 Free Online Articles Directory |
|||||||
Home Page  Finance Do Not Consolidate Perkins Loan |
|||||||
 |
Do Not Consolidate Perkins Loan
Federal Perkins Loan formerly called the National Defense and National Direct Student Loan has s a low-interest rate of (5 percent). Perkins loans are for undergraduate and graduate students with "exceptional" financial need. The loan is a Financial Aid from the US Department of Education. Your school contributes a share to this loan. The lender is your school. You should pay it back to the school and not to the government. Perkins loans are awarded depending on the applicants needs and also on the availability of the funds. Perkins Student Loans are awarded to persons who apply for financial assistance to attend the university. Your school will either pay the loan amount to you directly either by check or credit to your account. Usually you'll get the loan in two installments during the academic year. The amount you can borrow depends on the schools funding level and on the level of your need. For an undergraduate it is usually $4000 for each year and the total amount up to $20,000. For graduate or for professional study it is usually $6000 with a total of $40,000 which includes Perkins loan you borrowed as an undergraduate. Eligibility criteria for Perkins loans • You should be enrolled in an eligible school at least during half time of the program. • You should be an US citizen, permanent resident or eligible person with non citizen status. • You should have satisfactory academic improvement. • You should not have any unresolved defaults or overpayments owed on Title IV educational loans and grants. • To get this loan you must complete the Free Application for Federal Student Aid (FAFSA). • You should start repayment nine months after you leave school or graduate. • Your monthly payment will depend on the total amount that you borrowed and the period of the amount. • If you qualify as a low income individual during the repayment period, the repayment period can be extended for up to an additional 10 years and adjusted according to your income. It has low interest rate and a lot of flexibility in terms of repayment. There is not prepayment penalty for paying Perkins loan ahead of schedule. As against a Stafford loan Perkins loan do not have any fees and have a longer grace period. Perkins loan cannot be bought by another lender but can be included in a consolidation loan. They are not combined but are repaid to each school separately. Should you consolidate a federally backed Perkins loans? My answer to this question is an emphatic no. Some lenders would advice you to consolidate because it would enable them to make more money if you consolidate a higher loan balance with them and include the Perkins loan. For Perkins loan the government pays the interest and if you consolidate a Perkins loan you will loose that subsidy. The interest rate on Perkins loan is fixed at 5% and it won't go up by July 1 st, when the other loans like Stafford loans rise. Perkins loan gives a nine month grace period after they graduate and not six months like some of the other loans and you will forfeit a longer grace period. Many Perkins loan can be cancelled under various conditions including if the student later becomes a teacher at an elementary or high school that serves low-income families. Perkins loan can be cancelled up to 100% in the event of the loan holder's death .If you become permanently and totally disabled after you receive this loan, and submit a properly documented written request, the school will cancel the entire loan. You can also cancel a part or full loan in many conditions like if you are a full time law enforcement officer for an eligible local, State or Federal law enforcement agency; or a full time corrections officer for an eligible local, State or Federal corrections agency, A full time nurse providing health care services, or a full time medical technician providing health care services, A full time employee of an eligible public or private nonprofit child or family service agency who is providing or supervising the provision of services to high-risk children who are from low-income communities and the families of such children. Among the entire educational loans available Perkins loan is considered to be the best.
Rate this Article:
Current: 0 / 5 stars - 0 vote(s).
Article Tags: Perkins Loan, Perkins Student Loan, Federal Perkins Loan, Perkins Article Source: http://www.articlesbase.com/finance-articles/do-not-consolidate-perkins-loan-43709.html About the Author:
Anita Cherry is a postgraduate in economics and provides impartial opinion regarding financial matters. For more information on making money and saving go to ">http://www.yourmoneyinfo.com/m/perkins-loan.htm\"> Perkins Loan
Related ArticlesIf You Are Planning To Get A Student Loan, You Need To Read This Federal Perkins Loan: Overview Student Loan Advice And Information Deferred Student Loans - What You Must Know!! Federal Student Loans - Amazing Value For Students Who Need Financial Help Options and Guide To Defaulted Student loans Free College Money Increasing, Student Loans Tightening College Student Loans : Federal and Private Loans Got a Question? Ask.Ask the community a question about this article:Frequently Asked Questions I heard the expression "green horses" but I don't ... Linkage between number of kids and economical status. Blood diamonds - third world countries situation Green Q&A Powered by:
 Latest Finance ArticlesOverseas Property Buyers Loving the Credit Crunch Net Operating Income and Real Estate Analysis Financial Security Planning in Uncertain Job Climates 3 Things You Need to Know About Secured Credit Cards Stock Market Volatility Helps In Making Money Using Stocks Tips On How To Diversify Your Risk In The Stock Market Making the Most of Your Business Banking Relationship 10 Sound Budgeting Tips to Ensure Financial Freedom More from Anita CherryHealth Benefits Of Green Tea Info On Cord Blood Banking What Is Green Tea? Hoodia Diet Pill That Work Natural Cure For Diabetes |
|
|||||
|
Article Categories
|
|||||||
 Sign up for our email newsletterReceive updates, enter your email below
Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2008 Free Articles by ArticlesBase.com, All rights reserved. (0.68, 16) |
|||||||
