Can you increase perkins loan

Perkins Loans are originated and serviced by participating schools and repaid to the school. The government does not insure the loans, but instead provides money to eligible institutions to help fund the loans. If you default on a Perkins loan, it is usually the school that will come after you to collect. In some cases, the school will assign a Perkins loan to the Department of Education.

In , Congress chose not to keep the program. Then, in December , President Obama signed a law temporarily extending the Perkins loan program for two years for eligible undergraduates and one year for eligible graduate students. For example, Perkins loans have minimum monthly repayment rates, set by law. Schools are allowed to extend the repayment period due to a prolonged illness or unemployment.

Extensions may also be granted if you qualify as a low-income individual. Interest continues to accrue during any extension of a repayment period. If the school holds the loan, you should expect to hear from the school about payment and other issues. Be aware that many schools assign Perkins loans to the Department of Education. Source: U. These may include personal bankruptcy , total disability, or death. You may also qualify for a discharge if your school shutters its doors.

Perkins Loans can be eligible for repayments adjusted to suit your income level, but only if you consolidate them into a federal direct consolidation loan. The Department of Education cautions that "if you have federal Perkins Loans and you are employed in an occupation that would qualify you for Perkins Loan cancellation benefits, you should not include your Perkins Loans when you consolidate. If you're in an occupation eligible for loan cancellation, don't consolidate your Perkins Loan into a federal direct plan.

There are four income-driven repayment plans, which differ slightly in their details:. With all four income-driven repayment plans, any remaining loan balance is forgiven once you've made the required payments for the required number of years. You can consolidate your federal loans and also learn more about the process using the Direct Consolidation Loan Application on the U. Department of Education's Federal Student Aid website.

The American Rescue Plan passed by Congress and signed by President Biden in March includes a provision that student loan forgiveness issued between Jan. Although the federal government canceled the Perkins Loans Program, it still offers other student loans for those who demonstrate a need for financial aid. Some of these include:. The amount of the loan is determined by your school and cannot exceed that limit. The term subsidized refers to the fact that the Department of Education covers the interest payments while you are still in school just like the Perkins program.

But there's one caveat—Direct Subsidized Loans are available only to undergraduate students. These loans are available to both undergraduate and graduate students regardless of financial need. Just like direct loans, the amount of your unsubsidized loan is determined by your school. But here's the difference between subsidized and unsubsidized loans —you are responsible for making interest payments even while you're in school.

Any interest that is not made while you are in school or during the nine-month grace period after graduation is capitalized, which means it's added to your principal balance. This program is intended to act as financial aid for undergraduate, graduate, and professional students. Unlike the other two programs, the borrower is the student's parent. Students must be enrolled at least half-time for a PLUS loan. Money goes to the school to cover education-related expenses before any remaining funds are disbursed to the borrower.

The schools use your EFC to decide how much federal aid to offer you. They do that by subtracting your EFC from their cost of attendance COA , a number that includes tuition, room and board, fees, and related expenses. In addition to some changes in the way the SAI is calculated, the change attempts to clarify what this figure actually is—an eligibility index for student aid, not a reflection of what a family can or will pay for postsecondary expenses.

To bridge the gap between your EFC and their COA, schools may offer you a package of financial aid that includes some combination of federal grants—known as Pell Grants —subsidized and unsubsidized Direct Loans, and paid work-study jobs. Like subsidized loans, grants are intended for students in significant financial need, but you don't have to repay them except in rare circumstances.

Colleges may also offer other, non-federal aid, such as merit scholarships. Federal Student Aid. Coalition of Higher Education Assistance Organizations. Accessed March 18, Student Loans. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page. These choices will be signaled globally to our partners and will not affect browsing data. However, this does not influence our evaluations.

Our opinions are our own. Here is a list of our partners and here's how we make money. Perkins loan holders who work in a public service position are eligible to have their student debt partially or fully erased through a federal forgiveness program after working in approved public service jobs and making qualifying payments.

Perkins loans are subsidized loans for undergraduate and graduate borrowers with extreme financial need. The loan program was eliminated Sept. However, you can still pursue forgiveness for existing Perkins loans if you qualify. You can apply for a percentage of your loan amount to be forgiven as early as your first completed year in a qualifying public service position. If you work in one of these jobs full time, you could qualify for forgiveness:. Attorney employed in a federal public or community defender organization.

Child or family services worker providing services to high-risk children and their families from low-income communities. Educator in a prekindergarten or child care program licensed by the state.