College Loan Consolidation, Federal Loan Consolidation, Private Loan Consolidation, Student Loan Consolidation

America's Top Student Loan Provider

Funding your Education with Federal Financial Aid: Perkins Loans
by Brooke Heath

Perkins loans are federal student loans that are unique in that they are campus-based aid given through a student's school. The funds are contributed from both the federal government as well as the school, so they are still considered federal loans. Because the school acts as the lender, the borrower will repay the school, once he or she enters their repayment period.

These loans are given to students who demonstrate financial need, based on their expected family contribution ("EFC"). The EFC is the amount of money that a student or their family can contribute to their college education.

The loans are disbursed directly from the school to the student, usually in the form of two separate payments during the academic year.

Not Just Your Average Federal Loan…

Perkins loans are unlike any other federal loans. For starters, with an interest rate of 5%, Perkins loans have the lowest interest rate of any federal loans available. Also, the grace period for Perkins loans is nine months instead of the normal six months on other federal loans. This gives students time to establish their financial situations prior to beginning their repayment period.

Another huge benefit of taking out Perkins loans is that they are subsidized. With subsidized loans, the government will pay off all of the interest that accumulates on the loan while the student is in school, in their grace period, or in deferment. After this time, the interest is the borrower's responsibility.

Also, depending on the student's career choice, Perkins loans can often be forgiven.

As with all federal student loans, Perkins loans offer benefits like deferment and forbearance options. These two options allow borrowers to temporarily suspend their monthly payments due to financial hardship or other hardships.

Also, like other federal loans, Perkins loans are not based on credit, so borrowers who do not have a credit history, or have a poor credit history, will not be discounted for these loans. Because Perkins loans are not credit-based, there is no need for a cosigner, either.

Finally, there are no prepayment penalties on Perkins loans or any other federal loan. This allows borrowers to repay their loans as early as they choose to.

Loan Limits

The loan amount that a student can receive with a Perkins loan is determined by the school's financial aid office. The school's financial aid office usually takes into consideration the amount of funds that are available to provide for other students to receive aid. The program limits are $4,000 per year for undergraduate students and $6,000 per year for graduate students, with cumulative limits of $20,000 for undergraduate loans and $40,000 for undergraduate and graduate loans combined.

It is a good idea to visit your school's financial aid office and meet with an advisor to learn about the amount that your school will issue in Perkins loans.

How to Apply

To apply for a Perkins loan, students must complete the Free Application for Federal Student Aid (FAFSA) form. This form provides the government and the student's school with information that will determine the student's eligibility for the loan, such as the EFC. This form can be completed online at

Consolidate Your Federal Loans

Another great benefit in borrowing Perkins loans is that they can be consolidated with other federal student loans. Consolidation bundles all of your federal student loans into one easy-to-manage loan. With this new loan, borrowers receive just one monthly statement, and make only one low, monthly payment to only one lender. This saves them the hassle of making multiple payments to multiple lenders every month.

Also, when borrowers consolidate with a true lending company like EdFed, they can save thousands of dollars over the life of their loan, and even lower their monthly payment by almost 50 percent!

EdFed Helps Students Achieve their Goals

EdFed is an industry leader, who is dedicated to helping students achieve their educational goals, as well as manage their student loan debt. EdFed offers incredible borrower benefits, as well as competitively, low interest rates and flexible repayment options.

Read More!

For more information on Perkins loans or other federal student loans, read more of EdFed's informative articles or visit these websites:

Department of Education

Student Loan Comparison Chart from the Department of Education


Article Title : Funding your Education with Federal Financial Aid: Perkins Loans
Comment not found for this article.

Share this story:
  • BlinkList
  • blogmarks
  • Digg
  • Facebook
  • Google
  • Sphinn
  • MySpace
  • NewsVine
  • Simpy
  • StumbleUpon
  • Technorati
  • E-mail this story to a friend!
  • Print this article!
  • Faves
  • Furl
  • Netvouz
  • Slashdot
  • Spurl
  • Yahoo! Buzz

EdFed introduces… Awareness… Learnal
At, EdFed, we proudly introduce 'articles on student loans' and 'Learnal - the journal to learn from', our free newsletter on student loan management, which is sure to keep you informed of the latest events and happenings in the student loan market. To receive your copy of the above just use the RSS feed below and add this to your "My Yahoo", blogs, newstickers, and other similar channels accepting distributable content.
Click here to sign up for our Weekly Newswire now!

How EdFed Helped others!
By consolidating through EdFed, I locked in my current low interest rate, beating the rising rates. Then they went one step further and reduced it an additional 1.25% through their exclusive benefits. EdFed is the lender that takes consolidation one step farther.
- Jamal B.  Atlanta, GA
* Your Name: * Your E-mail Address:

We respect your privacy.
* Your Friend's name: * Your Friend's E-mail address:
Include a Message:
+ Privacy Policy

Student Loan Consolidation Info - How to Choose the Right Loan Company

This column is sponsored by Granted, America's top job search engine. The Career Resources column is presented by Granted, America's leading job search engine dedicated to getting people jobs.

Education is one of the most basic right of any human, but with the increase in prices and the costs involved in education this has made these rights turn into a privilege which very few can enjoy. Any normal person today in the whole of United States has to take an education loan at one point of time to pay for their education fees.

read more
Schools Will No Longer Receive Paper FAFSA Forms
(September 20, 2007)

news desk
Stafford Loan Payment Calculator
PLUS Loan Payment Calculator
Loan Consolidation Payment Calculator
Glossary of Terms
Loan Comparison Chart
Scholarship Search
Consolidation over the phone with EdFed can take just minutes--call us at 800-821-5659.
US School Directory
Comprehensive List of Schools at which EdFed Assists Students.
EdFed is a FFELP lender with lender identification number 834241.
© Copyright 2017 EdFed. All Rights Reserved.

Home · About Us · Contact Us · News · Sitemap
Career Advice · Tell a Friend · Privacy Policy · Resume Service
Resume Distribution Service · Post Resume · Job Search Course
Sign up for the latest news on student loans.
Email Address:
+ Most Recent Newsletter
+ Newsletter Archives