategy for winning Perkins Loans: As long as you are enrolled in college at least half time, your loan interest does not accumulate.

You must begin repayment within 9 months of leaving school, or risk default. Your Perkins Loan promissory note binds you to the contract, so failing to follow through with scheduled payments has devastating credit consequences.

Your loan may be administered by a student loan servicing company. Companies like these enter into contracts with colleges and universities to provide financial support for campus-based student loan programs.

Tackle repayment difficulties before they snowball into credit catastrophes. Once you are in default, it is hard to mitigate damage to your credit record. If you are a student teacher receiving a Federal Perkins Loan, you may qualify for partial or full loan cancellation when you agree to work full-time in a critical need teaching capacity.