Student Loans and the Perkins Loan II
If you are looking into applying for student loans to pay for your college tuition, you might want to look into the Perkins loan. The Perkins loan is a loan with a low interest rate that is set at only 5%. This loan can be paid back for you if you are a special education teacher or a nurse that is practicing in the medical field. The criterion for this loan is that you have to register and attend an eligible school in at least half time status. You have to be registered in a degree program so you can only use this loan if you have chosen your major.
You have to be a U.S. citizen or at least a permanent resident of the country. There are some non-citizen statuses that can receive the loan but each individual is treated on a case by case basis. You also have to prove that you have a good track record in school. Failed classes will bring down your chance to participate in this loan program. You cannot have is loans that are in the default status. This means that you have gotten out of school for a period and you did not pay on your student loans. You also have to have registered for the selective service or the draft. If you are male and have not registered, you will have to enroll to receive the funds.
Through the Title IV program the university or college is paid by the government in one lump sum. The school decides on which student has the most need. This can be a comparison of academic achievement coupled with financial need. Your parents income, your income, and the cost of living you are experiencing comes into play when the decision is made. If you are chosen the school will pay your tuition and then give you a check to help with living expenses. Do not look at this as free money. It is apart of your student loans and has to be paid back. The good think about this type of student loan is that there is a longer grace period before payback and you are not charged extra fees like most student loans charge.