Federal Perkins Loan is provided by the government through the U.S. Department of Education for students in order to pursue their under-graduation or post-graduation studies. These loans are issued by the school and from the government funds however, you will have to pay back the loan to your school. There is no fee taken for issuing the loan. But if you do not pay back the loan, repay fewer amounts or make delayed payment then you would be penalized by the lender. Consequently skipping payments will also lead you to pay collection costs at http://www.prnewswire.com/news-releases/bad-credit-loans-up-to-5000-launched-via-top-lender-242197291.html .
Though Perkins Loan helps lot of students who are unable to pursue studies because of their financial background, not all can apply for these loans. The eligibility criteria for Perkins loan are listed as follows:
- Admitted as a student for a full time or part time degree program.
- Should be a citizen of the U.S, a permanent resident or should hold non-citizen status.
- Should have showed fair academic betterment.
- Should not possess history of unpaid debts on other educational loans and grants in the past.
- Should satisfy all Selection requirements to qualify for the loan.
Duties when you borrow Perkins Loan
- You should endorse a promissory note agreeing to the terms and conditions associated with the loan program.
- You should pay back the loan even if you quit the study program in between.
- Even if you are not satisfied with the education provided at your school, you should repay the loan.
- Pay back the loan amount according to the agreement schedule which was endorsed before you accepted the loan.
- You should inform the Federal Perkins no credit check loans Coordinator about your graduation, withdrawal, absence, transfer, name and address change, etc.
- Display appropriate documents about your delayed payments and loan cancellation.
Privileges of Federal Perkins Loan
- The promissory note which you endorse should be returned to you when the loan is fully paid.
- A mercy period is granted for the repayment and that should be shown in the agreement.
- You should be educated with all the details regarding your principle amount, interest rate, penalty charges if you fail to repay the debt, etc.
- The list of loan cancellation and delayed payment rules should be given if you opt.
- The loan repayment terms, duration, etc. should be known to you.
- Most importantly, you should have knowledge regarding where you repay the loan.
- Proper reasoning about penalty-free advance.
Calling Off of Perkins Loan
Perkins loan can be cancelled under some circumstances which are legally accepted by the government as well as the lending medium (i.e. the school or university). The loan can be called off only if the borrower qualifies for the cancellation procedure listed below:
- Death of the student.
- If you join a non-profit institution, or serve as a law enforcement officer.
- If you become physically challenged.
- If you work in a government organization and serve the country.
- If you work as a doctor, nurse or an allied health professional serving the public.
- If you work as faculty in a low-income school.