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Understanding the Federal Perkins Loan [Education]: Definition and Insights
Definition & Meaning
The Federal Perkins Loan is a type of financial aid provided to students to help cover the costs of their education. This loan is specifically designed for individuals who enrolled in postsecondary education on or after July 1, 1987, and who did not have any outstanding federal education loans at that time. The Perkins Loan is a subsidized loan, meaning that the government pays the interest while the borrower is in school and during certain deferment periods.
Table of content
Legal Use & context
The Federal Perkins Loan is used primarily in the context of higher education financing. It falls under federal education laws and regulations, particularly those related to student assistance. Legal practitioners may encounter this term when advising clients on student loans, financial aid eligibility, or navigating the repayment process. Users can manage certain aspects of Perkins Loans, such as deferment or repayment, using templates available through US Legal Forms.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A student attending a community college applies for a Federal Perkins Loan to help pay for tuition and fees. They qualify based on their financial need and have no prior federal loans.
Example 2: A graduate student who is enrolled in a master's program applies for a Perkins Loan to cover living expenses while studying full-time. (hypothetical example)
Relevant laws & statutes
The Federal Perkins Loan program is governed by the Higher Education Act (HEA), specifically Title IV-E. The relevant regulations can be found in the Code of Federal Regulations (CFR), particularly 34 CFR 668.2 (b).
Comparison with related terms
Term
Definition
Key Differences
Federal Perkins Loan
A subsidized loan for students with financial need.
Interest is paid by the government while in school.
Stafford Loan
A federal loan available to students regardless of financial need.
Borrowers are responsible for interest during school.
PLUS Loan
A federal loan for parents of dependent undergraduate students.
Credit check is required; higher borrowing limits.
Common misunderstandings
What to do if this term applies to you
If you believe you may qualify for a Federal Perkins Loan or have questions about your existing loan, consider the following steps:
Contact your school's financial aid office for guidance on eligibility and application processes.
Review your loan repayment options, including deferment and cancellation provisions.
Explore US Legal Forms for templates that can assist you in managing your loan documentation.
If you face challenges, consider seeking advice from a financial aid advisor or legal professional.
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