Friday, May 27, 2016

Student Loans And The Perkins Loan

Student loans are a great way to pay for college, but if you have other methods you should use them first.  Student loans can pile up quickly and if you stay in school for advanced programs the total at the end can sometimes overwhelm even the most dutiful bill payer. If you go through college to reach your PhD, according to which college you attend, your bills could exceed one hundred thousand dollars.  With that much debt the monthly bills can be over a thousand dollars.  That is almost as much as the most expensive mortgage payment for a moderate size home. It is not worth it in the long run if you can get scholarships, grants, and work study from your school.

Instead of student loans grants can be applied for and a business or organization will pay some or all of your tuition. Grants can be applied to online or you can go to your school’s financial office and ask a counselor how to apply for a grant and what one’s are right for you.  A grant is one time or monthly payment to your school that you do not have to pay back.  You have to give a specific purpose for your studies because some grants only want you to pursue a particular field.  In comparison to student loans, this is the most preferred way to pay for your tuition.  They give you the money. You pay the bill and the transaction is over and will not haunt you down the road.

Instead of student loans you might want to look at scholarships as a way to pay your commission. Scholarships are awards after the student shows individual achievement whether in sports or academics. Once you are in college for a semester and you have a GPA of 3.0 or higher, start searching the web for scholarships. Apply for all that you meet the criteria on and even some if you don’t.  If nobody reaches the criteria for a scholarship, the scholarship committee will award the prize to the closes one that does.  Student loans are great when you need them, but these other choices are the best way to keep your future finances in check.

If you are looking into applying for student loans to pay for your college tuition, you might want to look into the Perkins loan.  The Perkins loan is a loan with a low interest rate that is set at only 5%.  This loan can be paid back for you if you are a special education teacher or a nurse that is practicing in the medical field.  The criterion for this loan is that you have to register and attend an eligible school in at least half time status.  You have to be registered in a degree program so you can only use this loan if you have chosen your major.

You have to be a U.S. citizen or at least a permanent resident of the country.  There are some non-citizen statuses that can receive the loan but each individual is treated on a case by case basis.  You also have to prove that you have a good track record in school.  Failed classes will bring down your chance to participate in this loan program. You cannot have is loans that are in the default status. This means that you have gotten out of school for a period and you did not pay on your student loans. You also have to have registered for the selective service or the draft.  If you are male and have not registered, you will have to enroll to receive the funds.

Through the Title IV program the university or college is paid by the government in one lump sum.  The school decides on which student has the most need.  This can be a comparison of academic achievement coupled with financial need.  Your parents income, your income, and the cost of living you are experiencing comes into play when the decision is made.  If you are chosen the school will pay your tuition and then give you a check to help with living expenses.  Do not look at this as free money.  It is apart of your student loans and has to be paid back.  The good think about this type of student loan is that there is a longer grace period before payback and you are not charged extra fees like most student loans charge.