Hello everyone. I am eligible for the Federal Perkins loan which gives me $3000. The interest rate for this loan is 5% and i have up to 9 months to pay for it after I graduate. I am so confused regarding the interest rate.
How does interest rate work?
Will I be charged interest while I am in school?
Or is interest only charged if I don’t pay the government back in 9 months?
Thank You All!!!
You don’t have only 9 months to pay the loan, your payments will start 9 months after you leave school (graduation, stop going to school, don’t start graduate school). Your loan repayment term can be up to 10 years after you start paying.
You do not pay or accrue interest until you start the loan repayment period. If you do pay back the entire amount borrowed before that 9 month grace period, you will not owe any interest. Perkins loans and terms are generally considered very good.
Interest starts once the loan is disbursed. The government pays the interest while you are in school and for the first 9 months once you are no longer enrolled. After nine months, you are responsible for repayment. If the loan is repaid within nine months then you will pay no interest.
Does this also apply in you are enrolled in a Pharm.D program which takes 6 years to complete? So would the government charge me after 4 years or after 6 years?
No interest until after the Pharm.D. program.