Loans made available through the Perkins Federal Loan Program, often referred to as Perkins Loans, are low-interest federal student loans for undergraduate and graduate students with exceptional financial needs. The Perkins Federal Loan Program is awarded based on the needs of students attending a post-secondary institution. The Perkins Federal Loan Program provides low-interest loans to help students finance post-secondary education costs.
The Perkins Federal Loan Program offers low-interest, long-term loans (five percent) to undergraduate and graduate students who demonstrate financial need and enroll in participating schools. Direct subsidized loans are available to eligible college students who demonstrate financial need to meet the cost of higher education at a college or vocational school. Unsubsidized direct loans are loans made to eligible college students, graduates, and professionals, but eligibility is not based on financial need. The US government offers other types of federal student loans, including subsidized and non-subsidized loans, often referred to as Stafford loans.
The maximum annual Perkins Federal Loan Program loan that an eligible student can borrow is $5,500 for a student enrolled in a college program and $8,000 for a graduate student. The Carl Perkins Federal Loan Program is for students enrolled at least half the time in a qualifying program who need a loan to cover their education expenses. The Perkins loan has an interest rate of five (5) percent and repayment begins nine (9) months after the student graduates from school, drops out of school, or falls below the range.
The loan does not accrue interest and its repayment starts no earlier than nine months after the student graduates or if he is no longer enrolled at least halfway through. Interest will begin to accrue nine (9) months after the borrower graduates or ceases to be a part-time student at an annual interest rate of 5% based on the outstanding balance. Payment of principal and interest is deferred until the student is enrolled at least halfway through; are enrolled and attending the Graduate Scholarship Program; participates in research supported by graduate or postgraduate (such as Fulbright) scholarships outside the United States; enrolled in a recognized disability rehabilitation program; looking for and unable to find a full-time job; suffering from economic difficulties; or engages in services that are eligible for credit revocation.
Upon submission of a properly documented written request to the loan holder, you are entitled to a cancellation of up to 100% of the original principal amount of your Perkins federal loan for qualified teaching services that includes August 14, 2008 or begins on or after August 14. in a school or place operated by an educational services agency that has been found to have a high concentration of students from low-income backgrounds. Borrowers who teach full-time at certain elementary or high schools catering to low-income students, tenured teachers in certain subject areas, and tenured teachers of children with disabilities can write off up to 100% of Perkins loan debt. It should be noted that a Perkins loan borrower is no longer eligible for additional federal bailout dollars if they return to school until the default is cleared.
Refinancing Program loans into a private student loan will mean you miss out on any federal loan repayment benefits. Combining your Perkins Loan into a Direct Consolidation Loan disqualifies you from certain Perkins Loan benefits, such as having your debt canceled after five years of payments if you work certain jobs. You can combine Program Loans into one Direct Consolidation Loan to qualify for an income-based payment if needed. While program loan funding comes from the federal government, your school or school loan service collects student loan payments and helps you navigate your repayments.
Once a student who has taken a loan leaves or graduates from the University of Arkansas, Educational Computer Systems is responsible for obtaining those loans. The University of Arkansas Student Loan Division has contracted with Educational Computer Systems, Inc. (ECSI) to enforce federal regulations and maintain accounts associated with the Perkins federal loan program. All federal student loan lenders are required to report their loan portfolios to the National Student Loan Data System (NSLDS) on a monthly basis.
On August 27, 2021, the U.S. Department of Education (ED) Federal Student Aid released updated guidance for terminating the Perkins Federal Loan Program, with some actions that institutions must take by June 30, 2022. Loan Program June 30, 2022 According to updated guidance, institutions with Perkins loans that have defaulted for more than two years. if the institution does not have documentation that borrowers are making payments on the loan. The program ended in September 2017, and federal law requires colleges to make final Perkins loans by July 2018. Colleges could issue loans made before September 30 through the end of the 2017-18 school year (June 30, 2018).
Students are eligible to receive a Perkins loan by – To – Who, on the payment date – If the student was awarded – September 30, 2017 Eligible current college students have an outstanding balance on a Perkins loan provided by the school. A limited number of Perkins loans are available through the Department of Financial Aid to any U.S. citizen who is accepted as a full-time or part-time undergraduate student and meets the loan criteria. Beginning October 1, 2007, borrowers who are members of the National Guard, members of the Armed Forces Reserve, and retired members of the Armed Forces are eligible for a 13-month grace period to repay Perkins loans after completing active activity. Military service if they were enrolled at an institution of higher education at the time of activation or within six months prior to activation. Borrowers serving in the National Guard or providing qualifying services due to war, military operations, or national emergencies are not required to pay principal or interest on Perkins, NDSL, and Defense loans.