Perkins Loans

If you've been sifting through the different financial aid sources provided by both governmental and private entities, you've probably come across a number of different programs that seem to be very similar but offered to a different group of individuals. Aside from the Stafford Loans and Pell Grants offered by the federal government, you've most likely run across Perkins Loans and are wondering what they are. Designed to accommodate the most needy students, Perkins Loans are much less commonly disbursed than many other government funds. How do you know if you qualify for a Perkins Loan?

In order to be considered for Perkins Loans, you will need to fill out the standard FAFSA form that is used to qualify you for all federal funding opportunities. These loans offer extremely low interest rates, very long term repayment options, and larger sums of money disbursed to the borrower. The EFC, or Expected Family Contribution, as determined by the FAFSA, must be severely inefficient for students to qualify for a Perkins Loan.

Like other federal loans and grants, Perkins Loans must be reapplied for every academic year. Loans are available for both undergraduates and graduates who are seriously financially disadvantaged. Undergraduates are eligible for up to $20,000, while graduates may receive a maximum of $40,000. Unlike some loans, Perkins Loans do not have a six-month grace period. As long as students remain enrolled in at least half-time study programs, repayment is deferred. Upon completion of the program / graduation, or if the student drops below half time, there is a 90 day grace period, after which payments become due.

A standard Perkins Loan will have a repayment period of approximately 10 years, though extreme hardship may warrant a lengthening of terms. Since the loan is disbursed directly through the college you attend, you may want to contact the financial adviser at the college regarding a deferment or lengthening of your terms.

Paying for school is not easy, but we are here to help. OEDb's student finance section will help you find the money you need to pay your tuition and other college expenses. We cover scholarships, college grants, and student loans. Scholarships and grants are both forms of "free money", meaning they don't need to be paid back. Scholarships are typically awarded by businesses or individuals, with the money being earmarked specifically for tuition. They can be awarded based on a student's location or by religious affiliation, such as Catholicism or Islam. Grants are typically awarded by governments or non-profit organizations and the money often can be applied to several different expenses a student may incur, not solely tuition. They can be awarded based on location or ethnicity, for instance African American or Hispanic. Loans are not considered "free money", because unlike scholarships and grants, they do need to be paid back after graduation. Common federal loans include Perkins and Stafford. Loans are also available by location.