Donnette

When it comes to financing your college dreams, there are several different loan selections to consider. With the Federal Perkins Loan, students may enjoy a low-interest option that helps both undergraduate and graduate students who are in need of a little extra financial assistance. While banks and other institutions become your lender through other student loan choices, your college is your lender when applying for the Perkins Loan. This is because the loan is comprised of funds that come from the government, as well as school donations. It is your school that you will repay the loan to.

Borrowing Limitations

There are many different factors that affect the amount of money you may borrow with a Perkins Loan. For example, the time of year you apply for the loan, your level of need, as well as the lending capacity of the school will determine how much money you will receive. The limits of borrowing for an undergraduate are $4,000 per school year with the total amount of borrowing capped at $20,000. If you decide to pursue a graduate degree, you may borrow $6,000 per year with a grand total of $40,000 during your days as a graduate or professional study student.

Once you are granted a Perkins Loan, you will either receive a check from the school or will find that credits have been applied to your school account. Typically, the loan is given in the form of at least two payments that occur throughout the academic year.

Any Extra Fees?

There are no extra fees charged to individuals with a Perkins Loan. But, you must keep in mind that if you miss a payment, pay late, or do not fulfill the monthly repayment; late charges may arise. For those who have seriously fallen behind in their loan payments may also face collection costs.

Loan Repayment

Repayment of the Perkins Loan occurs nine months after you graduate from school. Repayment also occurs once you leave school for any reason, as well as drop below half time status while still taking classes. The only exception to this rule occurs when you enter active duty with the military. All of the extra time allotted before repaying a student loan is called a grace period.

What If I Can’t Make Repayments?

Sometimes after graduation and during the repayment schedule for your Perkins Loan, one is faced with unforeseen hardship that puts a serious strain in your financial situation. Don’t panic; there is help for these circumstances that are called a deferment and forbearance.

A deferment allows borrowers to postpone the payments on their student loans. Forbearance is set for a limited period of time where payments are either reduced or postponed. Keep in mind that with forbearance, interest continues to add up. Also, both options require the filing of applications and acceptance.

If you are interested in applying for a Perkins Loan, you may view an online application, as well as pay a visit to the Financial Aid office of your school.

Get more student advice on all subjects including student loans advice from the dedicated student website http://www.118student.co.uk