The Perkins Loan is one of the most popular forms of Federal student aid due to the locked low interest rate that it entails. At just 5 percent interest, it is now among the lowest available. However, you should know that the Perkins Loan is not as easy to obtain. This is because only those with extreme need of financial assistance are awarded with a Perkins Loan by the Federal Government.
It is not the Federal Government that provides the Perkins Loan, however, it is the school itself and not all schools participate. Any student that is in an undergraduate, graduate or professional program may be eligible for a Perkins Loan. If you are able to prove that your Expected Family Contribution isn’t nearly enough to help pay for school, you can qualify.
You must apply early for a Perkins Loan, as well, since the funds are limited by the school. The maximum amount you can receive while in an undergraduate program is $5,500 with an overall cap of $27,500 for the program. Graduate and Professional students can receive even more, with a maximum of $8,000 per year. For your entire schooling career, you can receive no more than $60,000.
If your school deems that you qualify for a Perkins Loan, it will be applied directly to an account in your name that pays for fees directly charged by the school. If the amount that you are given is higher than the amount that the school needs to fulfill your requirements, then you will be issued a check by the school itself.
There is also a longer grace period for a Perkins Loan. Whereas the standard is six months, a Perkins Loan has a grace period of nine months. If you withdraw from your school, graduate or go below a half time schedule, then the grace period will begin. If you need further deferment, contact your school as they are the ones that service the Perkins Loan.
Make sure to always check back with us at Ameritech Financial for more and up to date information on student loans.
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