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.


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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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