August 30, 2007
by Paulina Mis
When it comes to loans, this is the real deal. The Perkins Loan program is a government
and school funded program with the smallest interest rates, only 5%. Compared to
other low-interest government loans and their high-interest private counterparts,
the Perkins Loans are ideal for students who need on-the-spot funds.
Of course, the best of loans are not available to all. Seeing as these loans have
the lowest rates, they are usually reserved for the neediest students. Luckily,
needy graduate students are also eligible. They may have gotten the cold shoulder
when it came to Pell Grants, but graduates still have options when it comes to low-rate
Even though the government puts forth a large amount of funding for Perkins Loans,
the loans are still considered campus-based. This is because schools match some
government contributions and are in charge of loan administration. They even have
to apply to participate. Not to worry, most schools do participate in the program.
Approximately 1,800 schools across the country provide students with financial aid
in the form of Perkins Loans.
Students who are interested in the Perkins Loan should submit their FAFSA. Whether a student qualifies and how
much aid they qualify for is based on their determined financial need and their
school of choice. Undergraduates with the greatest need may be eligible for up to
$4,000 in yearly aid; graduates may receive up to$6,000. Over the course of their
education, undergraduate may borrow up to $20,000 and graduates can borrow up to
$40,000 (this includes undergraduate loans.) Thankfully, if these loans add up,
students have up to 9 months after graduating, withdrawing or dropping below part-time
status to find repayment funds.
Perkins Loans are a good option for quick aid, but before applying, students should
take advantage of free funding options. Performing a free scholarship and grant
search at Scholarships.com
and browsing through school websites may eliminate the need for loans altogether.