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Federal Perkins Loans for Students | All the Vital Information You Need

Filed in Scholarships Update by on October 28, 2020

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Federal Perkins Loans for Students | All the Vital Information You Need

Federal Perkins Loans for Students: Financial constraint shouldn’t be the reason you drop your academic dreams. Because there are Federal loans to help you sort out your educational financial challenges.

One of these loans is the federal Perkins Loans for students. Thus, any student with financial challenge will be glad to read this article. To get more details about this loan, keep calm an read on.

Also, specifically, in this article you shall read about:

Federal Perkins Loans for Students | All the Vital Information You Need

What is a Federal Perkins Loans?

A Federal Perkins Loan is a low-interest loan for both undergraduate and graduate students. Also, the interest rate for a Perkins loan is 5%. And your school is the lender. However, the loan is made with government fund. But your school contributes a share. Thus, your’re to repay Perkins loans to your school.

Amount One Can Borrow 

Federal Perkins Loans for students gives room to borrow money. Thus, as a student, you can borrow up to:

  • $5,500 for each year of undergraduate study. However, the total amount allowed for undergraduates is $27,500.
  • Also, you can borrow up to $8,500 for each year of graduate/professional studies. However, the total amount allowed for graduate/professional students is $60,000. And this includes Federal Perkins Loans you borrowed as an undergraduate.

Tax Credits Available for Paying Back these Loans

You may ask: Are there tax credit available for paying back these loans? The answer is yes. There are tax incentives for certain higher education expenses. And this includes: A deduction for interest on student loans for certain borrowers.

Also, this benefit applies to federal and non-federal loans used to pay for post-secondary education costs. It’s pertinent you take note of this information about Federal Perkins Loans for students.

However, the maximum deduction is $2,500 a year. IRS Publication 970. Tax benefits for higher education explains these  credits and other tax benefits. However, you can find out more by calling the IRS at: 1-800-829-1040. Also, TTY callers can call: 1-800-829-4059.

How to Cancel/Repay Federal Perkins Loans for Students

How to Cancel/Repay Federal Perkins Loans for Students

It’s pertinent you take note of this information about Federal Perkins Loans for students. Federal Perkins Loans can be canceled if the borrower dies. Also, it can be cancelled if he/she becomes totally and permanently disabled. Furthermore, a loan can also qualify for cancellation under other conditions, as long as you’re not in default. But for more information, contact your financial aid office.

Also, if you serve as an enlisted person in certain specialties of the Armed Forces, note. The U.S. Department of Defense might, as an enlistment incentive, repay a portion of your student loans. Also, it’s important to note that this is not a cancellation. However, for more information, contact your recruiting officer.

Additionally, another type of repayment assistance is available through the U.S. Department of Health and Human Services’ Nursing Education Loan Repayment Program (NELRP). This helps repay student loans for registered nurses. And it’s in exchange for service in eligible facilities located in areas experiencing a shortage of nurses. Get details from NELRP, toll-free, at: 1-866-813-3753. Or visit www.bhpr.hrsa.gov/nursing/loanrepay.htm.

When to Pay Back the Federal Perkins Loans

It’s pertinent you take note of this information about Federal Perkins Loans for students. If you’re attending school at least half time, note. You have a nine month grace period before you have to pay. Also, the grace period begins right after you graduate, leave school, or are enrolled less than half time. And if you’re active duty in the military, check if you are eligible for a longer grace period.

However, if you’re enrolled less than half time, check with your financial aid administrator about your grace period. But, at the end of your grace period, note. You must begin repaying your loan. However, you’re allowed up to 10 years to pay off your loans. Also, the U.S. Department of Education (ED) has issued special guidance for those called to active duty. And this is as a result of the September 11, 2001 terrorist attacks.

Thus, if a borrower’s loans are in an in-school status, in-school deferment status, or in a grace period when the borrower is ordered to active duty or reassigned, note. The loan holder must maintain the loans in that status. And this is during the period of the borrower’s active duty service or reassignment.

FAQs About Federal Perkins Loans for Students

There are a lot of FAQs about the Federal Perkins Loans for students. However, below are some:

1. Other than Interest, is there any Charge to Take out Loans?

No. There are no fees to take out loans. But, if you skip a payment, make a late payment, or make less than a full payment, you will be charged a fee.

2. How will I be Paid?

Your school will either pay you directly by check, or credit your account.

3. Can I Cancel the Loan if I Change my Mind, Even if I’ve Signed the Promissory Note Agreeing to the Loan’s Terms?

Yes. Your school must notify you in writing whenever your account is credited. Your school has to notify you no earlier than 30 days before, and no later than 30 days after your account is credited. You can cancel all or a portion of your loan within 14 days after you’ve received the notification, or by the first day of the payment period (whichever is later). To refuse funds made directly by check, return the check.

4. Is it Ever Possible to Postpone Repayment of My Federal Perkins Loan?

Yes, under certain conditions, you can receive a “deferment” or “forbearance” on your loan, as long as the loan isn’t in default. During a deferment, you’re allowed to temporarily postpone payments, and no interest accrues (accumulates). Look under “Perkins Loans” on the Loan Deferment Summary Chart for the list of deferments available.

Now you have the information in your hands. Thus, you have the power at your will. This is because information is power. Make sure you don’t misuse this information. Make good use of this information to better your education. Good luck.

CSN Team.

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