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More About PLUS, Perkins, & Private Loans
PLUS loans are made to graduate students and parents and are always unsubsidized. Which of these doesn’t apply to loans provided through the Perkins Loan Program?
- These loans are for students who have exceptional financial need.
- They are made through the student’s school financial aid office.
- They are unsubsidized.
“C” doesn’t apply. Perkins loans are subsidized. Interest starts accruing as soon as you receive funds. Because your school is your lender, you make payment to it when the loan comes due. The standard repayment period on Perkins loans is 10 years or less. Private loans are made without any government participation and usually aren’t subsidized. They sometimes offer less repayment options than federal loans, because they aren’t required to by law.