Edvisors Private Student Loans

Scholarship News

Perkins Loan Availability Fading


April 3, 2008
by Scholarships.com Staff
The credit crunch and its negative impact on student borrowers is no longer news.   Both FFEL and private lenders have been responsible for financial tensions, and now there’s more to gripe about. Numerous colleges have been complaining that they are not receiving sufficient funding to cover their students' Perkins Loan needs.

The credit crunch and its negative impact on student borrowers is no longer news.   Both FFEL and private lenders have been responsible for financial tensions, and now there’s more to gripe about. Numerous colleges have been complaining that they are not receiving sufficient funding to cover their students' Perkins Loan needs.

Perkins Loans are awarded to students by colleges and universities, but the government provides much of the funding. Because these loans are restricted to students who show particular financial need, shortages will affect students whose families have the lowest incomes most.  Perkins Loans have the cheapest interest rates and the most lenient payment options as far as government loans go, as far as most student loans go. Students are asked to pay a 5 percent interest rate on Perkins Loans as opposed to 6.8-7.22 percent on federal Stafford Loans and 7.9-8.5 percent on federal PLUS Loans. Those who turn to private lenders can expect even higher rates.

Due to a poor loan market and a lack of government subsidies, many schools have been forced to cut back on both the number and the size of their Perkins Loans. According to U.S. News & World Report estimates, about 50,000 students who would have qualified for Perkins Loans last year will not qualify for them this year.  Those who do qualify may still see their loan limits diminish. Technically, students can borrow up to $4,000 in Perkins Loans (though the number may be lower for those deemed less needy), but certain colleges will be decreasing the maximum funds available to students. 

This has left families worried that they may be forced to rely on private student loans after reaching their federal loan limits.  After dealing with increasing default rates, both Federal Family Education Loan (FFEL) lenders and private lenders have been forced to make loans more difficult to receive and less appealing to borrowers. Major lenders are becoming sticklers about eligibility criteria and have been cutting back on the benefits offered to students with good paying records.  

Students who are no longer eligible for Perkins Loans still have financial aid opportunities. By applying for college scholarships and grants, students may find college funding they do not have to repay. Before considering loans, students should conduct a free college scholarship search to find awards they may be eligible to receive. It is also important to fill out a FAFSA each year. Just because an individual is not eligible for Perkins Loans does not mean they will not be awarded free money in the form of Pell, FSEOG, SMART or TEACH grants.

College is expensive, Scholarships.com is completely free. Pay for your college education with as much free college scholarship money as possible. By applying to all the awards you qualify for, you can be sure to not miss a single opportunity in paying for your college expenses - including tuition, fees, room and board. Get matched to college scholarships instantly and start applying today by conducting a free college scholarship search at Scholarships.com.

Discuss

Share your thoughts and perhaps thousands of students will benefit from your unique insight on the subject!



If you can read this, don't touch the following fields


 
The coronavirus pandemic has affected nearly everything about college – and for some schools, that includes tuition. Beyond tuition freezes or removing application fees, these colleges have gone one step further in reducing costs for their students. A tuition discount recognizes not only the economic difficulties many students and their families are facing due to COVID-19, but also acknowledges that mostly or entirely online classes are generally not perceived as being worth the same amount of money as a full residential college experience. Some of these institutions also plan to offer additional scholarship funding to the students who need it most.

Schools Offering Tuition Discounts This Fall

August 14, 2020 11:41 AM
by Izzy Hall
The coronavirus pandemic has affected nearly everything about college – and for some schools, that includes tuition. Beyond tuition freezes or removing application fees, these colleges have gone one
You may be surprised to learn that many of your fellow college students struggle with hunger. About 1 in 5 students are affected by food insecurity. In a normal time, not getting enough to eat can impact students’ grades, health and ability to finish their degrees. And a loss of campus jobs, housing and meal plans due to the pandemic puts more students in danger of going without the food they need. That’s where student-run food banks and pantries come in.

Student-Run Food Banks Making a Difference on Campus

August 11, 2020 10:57 AM
by Izzy Hall
You may be surprised to learn that many of your fellow college students struggle with hunger. About 1 in 5 students are affected by food insecurity. In a normal time, not getting enough to eat can
Philanthropist MacKenzie Scott, founder of the Giving Pledge charity, has been looking to donate her considerable wealth to worthy causes. Among the charities and institutions where she has donated money are a number of Historically Black Colleges and Universities (HBCU), including Howard University and Tuskegee University.

Charitable Donations to HBCUs from Noted Philanthropist

August 6, 2020 11:29 AM
by Izzy Hall
Philanthropist MacKenzie Scott, founder of the Giving Pledge charity, has been looking to donate her considerable wealth to worthy causes. Among the charities and institutions where she has donated
The federal work-study program is a way in which college students can work part- or full-time while simultaneously attending school in order to help pay for college-related expenses. The program, available at the undergraduate, graduate and professional level, may face some changes amid the novel coronavirus pandemic.

College Work-Study Jobs Face Changes During Pandemic

August 4, 2020 4:04 PM
by Susan Dutca-Lovell
The federal work-study program is a way in which college students can work part- or full-time while simultaneously attending school in order to help pay for college-related expenses. The program,
Senator Lamar Alexander of Tennessee, the current chairman of the Senate education committee, has recently proposed the Student Loan Repayment and FAFSA Simplification Act, a piece of legislation that would allow students with no income to forgo federal student loan repayments. His recommendations, which he developed with bipartisan support, would also simplify the FAFSA and reduce the number of federal loan repayment options from nine to two.

Senator Outlines Student Loan Relief in New Proposal

July 30, 2020 11:49 AM
by Izzy Hall
Senator Lamar Alexander of Tennessee, the current chairman of the Senate education committee, has recently proposed the Student Loan Repayment and FAFSA Simplification Act, a piece of legislation
Have your financial circumstances changed due to COVID-19? You’re not alone. Many students and their families have faced unemployment, reduced job hours and general loss of economic stability in the wake of the pandemic. And as the FAFSA determines your Expected Family Contribution (EFC) based on income from the previous year, students may have greater financial need now than they did when they initially filed for federal aid. Unfortunately, the deadline to submit the FAFSA passed at the end of June. However, it is not too late to appeal your student financial aid from your chosen institution.

It’s Not Too Late: Guide to Appealing Financial Aid

July 28, 2020 1:20 PM
by Izzy Hall
Have your financial circumstances changed due to COVID-19? You’re not alone. Many students and their families have faced unemployment, reduced job hours and general loss of economic stability in the
The FAFSA is a critical tool for both applying to colleges and applying to scholarships – in fact, need-based scholarships often require that you submit the FAFSA as part of your application. So, in a time of economic uncertainty caused by the coronavirus pandemic, it’s surprising to learn that many low-income and minority students did not submit the FAFSA for the upcoming academic year even though they would’ve been eligible for federal aid. At Scholarships.com, we don’t want students to miss out on any form of college financial aid. Applications for the next academic year will open soon, so get prepared by reviewing these FAFSA facts.

The FAFSA: Why You Should File (And How!)

July 23, 2020 3:47 PM
by Izzy Hall
The FAFSA is a critical tool for both applying to colleges and applying to scholarships – in fact, need-based scholarships often require that you submit the FAFSA as part of your application. So, in
While the CDC has not finalized their guidelines for reopening schools for the Fall 2020 semester, the New York Times discovered an unreleased document in which the organization reviews the safety protocol of a handful of institutions of higher education. How are the reviewed schools planning on confronting the coronavirus on campus this fall?

CDC Reviews Higher Ed Reopening Plans for Fall 2020

July 21, 2020 11:47 AM
by Izzy Hall
While the CDC has not finalized their guidelines for reopening schools for the Fall 2020 semester, the New York Times discovered an unreleased document in which the organization reviews the safety