The Federal Perkins Loan Program provided money for college or career school for students with financial need. … Loans made through the Federal Perkins Loan Program, often called Perkins Loans, are low-interest federal student loans for undergraduate and graduate students with exceptional financial need.
In respect to this, are federal Perkins loans still available?
The federal Perkins loan program, which provided low-interest loans to students with exceptional financial need, expired in 2017. … 30, 2017, new Perkins loans are no longer available. They featured a fixed 5% interest rate and, at nine months, a longer grace period than other student loans.
Then, do I have to pay back Perkins Loan?
If you are attending school at least half-time, then repayment will begin nine months after you graduate, leave school, or drop below half-time status.
How do I know if I have a Perkins loan?
You can also call the Federal Student Aid Information Center, 1-800-4-FED-AID, TDD 1-800-730-8913. The Center’s counselors can help you figure out what types of loans you have. Federal loan promissory notes and applications will state the name of the federal loan program (Stafford, PLUS, Perkins, FFEL, William D.
Is a Perkins loan a private loan?
A Perkins loan is a type of federal student loan based on financial need. A Perkins loan is a subsidized loan, meaning that the federal government pays the loan’s interest while you are in school. Under federal law, the Perkins loan program ended and are no longer available to students.
Is Federal Perkins loan a government loan?
A Perkins Loan was available to undergraduate, graduate, and professional students until Sept. 30, 2017; the program has since expired. The Perkins Loan is a subsidized loan, meaning the federal government pays the loan’s interest while the borrower is in school.
What are the benefits of a Perkins loan?
Perkins loans let you keep the total principal balance without having to pay extra fees. Interest rates are fixed, meaning they don’t change over time. They’re 5%, which is lower than some other federal loan types. Payments may be made monthly or quarterly.
What happens if you default on a Perkins loan?
If you default on a Perkins loan, it is usually the school that will come after you to collect. In some cases, the school will assign a Perkins loan to the Department of Education. … Schools are allowed to extend the repayment period due to a prolonged illness or unemployment.
What is the interest rate on a Perkins loan?
Who is eligible to receive the Perkins Loan?
To be eligible for a Perkins Loan, applicants must be all of the following: An undergraduate, graduate, or professional student with exceptional financial need. Enrolled full-time or part-time. Attending a school that participates in the Federal Perkins Loan Program.
Why did my loan go into forbearance?
You can request a general forbearance if you are temporarily unable to make your scheduled monthly loan payments for the following reasons: Financial difficulties. Medical expenses. Change in employment.