Stafford and Perkins Loan Questions

Paying for College
1

<p>I know that the interest rate for the Stafford loan is at 3.4%, while the Perkins interest rate in 5%. Stafford has a 1% fee for each loan disbursement, while the Perkins loan has no fees. But there are some things I don't understand about when I actually have to start paying back the loans. </p>

<p>For the Stafford loan you don't make any loan payments until your grace period ends, which is six months after you graduate, leave school, or enroll for less than half the time. So say I go to school full time in the fall, don't take winter classes for the one month, but go to the spring semester full time. Will that month that I didn't go to class count as leaving school and mean I have to begin repaying my loan, or do I have to not be in school for those six months?</p>

<p>And for the Perkins loan you have up to nine months after you leave school to begin repaying your loan. Does that mean nine months after I leave the specific school I received Perkins from, or if I don't go to school for that semester (the same situation as above), or when I stop going to school for those nine months? </p>

<p>I know this might be tough to answer because it could depend on the school, but do loans need to be processed like FASFA does? If so do I need to wait for my FASFA to go through with my school before the loan goes through also?</p>

<p>Thanks!</p>

2

<p>

No, it doesn’t depend on the school at all. These are federal loans and follow the same rules whatever school you go to. Perkins and Stafford loans are offered to you by your school based on the results of your FAFSA, the schools COA and your outstanding need. For Perkins the school will have their own criteria for awarding it and it will also depend on the amount of funding they have.</p>

<p>The grace periods are for when you graduate or drop below half time from school - not a particular school. So if you get a Perkins loan at school A then got to school B for 2 years, your grace period would be 9 months after you finish at school B.</p>

3

<p>So if I am at a community college and I only take classes in Fall and Spring, then I transfer to a university after two years I won’t have to pay the Perkins loan till after I complete my bachelors? What about the Stafford?</p>

4

<p>Same with the Stafford. I was just using the Perkins to illustrate an example.</p>

5

<p>Ok, thank you very much for helping me out</p>