When you're getting ready for college you shouldn't have to worry about the financial part of this. Perkins Loans are there to help you with this aspect of college. The government offers what is called a Federal Perkins loan. This is an interest loan whether you are an undergraduate or graduate student, where your school is the lender. The loan is actually made with government funds and your school contributes a share of the financing. When it comes time to pay this back, the loan must be repaid to your school.
If you're wondering how much you would be able to borrow this depends on several factors such as when you apply, the amount that you need, and the level that the school will loan you. You will be expected to pay this money back at 5% interest, but other than this you’re not charged any fees to take the loan. There are some stipulations attached in making payments. If you skip a payment, or make a late payment, while making less than a full payment, then there is a late charge attached. If you stop making payments, this can result in you having to pay the collection costs as well as the payments.
Your school disburses the payments in the form of a check or it can be credited to your account. You receive the money in two payments during the academic year. If for some unforeseen reason during the year you wish to cancel your student loan, you can do this by notifying your school 14 days in advance and if you have received the payment from your school you can just return the check.
If you keep the loan during the year of college, you're probably wondering when this will have to be paid .You have nine months after you graduate then you must start your repayment plan. This may differ with how long you have left school or whether you're on active duty military. When the military becomes an issue, the US Department of Education issues special guidance for those that are called to active duty. If you are called to active duty, then the loan must stay in place for you to use when you can, but the maintenance of the loan status cannot go over a total of three years.
How much you would have to repay each month depends on the size of your loan and the length of time that you have to repay. You have to keep in mind that the 5% loan differs over a 10-year period. For certain higher education expenses, there are tax incentives, which includes a deduction for student loan interest for certain students. Regardless of what you have to pay, it is worth it when you are investing in your future.