Do all schools have Perkins loans?

CarerraGT

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i have a question regarding Perkins Loans. On UMDNJ -NJMS's website, they state that they have perkins loans that are offered. When I received my FA package, the only things that were on it were Unsub Stafford and Sub Stafford (and work study). Is there anyway that I can request to have Perkins loans substitute for some part of my unsub stafford and take out more money with that then? currently they gave me only 30k and i was hoping to get about 35k/year (with as much non-accruing loans as possible).

Do I talk to the financial aid counselor about this and ask for more or what? any advice will be greatly appreciated. Thanks
 
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mpp

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Perkins loans are typically better than unsubsidized Stafford loans since there is no interest while in school. Maximum for medical school is $6,000 per year. However, these are institutional loans (although it is federal money) so they are typically need-based. Check with the financial aid office in regards to eligiblity. Perkins loans have a fixed 5 percent interest rate (quite good although not quite as good as the current variable-rate Stafford loans).
 

critterbug

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mpp said:
Perkins loans are typically better than unsubsidized Stafford loans since there is no interest while in school.

I thought subsidized loans were the same, they don't accrue interest either? So technically, with variable interest rates the way they are now, isnt subsidized staffords the best option right now? Now, I know interest rates may change, but right now, sub's are better. right?
 

mpp

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It depends on what you think might happen to interest rates by the time you are out of school. Subsidized loans accrue interest when you are done with school. The Perkins Loan was thought thought to be a great deal when Stafford loans were at 7-8%, or worse in the days of no cap student loan interest rates were above 10%. Stafford loans are capped at 8.5% but the interest rate is variable and can change once each year. Perkins are fixed at 5%.
 

rmp

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mpp said:
It depends on what you think might happen to interest rates by the time you are out of school. Subsidized loans accrue interest when you are done with school. The Perkins Loan was thought thought to be a great deal when Stafford loans were at 7-8%, or worse in the days of no cap student loan interest rates were above 10%. Stafford loans are capped at 8.5% but the interest rate is variable and can change once each year. Perkins are fixed at 5%.

I just want to verify that I have this right. There is a max yearly limit of $6k for Perkins max aggregate of $40k. My question is does the $6k per year count against the $38,500 Stafford loan cap? Could I potentially receive $6k in Perkins and $38,500 in stafford?

Appreciate any responses.

Cheers!
rmp
 

4 Ever

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Im pretty sure that you could get the Perkins AND the stafford with the max limit. I will be going to the financial aid office and talking to someone about that so I can let you know

for myself, i just need 35 so i'm hoping that i can get the 8500 unsub stafford nd the 6000 from perkins instead of the other subsidized money from sub stafford so I can avoid interest on them
 

EM Junkie

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CarerraGT said:
Is there anyway that I can request to have Perkins loans substitute for some part of my unsub stafford and take out more money with that then? currently they gave me only 30k and i was hoping to get about 35k/year (with as much non-accruing loans as possible).

If they had money to give you in Perkins Loans, they likely would have already included it in your award letter. They only have so much to give, so they try to allocate it among the students they think have the greatest need. However, it never hurts to ask!

As far as the TOTAL amount, they would simply replace Unsubsidized Stafford Loans for the Perkins Loan, the total would remain the same. To get money in excess of the school's estimated cost of attendance + living expenses, you have to have special permission from the financial aid office.

For example, if you had children and needed to pay childcare expenses (and could provide proof), they may increase your total budget above the $30K. Other things you may get an increase in your budget for: unexpected medical bills, car repairs, computer for school, etc. However, if your school's budget is set at $30K for your first year, you cannot get extra financial aid money unless you meet one of their special criteria. Any additional money must be taken out as private loans through your traditional banks (Wells Fargo, Bank of America, etc.)

It was confusing to me at first, I was hoping to pay off some credit card debt and my truck with Unsubsidized Staffod Loans, then paying them back at the 2.5-3.5% interest rates.... TOO BAD IT DOESN'T WORK THAT WAY!

I hope this answers your question. If not, feel free to PM me, it took awhile to figure out the whole system!

-Scott, MS2
 
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