Federal Perkins Loan

The Federal Perkins loans are the loans having a very low interest rate of almost 5 percentages. This is because it is designed for the students who are graduates or undergraduates and are in exceptional need of financial aid. Like the PLUS loan this program is also only for those schools who have taken part in it. Here the schools have to enroll for the program with the U.S. Department of Education. Here the schools act as a lender and the students have to make repayment to the school or school's loan receiver. The fund allotment to the students depends upon the fund availability with the school and the financial need of the student.

Receipt of loan:

The student receives the loan in the form of payments to the school fees and the room and other school charges. Thus there is no money payment to the student at the time of approval of loan, as the loan amount is applied for the school expenses and charges. But after such application of the loan amount, if there remains any amount with the school than such amount is given to the student as a refund which can be used by the student for the repayment of other educational charges/expenses.

Is there any provision to cancel the loan?

One must be wondering that after the loan has been applied for and it is approved, whether it is possible to withdraw from such loan? The answer is yes. Since it is for the benefit of the students this provision of anytime withdrawal is present in this kind of loan. The student can ask for the withdrawal before the disbursement of the loan amount in to the school fees and charges. It can also be withdrawn after the amounts have been applied but only within a specified time limit which will be specified in to the additional information provided by the school.

When the repayment of loan becomes due?

Since it is a loan which is specifically for the real needy students, the terms for the repayment of the loan are also liberal. A student attending at least half time is required to repay the loan amount within nine months from the end of the graduation, leaving the school or drop below half-time status. In case of attending even less than the half-time school than the school should be contacted to know the policy in such a case for the grace period of the loan repayment.

With such a low interest rate and longer grace period, it is truly helpful for the students who have real financial difficulty in pursuing their dreams of becoming a graduate.