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Understanding the Federal Perkins Loan Program [Education]: A Comprehensive Guide
Definition & Meaning
The Federal Perkins Loan Program is a federal student loan initiative designed to provide low-interest loans to eligible students who demonstrate financial need. This program was established under Title IV-E of the Higher Education Act (HEA) and includes the National Direct Student Loan Program and the National Defense Student Loan Program. The loans are issued through participating colleges and universities, which act as lenders, allowing students to borrow funds to help cover the costs of their education.
Table of content
Legal Use & context
The Federal Perkins Loan Program is utilized primarily in the context of higher education financing. It is relevant in legal practices involving education law, financial aid, and student rights. Students may need to understand this program when applying for financial assistance or when dealing with loan repayment issues. Users can manage their loan applications and repayment processes using legal 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 public university applies for a Federal Perkins Loan to help cover tuition costs. After demonstrating financial need, they receive a loan of $4,000 with a five percent interest rate.
Example 2: A graduate who borrowed under the Perkins Loan program begins repayment after nine months of graduating, understanding their monthly payment obligations based on the total amount borrowed and interest accrued. (hypothetical example)
Relevant laws & statutes
The Federal Perkins Loan Program is governed by Title IV-E of the Higher Education Act (HEA). Specific regulations can be found in 34 CFR 668.2(b), which outlines the definitions and provisions related to the program.
Comparison with related terms
Term
Definition
Key Differences
Federal Perkins Loan
A low-interest federal loan for students with financial need.
Issued through schools, with specific eligibility criteria.
Stafford Loan
A federal loan available to students regardless of financial need.
More widely available and does not require school involvement.
PLUS Loan
A federal loan for parents of dependent undergraduate students.
Available to parents, not students, and based on credit history.
Common misunderstandings
What to do if this term applies to you
If you believe you may qualify for a Federal Perkins Loan, start by contacting the financial aid office at your school. They can provide guidance on the application process and eligibility requirements. If you are already a borrower, ensure you understand your repayment options. For assistance, consider exploring US Legal Forms for templates that can help you manage your loans and repayment plans. If your situation is complex, consulting a legal professional may be beneficial.
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