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The Federal Perkins Loan is another type of student loan that is subsidized by the government, meaning interest on the student loan doesn’t begin accumulating until you’re required to start repaying.

This type of student loan is very appealing for a number of factors:

• It carries a fixed 5% interest rate for the 10 – year repayment period.

• There’s a 9 month grace period for this student loan (meaning, you’re given 9 months before you’re required to start repaying after graduating, falling below half-time status, or withdrawing from your college or university).

• The student loan is subsidized by good ol’ Uncle Sam until you’re required to start repaying. Which means the government picks up the tab on the interest accrued during your college attendance.

• This student loan is eligible for Federal Loan Cancellation, which essentially mean that if you go into one of the eligible fields of work designated by the Federal Loan Cancellation guidelines, then your complete student loan or a percentage of your student loan will be cancelled.

• There are no fees associated with this type of student loan.

The downside of this student loan is that in order to qualify you must fall into the federal “financial need” framework.

Basically saying that your tax bracket decides whether you’re eligible for this type of student loan or not.

With this type of student loan, your school is your lender. Which means your loan amount is actually repaid to your school and is then reinvested into your schools revolving loan fund.

The amount of student loan you could barrow is also limited. You’re allowed to borrow up to $5,500 for each year of undergraduate study. However, the total amount of you can borrow as an undergraduate is $27,500. Students doing graduate studies could borrow $8,000 per year. The combined total of your undergraduate and your graduate studies student loan cannot exceed $60,000* combined.

*As of the date of this post.

If you’re eligible for this type of student loan, this should definitely be the first one you should look in to.

Always remember, student loans are NOT FREE.

You will have to pay them back with interest sooner or later, so try to be conservative with regards to how much you’re borrow and what type of loan you’re committing yourself to. There are droves of people out there with mountains of student loan debt that they cannot overcome.

If you’re interested in learning more about student loans, check out The E-Z Guide To Student Loans (Stafford Loan) and also sign up below to get these 5 FREE Student Loan eBooks’ instantly.

Student Loan Ebook # 1: Your Federal Student Loans

Student Loan Ebook # 2: Repaying Your Student Loans

Student Loan Ebook # 3: Your Go To College For Free Card

Student Loan Ebook # 4: Funding Education Beyond High School

Student Loan Ebook # 5: Dangerous Default – Get Out Of It

After signing up you’ll also learn the 7 important tips every student needs to before taking out a student loan.

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