The Federal Perkins Student Loan - Perkins Student Loan Information
Posted on January 17, 2007
Filed Under Student Loan Consolidation |
Federal Perkins Student Loan
Federal Perkins Loan - what is it and am I elgible for one?
If your EFC is below a given amount, you’ll be eligible for a Federal Pell Grant, assuming you meet all other eligibility requirements. There isn’t a maximum EFC that defines eligibility for the other financial aid programs. Instead, your EFC is used in the following equation to determine your financial need: Cost of Attendance - Expected Family Contribution = Financial Need.
How much can you borrow with a Federal Perkins Student Loan?
Depending on when you apply plus your level of need and including the funding level of the school of your choice, you can borrow up to
- $4,000 for each year of undergraduate study (the total amount you can borrow as an undergraduate is $20,000).
- $6,000 for each year of graduate or professional study (the total amount you can borrow as a graduate/professional student is $40,000, including any Federal Perkins Loans you borrowed as an undergraduate).
What’s the cost to me for a Federal Perkins Student Loan?
A student qualifying for the Federal Perkins Student Loan is not charged any fees to take out the loan. However, if you skip a payment, make a payment late, or make less than a full payment, late charges can be accessed. So make you payments! If you you continue to fail to make payments persists, you might have to pay all collection cost associated with the loan.
How are the funds from the Federal Perkins Student Loan disbursed?
The school you choose will either pay you directly with a check normally or credit your account. Generally, you’ll receive bi-payments during the academic year.
Can I cancel the loan after I sign the note?
Sure. The school you choose is required to notify you in writing whenever it credits your account with your Federal Perkins Student Loan funds. This notification must be sent to you no earlier than 30 days before and no later than 30 days after the school credits your account. You may cancel all or a portion of your loan if you inform your school that you wish to do so within 14 days after the date that your school sends you this notice, or by the first day of the payment period, whichever is later. Your school can tell you the first day of your payment period. If you receive Federal Perkins Student Loan funds directly by check, you may refuse the funds by returning the check.
When do I have to start repaying my Federal Perkins Student Loan?
If you’re attending college at least half of the time, you have 9 months after you graduate, leave school, or drop below half time status before you must begin repaying the loan (you may have longer than nine months if you are on active duty with the U.S. military). This is called a grace period. If you’re attending less than half time, check with your financial aid administrator to determine your grace period. At the end of your grace period, you must begin repaying your loan. You may be allowed up to 10 years to repay.
Can I postpone repaying my Federal Perkins Student Loan?
Yes you can. Under certain conditions, you can receive a deferment or forbearance on your Federal Perkins Student Loan loan. During a deferment, you are allowed to temporarily postpone payments on your loan, and no interest accrues.
Deferments are not automatic however. You must apply for one through your school by using a deferment request form your school can give you. You must file your deferment request on time or you’ll pay a late charge. For more details on deferments, contact your financial aid office.
If you are temporarily unable to meet your repayment schedule of your Federal Perkins Student Loan but are not eligible for a deferment, you can receive forbearance for a limited and specific period. During forbearance, your payments are postponed or reduced. Interest continues to accrue; you are responsible for it.
Forbearance isn’t automatic either. You may be granted forbearance in up to 12-month intervals for up to three years. You must apply in writing for forbearance through the school that made your loan or the agency the school employs to service your loan. You’ll have to provide documentation to support your request for forbearance. You must continue making scheduled payments until you are notified that deferment or forbearance has been granted.
Can my Federal Perkins Student Loan be cancelled?
Yes. The loan can be cancelled if the borrower dies or becomes totally and permanently disabled. A loan can also qualify for cancellation under certain other conditions-as long as the borrower is not in default. See chart below for the list of cancellation provisions. For more information, contact your financial aid office.
If you serve as an enlisted person in certain specialties of the Armed Forces, the U.S. Department of Defense might, as an enlistment incentive, repay a portion of your student loan. Note that this is not a cancellation. If you think you qualify, contact your recruiting officer.
Below is a summary of the conditions in which a Federal Perkins Student Loan may be forgiven.
- Borrowers full and permanent disability or death - 100% forgiven.
- Full time teach in a designated elementary or secondary school serving students from low-income families - up to 100%.
- Full time special education eachers including teaching children with disability in a public or other nonprofit elementary or secondary school - up to 100%
- Full time qualified professional provider of early intervention services for the disabled - up to 100%
- Full time teach of Math, science, foreign language, bilingual education or in other fields designated as teacher shortage areas - up to 100%
- Full time employee of a public or nonprofit child or family services agency providing services to high risk childlren and their families from low income communities - up to 100%
- Full time Nurse or Medical Technician - up to 100%
- Service as a full time law enforcement or corrections officer - up to 100%
- Full time staff member in the education component of a Head Start Program - up to 100%
- Vista or Peace Corps Volunteer - up to 100%
- Service in the U.S. Armed Forces - up to 50% in areas of hostilities or imminent danger
- Bankruptcy in rare cases - up to 100% Note: Cancellation is possible only if the bankruptcy court rules that repayment would cause undue hardship.
- Closed school before you complete program of Study - 100%
The Federal Perkins Student loan isn’t for everyone, but for many it’s all they need to obtain a college education.
Federal Perkins Student Loan
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