A Federal Perkins Loans are specialized to help an individual fund their college education. This is a federal student loan that typically carries a lower interest rate (around 5%) and is provided to both undergraduate and graduate students with extraordinary financial needs.
Unlike some other student loans such as the Parent Plus loan and Stafford loan, these are done through a school’s financial aid office. This means that your school is your lender, and the cash you are being provided with is actually from government funds. With these loans you will be paid two separate times during the school year, and your school will provide these funds to any school debt you have obtained, or they will give you the money by check.
Any student that is looking to obtain this type of loan will first have to be considered eligible through their school’s financial aid office. There is no way that you can apply going around your schools financial aid office. Therefore, you will be required to fill out and file the Free Application for Student Financial Aid (FAFSA). This application will be carefully examined, and if your income happens to meet the right requirements, you can possibly qualify for the loan. The money that the government is willing to lend will be repaid in full once your education is complete.
Schools that participate in the Federal Perkins Loan Program are given a certain amount of funds from the government that can distribute to eligible students throughout the year. At this time the school will be the ones who determine how much funds the student should need.