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Perkins Loans Overview

If you need money to finance your education, you can apply for a Perkins Loan. It is available through schools, which in turn lend the money from the US Government. The school decides to which applicants to give the money. Perkins Loans are characterized by low interest rate, which makes them extremely attractive to students.

Qualifying for a Perkins Loan

In order to get a Perkins Loan, the student should:

  • be part-time or full-time enrolled,
  • be in his/her undergraduate or graduate studies, and
  • have US citizenship, permanent residency, or eligible non-citizen status.

The different between the Perkins Loan and other student loans is that the student doesn't have to be enrolled half-time.

Perkins Loan Application

Perkins Loans are usually viewed as easy to get, but the process may be hindered by the proof that you are in a higher financial need as compared to other students, which you should show. In order to increase your chances of getting a Perkins Loan, you should apply as early as possible. The application process starts with the completion of the FAFSA process.

Perkins Loans Advantages

Some of the major advantageous characteristics of Perkins Loans are:

  • You are not subject to a credit check during the application process.
  • The Perkins Loan comes at a 5% fixed interest rate.
  • There are no origination and guarantee fees. Many other student loans may have such fees of about 1-4%.
  • While you are doing your studies you can benefit from interest subsidies.
  • In cases of financial hardship, the loan payments may be deferred, extended, or even reduced.
  • You can benefit from very flexible repayment schedules, which can also include the option of debt consolidation.
  • Finally, if you want to repay the loan before the due date you will be penalized in no way.

Perkins Loan Amount

When the amount of your loan is considered, the lender will take into account your current status.

The maximums can be as follows:

  • Undergraduate students - $4,000 each year or $20,000 during their whole course of studies.
  • Graduate students - $6,000 each year of the graduate study or $40,000 during their whole course of studies.

You are not guaranteed in any way that you will get the maximum loan amount. The amount you will get depends on the resources that have been given to the school. It is its responsibility to distribute the resources. If the resources are limited, the school may decide to give loans to more students, but with smaller amounts.

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