The Federal Perkins Loan Program provides lowinterest loans to help needy students finance the costs of postsecondary education. … Perkins borrowers are eligible for loan cancellation for teacher service at low-income schools and under certain other circumstances specified in the law (HEA).
Also, what is a Perkins loan and are they still available?
The federal Perkins loan program, which provided low-interest loans to students with exceptional financial need, expired in 2017. … 30, 2017, new Perkins loans are no longer available. They featured a fixed 5% interest rate and, at nine months, a longer grace period than other student loans.
Hereof, how does a Perkins loan work?
A Perkins loan is a type of federal student loan based on financial need. Perkins loans are available to undergraduate, graduate, and professional students. A Perkins loan is a subsidized loan, meaning that the federal government pays the loan’s interest while you are in school.
Can a Perkins loan be forgiven?
With Federal Perkins Loan forgiveness, it’s possible. If you have a Perkins Loan from before the program expired on Sept. 30, 2017, then you may be able to access this opportunity and have your balance forgiven over a period of five years, or get partial forgiveness in even less time.
Paying back your Perkins Loan: If you are attending school at least half-time, you have nine months after you graduate, leave school, or drop below half-time status before you must begin repayment.
Options for handling Perkins loan repayment
- Change your repayment plan. As a federal Perkins loan borrower, you don’t have direct access to income-driven repayment plans if you need a lower monthly payment. …
- Delay your payment. …
- Pursue cancellation. …
- Weigh consolidation and refinancing.
Applying for Cancellation or Discharge
Application for cancellation or discharge of a Perkins Loan must be made to the school that made the loan or to the school’s Perkins Loan servicer. The school or its servicer can provide forms and instructions specific to your type of cancellation or discharge.
Both loan programs offer deferment and forbearance options for students who cannot pay their loan payment due to financial hardship or need. Perkins loans have a ten-year repayment limit. Stafford loans also have a ten-year repayment limit but do offer extended loan limits with loan consolidation.
Offered through the federal government’s Perkins Loans Program, a Perkins loan was a low-interest loan option made available to both undergraduate and graduate students who demonstrated an exceptional need for financial aid. … The program was replaced by Federal Direct Loans, often referred to as Stafford Loans.
How do I apply? You should start by submitting a Free Application for Federal Student Aid (FAFSA®) form. You will have to fill out the FAFSA form every year you’re in school in order to stay eligible for federal student aid.
Direct Unsubsidized Loans are available to undergraduate, graduate, or professional degree students enrolled at least half-time at a school that participates in the Direct Loan Program. Financial need is not required to qualify.
The Pay As You Earn Repayment Plan qualifies you for loan forgiveness after 20 years of on-time payments. This repayment plan will generally offer you the lowest monthly payment. … Forgiveness based on 20 or 25 years of on-time payments is only available to Federal Student loans.
Effects on You
If your Perkins Loan default is unaddressed, you will not be eligible for any other federal student loans. You will not be able to defer payment on any other government-backed loan. You could be prevented from renewing certain professional licenses. And you will not be able to enlist in the military.
You can also call the Federal Student Aid Information Center, 1-800-4-FED-AID, TDD 1-800-730-8913. The Center’s counselors can help you figure out what types of loans you have. Federal loan promissory notes and applications will state the name of the federal loan program (Stafford, PLUS, Perkins, FFEL, William D.