Rating: 5. Reviewer: Student Loans in the United States - Item Reviewed: Let's find out about Federal Perkins Loans for Your Education - Support by: Student Loans in the United States. Student loans in the United States presents info about student loans in the USA for financial assistance used to help students access higher education - Location: New York, NY, USA.
Let's find out about Perkins Federal Loans. The Federal Perkins loan is a low-interest loan for undergraduate and postgraduate students. The interest rate for Perkins loans is 5%. Your school is a lender. The loan is made with government funds, and your school contributes a part. Pay Perkins loans to your school.
Can I cancel the loan if I change my mind, even though I have signed an agreement that agreed to the loan terms?
Yes. Your school must notify you in writing every time your account is credited. Your school must notify you no earlier than 30 days in advance, and no later than 30 days after your account is credited. You can cancel all or part of your loan within 14 days after you receive a notification, or on the first day of the payment period (whichever is newer). To refuse funds made directly by check, return the check.
Student Loans in the United States | Federal Perkins Loans
How much can I borrow?
You can borrow up to:- Available for every year undergraduate study worth $5,500. The total amount allowed for undergraduate students is $27,500.
- There are $8,500 available for each postgraduate / professional study year. The total amount allowed for graduate / professional students is $60,000, including the Perkins Federal Loan that you borrow as a graduate.
Apart from interest, is there a fee for taking out a loan?
No, there is no fee for taking out a loan. If you miss a payment, make a late payment, or make less than full payment, you will be charged. If you continually avoid payments, you will pay a billing fee above your costs.How will I be paid?
Your school will pay you directly by check, or credit your account. You will receive a loan in at least two payments throughout the academic year.Can I cancel the loan if I change my mind, even though I have signed an agreement that agreed to the loan terms?
Yes. Your school must notify you in writing every time your account is credited. Your school must notify you no earlier than 30 days in advance, and no later than 30 days after your account is credited. You can cancel all or part of your loan within 14 days after you receive a notification, or on the first day of the payment period (whichever is newer). To refuse funds made directly by check, return the check.
When do I return this loan?
If you go to school at least half a time, you have a nine-month grace period before you have to pay. The grace period starts right after you graduate, leaves school, or is registered in less than half the time. Those who are active in the military, check whether you are eligible for a longer grace period. If you are registered for less than half the time, ask the administrator of your financial assistance about your grace period. At the end of your grace period, you must start paying back your loan. You are allowed up to 10 years to pay off your loan.The US Department of Education (ED) has issued a special guideline for those who are called for active duty as a result of the September 11, 2001 terrorist attacks. If the borrower's loan is in school status, suspension status at school, or in grace period when the borrower is ordered to active duty or transferred, the loan holder must maintain the loan in that status during the active duty service borrower or reassignment period, plus the time required for the borrower to continue registration in the next regular registration period that is reasonably available to the borrower. Maintenance of loan status cannot exceed a total of three years, including the period of time required for the borrower to continue registration.
For borrowers whose loans are paid, the loan holder must provide patience (suspension of temporary payments) for the expected period of active duty status of the borrower, starting on the first day of active duty, not exceeding one year. Patience outside the initial period will require supporting documentation and written agreements by the borrower.
For more information about loan repayment options that may be available to borrowers in this situation, the loan holder must be contacted directly.
How much do I have to pay for each month?
The amount of your monthly payment will depend on the size of your debt and the length of your payment period. The table below shows typical monthly payments and total interest costs for three different 5 percent loans over a 10-year period.| Loan Amount |
No. of Payments |
Monthly Payments |
Total Interest Charges |
Total Charges |
|---|---|---|---|---|
| $4,000 | 120 | $42.43 | $1,091.01 | $5,091,01 |
| $5,0000 | 120 | $52.03 | $1,364.03 | $6,364.03 |
| $15,000 | 120 | $159.10 | $4,091.73 | $19,091.73 |
Are there tax credits available to repay this loan?
Yes, there are tax incentives for certain higher education fees, including a reduction in interest on student loans for certain borrowers. This benefit applies to federal and nonfederal loans used to pay for post-secondary education. The maximum reduction is $2,500 per year. IRS 970 publication, Tax Benefits for Higher Education, explain this credit and other tax benefits. You can find out more by contacting the IRS at 1-800-829-1040. TTY callers can contact 1-800-829-4059.Let's find out about Federal Perkins Loans for Your Education.
For more reference about this post, find it on Google, Bing, Yahoo.
Share this post to your friends on social media at:
Student Loans in the United States was built by Student Loans Blog, a blog which dedicated to help United States students get loans for their educations in the US.
