What is a Perkins Loan & Should You Consolidate It… or them?
When low-income student graduates from college, paying back their entire college tuition will be a very long and difficult process. Students who come from low income families generally have a lot of financial difficulties when trying to pay for college. However, they do have some options that would help fund their post secondary educational tuition. In order to fund their college education, a struggling college student may be eligible to receive a Perkins student loan. However, what is a Perkins student loan? A Perkins student loan is a loan that is generally only available to low income students who had demonstrated exceptional financial need. Perkins’s loans are loans that are given by the federal government and have a low interest rate of 5%.
How does a student qualify for a Perkins student loan?
In order for a person to qualify to receive a Perkins student loan they need to be enrolled in school for at least half the time. They must also have US citizenship, have a satisfactory academic progress, and have no default payment and other educational loans. If a person qualifies for a Perkins loan then they will be able to use the funds gained from the Perkins loan to supplement the rest of their college education.
What happens after person graduates?
When a person graduates, they will need to start repaying back their loans. However, Perkins’s loans have longer grace periods than the typical Stafford loans. However, depending on the amount borrowed a student may be unable to repay their college tuition in quickly.
What are the options for Perkins’ loan repayment?
There many options available to help pay for their student loans. Programs like deferment for bands and the consolidation can be used by graduate students to help them pay for their college education. There are many programs a graduate student can use to help settle their financial burdens.
Should a person consolidate their Perkins loans?
A person should not consolidate the Perkins loan, because in some professions based study may be eligible for loan forgiveness. If a person is involved in teaching medicine or the military, they do have the option to apply for loan forgiveness on the Perkins loan. If they were to consolidate the Perkins loan, they would lose this option of loan forgiveness. Therefore, it is not wise for a person to consolidate all their loans, until they can figure out if they are eligible for a loan forgiveness program.
In conclusion, a Perkins loan is one of the best loans a low-income student has available to them. Please visit our homepage www.istudentloan.com to apply for