Federal Perkins loans are given to college students with financial need at a low-interest rate. To be eligible a student must be a United States citizen or a permanent resident. Because the government determines a student's financial need, the student must fill out a form called the FAFSA, short for Free Application for Federal Student Aid. This form goes to the Department of Education, who then determines a student's need based on the information given to them. This includes whether students are eligible for the Federal Perkins loans or not. Not having the needed finances should not stop one from getting an advanced education.
Since a student cannot directly apply for this financing, each school determines the amount a student can receive after getting the eligibility information from the government. The Federal Perkins loan is borrowed from and repaid directly to the college or university. They are made available through government funds contributed to each school. Therefore, each school only has a set amount of money they can give out, and each decides on a certain number of people eligible to receive the Federal Perkins loans. The amount of the financing for each student is also up to the school. Students can borrow up to $4000 per year for undergraduate study and up to $6000 per year for graduate study.
An important thing to note for both students and parents regarding any student financing is that it is essential to be responsible. Repayment of Federal Perkins loans begin nine months after a student graduates, leaves school, or becomes a part-time student. And although a person can take up to ten years to repay, payments should be made on time or a late charge will be instituted, and continuous late payments could result in major penalties. "Be ye strong therefore, and let not your hands be weak: for your work shall be rewarded." (2 Chronicles 15:7)
Because of it's low interest rate set at five percent and great repayment plan, the Federal Perkins loan is considered one of the best educational finance assistance available. The rate stays the same for the life of the loan, something rarely seen in a world where loan rates fluctuate. Anyone going to college or sending a student to college should be familiar with what financing there is and what is available for qualified persons. Taking advantage of the Federal Perkins loan if needed would definitely be beneficial in advancing a person's education.
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