Government Perkins Loans for Students with Bad Credit
Perkins loans are low interest rate federal student loans for people
with bad credit, no credit, and low incomes who are ready to get a
college education. These low interest rate student loans are made to
colleges and universities by the government and distributed by the
colleges and universities financial aid offices. Undergraduate students
and graduate students are eligible for these low interest rate loans. As
with all student loans, before starting any loan processes one must go
online and fill out the Free Application for Federal Student Aid.
Remember that the Department of Education's website is free for students
to apply, do not fill out your FAFSA on a website that charges. After
you FAFSA is complete, your financial need will be determined.
Alternative student loans for bad credit
The
formula that financial aid offices use to determine eligibility has
been created by the Congress of the United States. The student's income
is considered. If the student is a dependent student they consider the
parents' incomes and assets, family size, and how many siblings are in
college at the current time. What the family or student must pay is the
Expected Family Contribution (EFC). They take what people make and own
and deduct an average of living expenses, and an average asset
deduction, from that to see how much money they will have left to pay
the tuition bill. They use different numbers for independent students
with dependents and those without dependents as well have different
numbers for dependent students.
After you finish filing out your
FAFSA you will receive a SAR. The SAR is the Student Aid Report; this
report tells you your EFC. The college or university receives an
Institutional Student Informational Record which lets them know your
EFC. Your EFC is how the financial aid office knows if you are eligible
for the Perkins Loan. Sometimes people's EFC is zero, and then they
should be eligible for a low interest rate Perkins loan, if the school
or university you are attending participates in the Perkins loan program
for low income students who may have bad credit or low credit or
perfectly fine credit. The Perkins loan student loan is a great loan for
students with no credit, bad credit, and a low income level.
In
2010 $1,041,545,000 was awarded to participants in this Perkins Loan
program. Student may receive up to $5,500 for undergraduates although
the average loan was $2,125. In 2009 and 2008 $1,103,000,000 was awarded
to participants. If you financial aid office does not talk to you about
Perkins Loans and you feel you may meet low income requirements
definitely ask them if they participate in the program and if they do,
ask if you are eligible.
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