Borrowing has a paradoxical component that can be particularly confounding as you launch your quest for college funding.If you do not have established credit, as is the case with many new borrowers and college-aged students, it can be difficult to secure a loan.
Because Perkins Loan funding is limited, and money is issued on a first-come first-served basis, it is imperative that you file your FAFSA as early as possible if you are counting on this type of aid.
Three important factors influence the amount of your Perkins award: Maximum annual borrowing limits for undergraduates currently stands at ,500, with a lifetime limit of ,000.
Filing your FAFSA gets the ball rolling to help you pay for college.
Grants and loans are essential components of most student aid packages.
Government grants are awarded based on financial need, and the funds don’t require repayment.
Needless to say, any grants you can get your hands on provide a major windfall for financing your education.
Perkins Loans are federally funded student loans, which are administered directly by the Institution of Higher Learning you are attending.
Perkins funds are reserved for undergraduate and graduate students exhibiting the greatest need for financial assistance during college.
For Direct Subsidized Loans issued after July 1, 2012, interest will not be paid by the government during the 6-month grace period after you leave school.
If the interest is not paid by the borrower, it will be added to the principle balance of the loan.
If you already have credit strikes against you, from late payments or defaults, your outlook for conventional borrowing is even more bleak.