Perkins School Loans: An Introduction

Perkins school loans were named after the Senator Carl Perkins from the state of Kentucky. They are a low-ceiling, direct-to-student, low-liability education loan that has benefited numerous students in US universities.

Perkins loans are ideal for students who need only moderate school loans to tide over the financial shortage during education years. The ceiling on funds disbursed is quite low. You can borrow a maximum of $6000 per year, and the total borrowed sum must not exceed $40000 over the period of your education.

How to Apply

In order to apply for Perkins school loans, you must fill out the FAFSA form, the full name for which is Free Application for Federal Students Aid. Perkins is a need-based loan, which means that government agencies shall assess the level of your actual needs before deciding on the final amount disbursed.

Disbursement and Repayment Options

The Perkins school loans are disbursed by your educational institution, mostly from government funds set aside for this purpose. You make your repayments directly to your school. Your repayments need not start until 10 months after your graduation or after your drop out of school.

The maximum tenure of the Perkins school loans is ten years, within which period you must pay back the borrowed sum. Since the loan is fully guaranteed by the federal government, and the tenure is relatively short, the rate of interest is only 5% per annum.

Perkins School Loans: Uses and Abuses

The Perkins school loans seem to be an excellent option for students with moderate needs, because of its low rate of interest. However, George W Bush and his government have decided that it is an unnecessary and repetitive program which serves no adequate purpose. According to the federal budget for the coming financial year, Perkins school loans shall become obsolete after 2007.

So if you're looking for low-liability low-ceiling school loans, the time to apply is now!