Apply For Federal Perkins Student Loan Program – Interest Rate
By Guest Writer Natalie Aranda:
When it comes to furthering your education, you must have student loans to do it. It is rather simple to get extra funding to cover your school costs when scholarships and grants do not add up to enough funding. There are student loans out there for you to apply for as well as private loans and loan consolidation if you need it.
Student loans are available through the federal government and they are the biggest source when it comes to education loans. The most popular federal loans are Federal Stafford loans, Federal Perkins Loans, and Federal Parent Loans for Undergraduate Students or PLUS. The Federal Stafford Loans are available to both graduate and undergraduate students. The Federal Perkins Loans are given by colleges to those who need it the most and these loans require no payment of interest while the student is attending school. For more information about the best Stafford loan lender, see elsewhere on this site.
Plus Loans
PLUS student loans are low interest and are available through the financial aid office of the school your student is attending or through the Sallie Mae foundation. This student loan covers all expenses, including room and board and books, which you as a parent were going to be financially responsible for. Two programs are responsible for federally funded loans. One is the Federal Family Education Loan Program in which the lender can be your school or bank. The other program is the William D. Ford Federal Direct Loan Program where the lender is the U.S. Department of Education.
Private Student Loans
Private student loans are available to you when a scholarship, grant, or federal loan falls short of your tuition costs and other expenses like books or living. They are also called alternative loans. A private student loan is not sponsored by the government and therefore no federal papers will be needed to be signed by you. It is a loan that is offered through a bank or other financial institution. To obtain this type of student loan, credit is reviewed by each lender from you, your parent(s), and in some cases, a co-signer may be needed.
Sallie Mae
The Sallie Mae program offers a private loan program for both graduates and undergraduates. Other private student loans include MEDLOANS and MBA LOANS. Loan consolidation is a great move when you have several loans to pay off.
When you consolidate, your student loans with their various repayment schedules can be condensed down into one simple payment. An FFEL consolidation loan will give you a one-month payment option and they will contact credit bureaus and notify them that you have a zero balance. You must be in repayment of your defaulted loan with three on time payments to be able to obtain a FFEL student consolidation loan.
Perkins loan application man asked:
So I recieved my Financial aid reward for college and was offered a perkins loan and a subsidized direct loan. My question is what is the difference and if I were to choose only one which one would be better. both are of the same amount.
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mz_diva_1 @ 2:12 am
Home Improvement Loan Interest Rate
If I’m not mistaken, an unsubsidized loan is one that you pay the principle and the interest. The subsidized loan is one that the government pays the interest. HTH
NotAnyoneYouKnow @ 12:57 am
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The Perkins loan has the lowest interest rate of any federal financial aid loan – the fixed rate on the Perkins is 5%, versus 6% for the subsidized Stafford that you were also offered. The Perkins is offered to students who are judged to have “exceptional” need.
The Perkins is also superior because there are no “origination” fees associated with it. The full amount of the loan will be credited to your student account, unlike the Stafford, which has a 2% origination fee. This is because the lender on a Perkins loan is your school, rather than a bank.
The only possible downside of the Perkins (compared to the Stafford) is that the repayment period on a Perkins loan is 10 years, whereas the repayment on a Stafford ranges from 10 to 25, depending on the amount borrowed.
I hope that helped – by the way, the Stafford is an excellent loan, too – far better than anything you could get from any non-governmental (private) source.
Good luck!
Found-1 @ 10:39 am
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The Perkins loan will be better, choose that one. Better interest and also many more options on getting it discharged / forgiven (so you don’t have to pay it back) later.
See the discharge options for both on pages 34 and 35.
Bruce @ 10:49 pm
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The Perkins loan will be better, choose that one. Better interest and also many more options on getting it discharged / forgiven (so you don’t have to pay it back) later.
See the discharge options for both on pages 34 and 35.