About Perkins Student Loans
Perkins student loans are federal student loans that are meant to help students with great financial need afford higher education without having to borrow at a high interest rate. Undergraduate and graduate students deemed to have exceptional financial need can receive this type of student loan, but these loans are extremely rare - they make up about 2% of all disbursed federal aid. A family's Expected Family Contribution (EFC) must be evaluated to be quite low in order to qualify for a Perkins Student Loan. The rate of interest is fixed at 5% on these student loans, and they are subsidized, so the government pays the interest on Perkins Student Loans while the students are pursuing their education. As such, Perkins student loans are very desirable, but are only a possibility for students who have extreme need.
Perkins Student Loans Borrowing Limits
Undergraduate students can obtain up to $5,500 per year and up to $27,500 for an entire undergraduate program through Perkins Student Loans. Graduate students, on the other hand, can get up to $8,000 per year and $60,000 for a graduate program.
Applying for Perkins Student Loans
Students who are U.S. citizens can apply for Perkins student loans simply by filing the Free Application for Federal Student Aid (FAFSA). You also need to demonstrate exceptional financial need in order to qualify for this type of student financial aid. It is also a requirement to have a high school diploma or GED to apply for and receive Perkins Student Loans. Students who pass the approved ability-to-benefit (ABT) test are also eligible for Perkins Loans.
Perkins Student Loans Repayment
Students are required to begin repaying Perkins student loans 9 months after either graduating or withdrawing from school, and the repayment period can last up to 10 years.
Benefits of Perkins Student Loans
Perkins student loans help students to pursue their educational goals while minimizing financial constraints and future debt. With low interest rates and an easy repayment process, students can easily manage their studies and then repay their Perkins student loans in a convenient manner. Students who cannot afford to pay for costly academic programs don't have to be deprived of acquiring higher education, since Perkins Student Loans help and enable them to pursue their educational goals without being worried about their financial limitations.
Q:What is the interest rate on Perkins student loans?
A: Perkins loan are popular federal loans based on need, offered by the US Department of Education and geared towards making education affordable for all. The interest rate on Perkins loan is fixed at 5% and has a 10-year repayment period. To apply for a Perkins loan, all you have to do is fill out a FAFSA application.