Perkins Loans may be awarded to students who are eligible for Federal Student Aid (most domestic students) and have demonstrated financial need. Undergraduates: $5,500 per award year, up to $27,500 total. Students who have not yet completed two years of undergraduate work are only allowed to borrow up to $11,000.
Likewise, are Perkins loans eligible for PSLF?
Loans you received under the Federal Perkins Loan Program or the Federal Family Education Loan Program do not qualify for PSLF, but they may become eligible if you consolidate them into a Direct Consolidation Loan.
Keeping this in consideration, how do I know if I have a Perkins loan?
You can also call the Federal Student Aid Information Center, 1-800-4-FED-AID, TDD 1-800-730-8913. The Center’s counselors can help you figure out what types of loans you have. Federal loan promissory notes and applications will state the name of the federal loan program (Stafford, PLUS, Perkins, FFEL, William D.
How is need based aid determined?
Need-based aid is financial aid that you can receive if you have financial need and meet other eligibility criteria. … For instance, if your COA is $16,000 and your EFC is 12000, your financial need is $4,000; so you aren’t eligible for more than $4,000 in need-based aid.
How much can you borrow on a Perkins loan?
Students could borrow up to $5,500 per year for each year of undergraduate study—up to $27,500—and $8,000 for each year of graduate or professional study—up to $60,000, including any undergraduate Perkins loans. The interest rate for Federal Perkins Loans was 5% for borrowers, with a 10-year payback period.
Is nelnet private or federal?
Nelnet is a federal student loan servicer working on behalf of the U.S. Department of Education, the government agency that lends you or your child student loans.
What happens if you default on a Perkins loan?
If you default on a Perkins loan, it is usually the school that will come after you to collect. In some cases, the school will assign a Perkins loan to the Department of Education. … Schools are allowed to extend the repayment period due to a prolonged illness or unemployment.
What is the difference between Perkins loan and Stafford?
Eligibility. Both Stafford and Perkins loans provide low-cost loan options for undergraduate, graduate and professional students. … Unsubsidized Stafford loans are available to all students regardless of financial need. Perkins loans are awarded to students exhibiting exceptional financial need.
What replaced Perkins loans?
Nothing really. Students with financial need must rely on Pell Grants, Federal Supplemental Educational Opportunity Grants (FSEOG), college aid awards, work-study, subsidized federal student loans, or private loans.
What type of loan is a Perkins loan?
Undergraduate and graduate students who demonstrated exceptional financial hardship were eligible for the Perkins loan until Sept. 30, 2017. As with other forms of federal financial aid, students needed to first fill out the Free Application for Federal Student Aid, or FAFSA.
What type of student qualifies for a Perkins loans?
To be eligible for a Perkins Loan, applicants must be all of the following: An undergraduate, graduate, or professional student with exceptional financial need. Enrolled full-time or part-time. Attending a school that participates in the Federal Perkins Loan Program.
Who is the lender under the Federal Perkins Loan Program?
A Federal Perkins Loan is a low-interest loan for both undergraduate and graduate students. The interest rate for a Perkins loan is 5%. Your school is the lender. The loan is made with government funds, and your school contributes a share.
Why did my loan go into forbearance?
You can request a general forbearance if you are temporarily unable to make your scheduled monthly loan payments for the following reasons: Financial difficulties. Medical expenses. Change in employment.
Why would you want a Perkins loan?
The Federal Perkins Loan Program provided money for college or career school for students with financial need. … Paying back your Perkins Loan: If you are attending school at least half-time, you have nine months after you graduate, leave school, or drop below half-time status before you must begin repayment.