How To Pay Off A Perkins Student Loan Quickly
The Perkins Loan is a Federal Student Loan provided by the U.S. government
to undergraduate and graduate students in need of financial assistance. Perkins
Loans are allotted to students based on their current income status.
It is recommended that students apply for federal loans such as the Perkins
Loan, and others, before applying for private student loans. Students are
also encouraged to apply for grants and scholarships before seeking out any
type of loan.
U.S. students may apply up to $27,500 in undergraduate school related fees.
Graduate students may apply for up to $60,000 in school related fees.
School related fees include items such as school tuition, housing, meal
plans, books, etc.
It is important when researching loans to pay close attention to interest
rates. Federal Loan Interest rates are normally less expensive than Private
Loan Interest Rates. The Federal Perkins Loan Interest rate is only 5%.
This is a set interest rate for all students.
Upon qualifying for a Perkins Loan, students may make payments directly to
their school. Please be aware that not all schools qualify for a Perkins
Loan, but there are approximately 1,700 schools in the U.S. that can grant
Perkins Loans to students.
How to apply for a Federal Perkins Loan
There are a few simple steps to applying for a Federal Perkins Loan. Most
schools provide students with a Financial Aid Department, which can also
assist in this process.
The first step to applying is to complete a form for all Federal Student
Loans called the FAFSA (Free Application for Federal Student Aid). This
application can be found on the following web site- http://www.fafsa.ed.gov.
The next step is to fill out a Perkins Promissory Note. The Promissory Note
is a legal contract the student must sign before obtaining government
funded loans. A copy of this document will be given to the student; it
details the agreement specification and repayment options such as interest
rates, forbearance, and grace periods.
Upon completion of these applications, students are awarded varying
amounts. Some of the determining factors on how much a student receives are
the student’s income level, the amount of loan money the school still has
available and the amount of other student loans obtained by that student.
How do I pay off a Perkins Loan?
One benefit of applying for a Perkins Student Loan is that those in certain
professions may be eligible for a student loan deduction or write off. For
example, both teachers and those in the Peace Corps are eligible for
reductions in their loans, based upon how much they owe in loans and how
long they work in respective fields.
Upon graduating, students have nine months to seek employment and begin
paying off this type of student loan. This applies for students that are
enrolled in school at least half-time. If a student is not enrolled in
school at least half-time, there is a possibility that the nine month grace
period will start before graduation.
It is also worthwhile to note that students do not have to pay interest for
a Federal Perkins Loan until after graduation. For more information on
Perkins Loans log onto the U.S. Department of Education Website-