The Perkins Federal School Loan
There are several federal school loan programs available to students who need supplemental financial aid to pay for their higher education. The government offers a variety of programs based on financial need, income level and education program. Each program has its own benefits and should be understood in full before any agreements are signed. The Perkins loan is a federal school loan that is offered to undergraduate and graduate students. While it is a federal loan, you school is actually your lender and when you repay the loan it will be directly to the school. The following is a brief description of the Perkins federal school loan.
General Information
The Perkins federal school loan is a very low interest loan that is offered to student with demonstrated financial need on the undergraduate or graduate level. These students typically come from areas where the income is low or from families with low income standing. It is a supplemental loan for students who have already taken out the maximum amount of subsidized federal school loan programs. Your loan amount increases with academic level and your eligibility is evaluated annually based on academic standing.
Money Matters
This federal school loan has no fees associated with doing the application or disbursement. You will have to repay the loan when you have completed your education program or drop below half time status. Once you have entered the repayment period, it is important that you make your payments on time each month to avoid late charges or a negative status on the loan. If you fail to repay the loan (or default) you will have to repay the loan, collection costs and possibly legal fees. Once you have signed the promissory note, you have only 30 days to cancel the loan be contacting your school in writing to request that it be cancelled. If you do not cancel within that time period, you are legally bound to repay the amount borrowed. Not repaying the loan can result in huge financial problems.
If you are unable to repay the loan because you have enrolled in another educational program or are having financial distress, you have the options of forbearance or deferment to postpone payment on the loan. For each, you will have to submit an application and proof that you need to delay payment on the loan. Approval is up to the discretion of the school board.
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