subsidized vs unsubsidized loans

[emeraldkity4]

<p>Emerald, the OP did say that her son’s school considered them to demonstrate the greatest financial need IN THEIR SCHOOL AT THAT TIME. Some schools do not have many Pell grant recipients, so if they have the money sitting there, they’ll give to others. It just says that Pell grant recipients get top priority, not that they are the only ones to get the money. At a school with a lot of Pell Grant kids, you would not likely get any Perkins money. It appears that other than that stipulation, the school is free to give the loans to whomever they want to have them. They just don’t get any more when they are dispensed.</p>

<p>However it is govt money- and this info also is unclear if students actually have to qualify for Pell, or just fill out the FAFSA.</p>

<p>

Federal Perkins Loan</p>

<p>The Federal Perkins Loan is awarded to both undergraduate and graduate students. The Federal Perkins Loan is awarded first to students with exceptional need. Connecticut College acts as the lender using government funds, and the federal government pays the interest on the loan until you begin repayment.</p>

<p>General Requirements</p>

<p>In order to be eligible for the Federal Perkins Loan Program, you must:</p>

<pre><code>* Be a United States citizen, national, or eligible non-citizen

• Not be in default on any Title IV loan
• Not owe a refund on any Title IV grant (unless satisfactory repayment arrangements have been made)
• Be making satisfactory academic progress
• Receive a determination of your Federal Pell eligibility by submitting a Free Application for Federal Student Aid (FAFSA )
  </code></pre>

<p>Interest Rate</p>

<p>The interest rate is set at 5%.</p>

<p>Application or Processing Fees</p>

<p>There are no application or processing fees for the Federal Perkins Loan. However, if your award letter indicates that you received a Federal Perkins Loan, you will be directed to iPROMise to complete the following</p>

<pre><code>* Federal Perkins Loan Entrance Counseling.

• Federal Perkins Loan Interview Form
• Federal Perkins Master Promissory Note
• Federal Perkins Loan Indebtedness
  </code></pre>

<p>Loan Levels and Limits</p>

<p>Depending on when you apply, your level of need, and the school’s funding level, you can borrow up to:</p>

<pre><code>* Undergraduate students may borrow up to $4000 per year (the total amount you can borrow as an undergraduate is $20,000.)

• Graduate and professional students may borrow up to $6,000 per year. (The total amount you can borrow as a graduate and professional student is $40,000 including any Federal Perkins Loans you borrowed as an undergraduate.)

</code></pre>

<p>However- that may be a way that they attract students as freshmen by * finding money* and then reevaluating the next year, reducing their aid.</p>

[cptofthehouse]

<p>The requirements do not say you have to be eligible for a Pell grant. Just that you have to be evaluated for eligibility which is just submitting FAFSA. I don’t see where anyone is specifically blocked from getting one as the parameters are not number specific like the Pell grant is. Can’t get one of those without getting a threshhold EFC.</p>