The Perkins Loan program is designed to provide educational funding at excellent interest rates (usually the interest rate is 5% or less). Students who have "exceptional" financial needs for college funding may qualify for a Perkins Federal Loan. These loans are reserved for students whose families have the greatest demonstrated financial needs as determined by their Federal Application for Federal Student Aid (FAFSA). Therefore, it is highly important for students to complete the FAFSA as soon as absolutely possible in order to be considered for a Perkins Loan.
A Perkins Loan is very similar to a Stafford subsidized loan; as it also does not accrue interest as long as the student is enrolled at least half-time in an accredited university or college. However, there are some additional benefits of a Perkins Loan. The most important differences between a Perkins and a Stafford Loan is that a Perkins Loan has no administrative fees associated with applying for or receiving your loan, as well as a longer grace period. A longer grace period before repayment means that graduates may have additional months to secure professional employment before the payments for the loan become due.
RequirementsAccredited schools will receive a set amount of funding for Perkins Loans, and the school will then divide up the Perkins Loans funds as they deem appropriate, according to the current needs of their students. Once the loans have been distributed, they can not be replenished until the following academic year. Therefore, it is vital that eligible students complete their FAFSA along with any other financial aid forms required by their particular university in order to receive as much aid as possible.
Once you have been approved for a Perkins Loan, you will receive your money in at least two installments throughout the school year. Your university or college may either issue you a check for the amount of the installments, or they may apply the funds to your university account to cover your academic expenses.