Learning About Perkins Student Loans
A Federal Perkins Loan is a very low-interest loan that can be used for both undergraduate and graduate students who are in financial need. You get the Perkins Student Loans from whichever school you are attending - or planning on attending - and the loan itself is made with government funds with a share contributed by the school, and you have to repay this loan to your school over few years following the accepting of the loan.
The Details of the Perkins Student Loans
In terms of how much you are able to borrow with the Perkins Student Loans, this depends on several factors, including when you apply, your level of need, as well as the particular funding of your school. Typically, you can borrow up to: $4,000 each year of undergraduate study (the total amount you can borrow as an undergraduate is $20,000), and $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 that you borrowed as an undergraduate).
In regards to when exactly you have to repay the Perkins Student Loans, basically if you are attending school at least half time, then you have nine months after you graduate, leave school, or drop below half time status before you have to begin repaying the loan. However if you are attending less than half time, then you are going to have to check with your financial aid administrator so that they can work together with you in order to properly determine your specific grace period.
You have to understand that with the Perkins Student Loans you are signing a promissory note and that you are thus agreeing to repay the loan according to the specific terms of the note. As well, you should really make sure to think about exactly what your repayment obligation means before you take out a loan, so that you are going to understand everything and so that you understand the repercussions if you do not pay back your loan on time.
If you default on your Perkins Student Loans, your school, as well as the lender or agency that holds your loan, the state, and the federal government are able to take action in order to recover the money, and this includes notifying national credit agencies, which in turn may end up destroying your credit.
Perkins Student Loans can be a great form of assistance to you while you are pursuing your educational experience; however you have to make sure that if you get one of these loans you are going to be able and willing to pay it back on time.
