Federal Perkins Loan
The Federal Perkins Loan used to be known as National Direct Student Loans (LA). This loan is considered the best loans subsidized by the federal government and given to students in high financial need. Currently, the interest rate is less than 5%.
Perkins Loans are made to students and do not require a parent cosign. The student must begin to pay after you graduate, leave college, or benefit from the status of part-time student. Interest on these loans does not accrue during the period in which the student attends the university and students have up to ten years to repay the loan in full. Repayment begins nine months after graduation or falling below half of student status at the time.
The money for Perkins loans come from government but is administered by the universities? Financial aid offices. The annual maximum loan for undergraduate students is $ 4,000 in most schools, and more than one student can borrow is $ 20,000 Total.
Perkins loans can be discharged (canceled) in whole or in part, if the child is registered for use in certain activities, including:
- Full-time teachers in low-income areas
- Full-time special education teacher
- Full-time math or science teacher, or teacher of any subject with a shortage of teachers
- Full-time nurse or medical technician
- A full-time employee of a child or family service agency for low-income area
- Full-time law enforcement or corrections officer
- A full-time Peace Corps volunteers in
STUDENT EDUCATION LOAN
A student education loan is an unsecured loan available to students at a very low interest rate compared to unsecured loans in the market. This is actually a special feature of the student education loan for the purpose of having more students take the initiative to take up higher study. The student education loan is actually a provision made for students to support them to avoid feeling burdened with huge expenses of education as well as their parents.In the student education loan,the student becomes the borrower and payer of the incurred cost of his education. One benefit of student education loan is that the borrower will start repaying for his loan once he completes his course of study and gets employed.
Through the student education loan, this covers all expenses that have incurred during the course of study of the student, which may include boarding and lodging, purchase of computer, study materials, laboratory expenses, and other educational course fees.
Another benefit of the student education loan is that even students with bad credit history can still avail of it to pursue further education although interest rates are slightly higher but still affordable than other bad credit loans in the market.
Obtaining quality education is one of the most important requirements everyone should have. It may requires money to achieve it but there are several kinds of support the government provides such as the student education loan. With this, students can now take up more educational opportunities, thus reducing burden for both students and parents.
Federal Pell Grant
The Federal Pell Grant is for those who are seeking a postsecondary education and is based on several factors which include income, expected family contribution, if the student is enrolled full time or part time, how much tuition is at the school of attendance, and how long the student is going to be attending the institution. A Pell Grant is only available with one school at a time for the student.
How much the student receives is calculated by the Department of Education with a formula that was set forth by Congress. The student who is requesting a Federal Pell Grant has to fill out a FAFSA, Free Application for Federal Student Aid. The information put on this form is the students income, if they are a dependant of their parents then it will be their parents income, either the students or the parents assets, how many people are in the family, and how many people in the family are attending a postsecondary institution but you cannot include the parents in this section
The expected family contribution is calculated by using a percentage of the income and assets. There are different rates set forth for those who are independent, dependent, and independent with or without dependents. After the FAFSA is filled out then the Department of Education either sends the student a Student Aid Report or the institution an Institutional Student Information Record which will contain the expected family contribution amount and whether or not the student will be able to receive the Pell Grant.
The Pell Grant is only for those students who do not have their bacculearate degree or who are going to a post bacculaureate program that is for a teaching degree or license.
There are a few things the schools can do with the Pell Grant once it is received. One way is to automatically credit the amount to the students school account and if there is anything left over they can give a check to the student. They can also decide to write a check for the full amount to the student, which then puts the responsibility on the student to make sure their tuition is paid in full. The student must receive their money per term one time. If the school doesn’t have a set way of using the Pell Grant they have to pay the students two times each term. The school is responsible for telling the student in written form how much aid they received and when the will get it.
The Federal Pell Grant does not have to be repaid to the government. This is free money the student can use towards his or her education. The maximum amount of the Pell Grant for the 2008 to 2009 school year is $4, 731. This does not mean you will get the full amount available . The amount you receive depends on the information you provide on the FASFA.