Bad Credit No Cosigner Student Loans are Federal Perkins Loans

Bad Credit No Cosigner Student Loans

Bad Credit No Cosigner Student Loans

When you’re going to college and looking into student loans, but your credit isn’t or is very good, you may need a cosigner and can’t get one. This is the time to look into the federal no cosigner student loans program – the Federal Perkins Loans. It’s the perfect bad credit no cosigner student loans program offered today. Terms, rate and the student loans repayment options are second to none being offered in the student loan market. Let’s look deeper into the dynamics of this federal program offered by the government to see how it may work for you.

Paying for college often takes a bit of creativity, and many first time college students have no clue as to where they should begin to look for funding. Here is information that you need to know about Federal Perkins Loans. These loans are a bit different from other types of student loans such as private student loans. First, you don’t actually apply for Federal Perkins Loans. Instead, you ask your financial aid office about them. The funds for these loans are made available to the schools that participate in the program, and it is the school that determines which students get these awards, and the amounts that they are awarded. The information that is usually used to determine your eligibility for this type of loan comes from your Application for Federal Student Aid (FAFSA), which you will fill out to apply for a Stafford Loan.

Most schools will require you to apply for federal grants and the Stafford loan before you will be considered for a Perkins. Schools receive limited funds each year from the government, and those funds are distributed to the students who have the greatest financial need first, in most cases. It is important to remember that this is a loan – not a grant – and it must be repaid.

Unlike the Stafford Loan, Federal Perkins Loans are repaid directly to your school. There is a 5% interest rate, but the loan is subsidized. This means that for as long as you are in school and eligible for the deferment of the loan, the federal government will pay the interest and interest only starts adding up on the loan once you start repaying the loan. Unlike Stafford Loans, you have up to nine months after graduating, dropping below half time status, or leaving school to start repaying a Federal Perkins Loan, and you have ten years to repay it. This loan program is a good choice whether you need bad credit no cosigner student loans or not.

Throughout the course of your education, you can receive up to $5500 per year if you are an under graduate student, or up to $8000 per year if you are a graduate student. The overall maximum that under graduates can receive is $27,500 and $60,000 for graduate students. The lifetime amount for graduate students includes the loan amounts that were received as an under graduate as well.

The funds from the loan are disbursed to students twice each year, and the funds are first used to pay for any school charges you may have for books, fees or tuition before the remainder of the funds is given to the student.

You need to understand that just because you are eligible for Federal Perkins Loans, whether you receive the funds, and how much you receive depends on decisions made by your schools financial office, and those decisions are made based on the number of students who show extreme financial need, and how much money is available in total. While the yearly maximum for you may be $5500, this doesn’t mean that you are guaranteed to get that amount. Based on this, it is prudent and well advised to look into other bad credit no cosigner student loans so you have enough money to cover your total college bill. Even if you don’t think that you have ‘extreme’ financial need, it is important to ask your financial aid counselor about the Federal Perkins Loans. It could be that among the other students that require financial aid at your school that you do meet the standards for ‘extreme’ financial need after all. Also; inquiring to multiple colleges on your ‘college wish list’ to see how much they can extend to you would be worth the time. You may also be able to get financial aid from your state government, so spend some time investigating your state educational department.

If you require bad credit no cosigner student loans or not, the Federal Perkins Student Loan program seems to satisfy what most students are looking for.

Do these steps first before applying for Student Loans with No Cosigner

Alternative Student Loans first before Regular Student Loans


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  4. Very interesting thoughts and insight, thanks for sharing

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  7. Thanks for the information on the Perkins loan! Most people are aware of the Stafford loan but the Perkins can be very beneficial as well. Students should do more research or contact their financial aid dept. for more info.


    Jen S.

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