Perkins Loans may be awarded to students who are eligible for Federal Student Aid (most domestic students) and have demonstrated financial need. Undergraduates: $5,500 per award year, up to $27,500 total. Students who have not yet completed two years of undergraduate work are only allowed to borrow up to $11,000.
How do I know if I have a Perkins Loan?
You can also call the Federal Student Aid Information Center, 1-800-4-FED-AID, TDD 1-800-730-8913 . The Center’s counselors can help you figure out what types of loans you have. Federal loan promissory notes and applications will state the name of the federal loan program (Stafford, PLUS, Perkins, FFEL, William D.
Who is eligible to receive a Perkins loan?
To be eligible for a Perkins Loan, applicants must be all of the following: An undergraduate, graduate, or professional student with exceptional financial need . Enrolled full-time or part-time . Attending a school that participates in the Federal Perkins Loan Program .
Is Perkins a grant or loan?
The Perkins Loan is a subsidized loan , meaning the federal government pays the loan’s interest while the borrower is in school.
What is the difference between a Perkins Loan and a direct loan?
Some schools participate in the Federal Direct Student Loan program. This program is managed directly by the federal government. Perkins loans are managed by your school. ... You pay the Perkins loans back to your school when your loan goes into repayment status.
What type of loan is a Perkins loan?
Loans made through the Federal Perkins Loan Program, often called Perkins Loans, are low-interest federal student loans for undergraduate and graduate students with exceptional financial need . Important: Under federal law, the authority for schools to make new Perkins Loans ended on Sept.
Why is Perkins loan Ending?
Due to budgetary issues , the federal government started to phase out the Perkins loan in 2015, but later extended the program until 2017 in the hope that a more permanent solution would be created.
Are Perkins loans on hold?
Both payments and interest are automatically suspended on all federally held Federal Perkins Loans from March 13, 2020 through January 31, 2022. On a voluntary basis, schools that hold Perkins Loans may choose to provide the same suspension of interest and payments to the loans they hold.
Do loans have to be repaid?
Unlike grants and scholarships, loans are money that you borrow that must be paid back with interest . In most cases, you must repay your loans even if you don’t complete your degree, are unhappy with the education you received or experience financial difficulty as the result of unemployment or bankruptcy.
What are the characteristics of a private loan?
- Interest Rate: The most recognizable aspect of private loans is the rate. ...
- Payments while in school: ...
- Repayment benefits: ...
- Cosigner release: ...
- Years of the term: ...
- Prepayment penalties:
What is the interest rate for a Perkins loan?
The interest rate for a Perkins loan is 5% . Your school is the lender. The loan is made with government funds, and your school contributes a share.
What is a Perkins Grant?
The Carl Perkins Grant provides federal funding to states to improve both secondary and postsecondary career and technical education programs . ... The money is awarded only for programs that support career and technical education. This grant originates from the Carl D.
Who owns Federal Perkins loan?
Contact Your College about Federal Perks Loans
If you already know that the Department of Education owns your Federal Perkins Loan, contact the ESCI Federal Perkins Loan Servicer at 1-866-313-3797.
Do I have to pay back a Perkins loan?
If you were an undergraduate or graduate who took out Perkins loans before they were discontinued, you’re still required to repay them . But because of low (and fixed) interest rates and lots of forgiveness options, there are many ways to make Perkins loans repayment more manageable.
Why is a Stafford loan better than a PLUS loan?
Unlike a Stafford loan, the funds from a PLUS loan are paid directly to the parents of the student even though the money is being borrowed on behalf of the student . ... In addition, to be eligible for a PLUS loan, the borrower is not required to show financial need as they do with a Perkins and Stafford loan.
Are Sallie Mae loans Federal?
Sallie Mae started off under the federal government and provided loans through the Federal Family Education Loan program, or FFEL. ... Since then, Sallie Mae no longer services federal loans and provides only private student loans.
