It has become inevitable to apply for loans when the students need to pursue higher studies. Fortunately for them, there are loan offers from the federal government with lower interest rates and flexible terms, to help them focus on their academic career without financial stress. Stafford loans, PLUS loans and Federal Perkins loans are some of the types of loans which are highly beneficial to the students while in college. The features and the terms of each type of these loans vary and however, the students can decide on the option according to their needs and eligibility.
Both the graduates and undergraduates are eligible for Federal Perkins Loans. The loans are sanctioned by the respective institutions as per the availability of money. The rates of interest on Perkins loans are lower than in other loans as the intention of the loan is to help the financially needy people. The rate of interest associated with Perkins loans is fixed and the borrower is expected to repay the loan as specified. There is the possibility to cancel a part of the loan if the borrowers volunteer their services for the betterment of the society. Jobs in certain military, public and teaching fields get the borrowers the chance to cancel their loans fully.
The Eligibility Criteria
The students should be in a financially grave situation. The student should be the citizen of U.S or must be a permanent resident of U.S or must be an eligible non- resident. The applicant should be an enrolled student of the institution that participates in the personal loans for bad credit program. The eligibility also includes satisfactory grades and good credit history. The limit for the loan amount varies as per the courses and needs of the students and also depending on the availability of finance for the purpose. The maximum term of the Federal Perkins loan is 10 years as per the amount availed.
The repayments can be either monthly or quarterly. Once the students get graduated or leave the school before completing at least half of the enrollment time, a grace period of nine months is allowed. However, the grace period is extended for those in military services. There is no originating fees or penalties involved in case of settling the loans earlier than the agreed time. The government supports the students with payment of interest amount while the students are still in college. Since Federal Perkins loans are cheaper than any other government loans, the demand is more for this offer.
The application can be submitted online as well. The Free Application for Federal Student Aid can be filled online and submitted for quick processing of loans. For offline submission, the students can get the FAFSA forms from the high school in which the student studies, or from the local library or post secondary school. The students who have availed the loans in the previous year can renew the loans with no credit check using the Renewal FAFSA forms and updating the related information. The Federal Student Aid Information Center can be approached for any guidance regarding Federal Perkins Loans.