What are perkins loans

what are perkins loans

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Student loan options can be overwhelming at first glance. But when it comes to federal student loans, there are just a few options.

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Subsidized Stafford Loan

The subsidized Stafford Loan is available to students who qualify for need as determined by the FAFSA. Students must be a U.S. citizen or eligible non-citizen as well as have a high school diploma or GED. Like most federal student loans, interest does not accrue while the student is in school. If students qualify for a subsidized Stafford Loan, it will be stated on their award letter notification along with the amount for which they can borrow.

Perkins Loan

The Perkins Loan is another federal loan option that is for needy students. Again, students must be a U.S. citizen or eligible non-citizen as

well as hold a high school diploma or GED. Again, interest does not accrue with the Perkins Loan, and students will find out whether or not they qualify as well as for how much when they receive their award letters from colleges.

Finally, the unsubsidized Stafford Loan is a little different from the other federal loans. For both the subsidized Stafford and Perkins Loans, students must qualify for need as determined by the FAFSA. However, the unsubsidized Stafford Loan is available to any student, regardless of need. Also, unlike the other federal loans, interest accrues while the student is attending school. Again, if students want to apply for the unsubsidized Stafford Loan, they must complete the FAFSA.

Students can also qualify for a federal student loan consolidation after graduating from college or graduate school.

Source: www.finaid.org

Category: Credit

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