The Federal Perkins Loan program has been providing low-interest loans to students with exceptional financial need for over 50 years. Recently, the program was extended with the passage of the COVID-19 relief bill, which included $35 million in funding to support the program. This is great news for students who may be struggling to finance their education, as these loans offer a range of benefits, including no collateral requirements.
Unlike many other types of loans, Federal Perkins Loans do not require collateral, such as property or assets, as security. This means that students who may not have a lot of assets or a credit history can still qualify for this type of loan. Additionally, the interest rates on Federal Perkins Loans are typically lower than those of other loans, which can make them a more affordable option for students.
In order to qualify for a Federal Perkins Loan, students must demonstrate exceptional financial need. This is typically determined through the Free Application for Federal Student Aid (FAFSA), which takes into account a student’s family income, assets, and other factors. Once a student is determined to have exceptional need, they can apply for a Perkins Loan through their school’s financial aid office.
One of the benefits of the Federal Perkins Loan program is the flexibility it offers in terms of repayment. Students typically have a grace period of nine months after graduation before they are required to begin making payments. Once payments begin, students have up to ten years to repay the loan, depending on the amount borrowed. Additionally, if a student experiences financial hardship or enters a public service career, they may be eligible for loan deferment or forgiveness.
Overall, the $35 million in funding for the Federal Perkins Loan program is a welcome boost for students who may be struggling to finance their education. With no collateral required and low interest rates, these loans can be an affordable option for those who demonstrate exceptional financial need. If you are a student in need of financial assistance, be sure to speak with your school’s financial aid office about the availability of Perkins Loans and other forms of aid.