Federal Perkins Student Loans

Federal Perkins student loans are low interest loans for graduate and undergraduate students and were formerly called national Direct Student Loans. To be eligible, applicants must demonstrate exceptional need. The school is the lender with a Federal Perkins student loan and the amount is made with government funds with a share contributed by the school. The debt is repaid to the school. All of the details about this lending are available both online and through the college of choice. Interested individuals will need to fill out a printed FAFSA or an online FAFSA and turn it in before the deadline to be considered for government assistance. If they are still dependents, they will have to include their parent's income information on this form. Approval or denial only takes a matter of weeks and is well worth the wait should the applicant get approval.

How much money one can borrow with this government lending depends on the time of applying, the level of need and the funding level of the school. With a Federal Perkins student loan, applicants can borrow up to $4,000 each year for undergraduate work, with a maximum total of $15,000. With graduate lending, applicants can borrow $5,000 per year with a total of $30,000, including any funds borrowed as an undergraduate. There are no fees charged unless a payment is missed. Then late fees and collection fees are charged. Borrowers do not need to begin to repay the debt until they are out of school for 9 months or if they drop down to below 1/2 time, that is 6 credits per semester. A borrower can take up to ten years to repay Federal Perkins student loans.

This government lending can be part of a financial package with other student financing including other loans and/or grants. Before loading up on whatever is available in a financial package, applicants may want to consider the repayment amounts. For example, if the college attendee borrows $15,000 with a Federal Perkins student loan, with five percent interest, he or she will have to repay $19,090.85 for that debt alone. Federal Perkins student loans can be a godsend when one needs to pay for education, but before putting themselves in more debt, borrowers may want to ask the Lord, "for the Lord gives wisdom and from His mouth come knowledge and understanding." (Proverbs 2:6) College attendees must wise about choices and decisions.



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