Do Not Consolidate Perkins Loan

Federal Perkins Loan formerly called the National Defense and National Direct Student Loan has s a low-interest rate of (5 percent).
Perkins loans are for undergraduate and graduate students with "exceptional" financial need. The loan is a Financial Aid from the US Department of Education. Your school contributes a share to this loan. The lender is your school. You should pay it back to the school and not to the government. Perkins loans are awarded depending on the applicants needs and also on the availability of the funds.
Perkins Student Loans are awarded to persons who apply for financial assistance to attend the university. Your school will either pay the loan amount to you directly either by check or credit to your account. Usually you'll get the loan in two installments during the academic year.

The amount you can borrow depends on the schools funding level and on the level of your need. For an undergraduate it is usually $4000 for each year and the total amount up to $20,000. For graduate or for professional study it is usually $6000 with a total of $40,000 which includes Perkins loan you borrowed as an undergraduate.

Eligibility criteria for Perkins loans

Anita Cherry is a postgraduate in economics and provides impartial opinion regarding financial matters. For more information on making money and saving go to Perkins Loan