What is the difference between a federal Perkins loan and a subsidized direct loan?

Jul 12, 2008 by goody | Posted in Financial Aid

So I recieved my Financial aid reward for college and was offered a perkins loan and a subsidized direct loan. My question is what is the difference and If I were to choose only one which one would be better. both are of the same amount.

The Perkins loan has the lowest interest rate of any federal financial aid loan - the fixed rate on the Perkins is 5%, versus 6% for the subsidized Stafford that you were also offered. The Perkins is offered to students who are judged to have "exceptional" need.

The Perkins is also superior because there are no "origination" fees associated with it. The full amount of the loan will be credited to your student account, unlike the Stafford, which has a 2% origination fee. This is because the lender on a Perkins loan is your school, rather than a bank.

The only possible downside of the Perkins (compared to the Stafford) is that the repayment period on a Perkins loan is 10 years, whereas the repayment on a Stafford ranges from 10 to 25, depending on the amount borrowed.

I hope that helped - by the way, the Stafford is an excellent loan, too - far better than anything you could get from any non-governmental (private) source.

Good luck!

How long does it take to recieve your finacial aide and Direct Loan Check?

Sep 08, 2007 by cc | Posted in Financial Aid

I was wondering about how long after you have applied for Finacial aid and applied for a Direct loan do you get your check?

After you have completed the FAFSA you will receive a SAR via mail - the school you have chosen to attend receives it as well. Disbursements of Pell Grants and Stafford Loans are done based on the school's Disbursement schedule - check with the financial aid office at the institution you are attending.

Am I getting only loan offers and no direct aid through the FAFSA?

Mar 15, 2008 by starlight43 | Posted in Financial Aid

I received an offer of financial aid letter from a college, and it only listed amounts for Federal Work Study Eligibility, Federal Perkins Loan, and Federal Direct Loan. Does this mean that I am not receiving any other direct aid thorough the FAFSA?

Do I really have to fill out a Direct Loan Exit Interview?

Oct 31, 2008 by spiderman120988 | Posted in Financial Aid

Hi, I used to go to Long Island University Brooklyn Campus and I took out Direct Loans but then I transferred out to CUNY City Tech. Now LIU wants me to fill out an exit interview which means I'd have to start repaying my loans. How can this be when I'm STILL in school?

First dont panic. You dont have to pay back the loans if you will be attending elsewhere. It is common practice that if you leave a school for any reason, even if you go to another one, to complete an exit interview. LIUB is just following regs since you will no longer will be attending there. They really dont know where or what you will be doing. So complete the form and send it where they want to you. The direct loan program will see you are attending the new school and you will retain your deferment status. Trust me you will be fine.

How good of credit do you have to have to receive approval on a federal direct plus loan?

Jun 25, 2007 by qdl3288 | Posted in Personal Finance

If my parents wanted to take out a federal direct plus loan, what are the chances of approval if there credit is not good but not horrible either with a credit score between 630-640 and prior bankruptcies.

it depends on how long ago the bankruptcy took place. with a score like that, I can't imagine that it happened recently. You should try obtaining a loan with you name, even though the parents still have to provide information for themselves. They are usually pretty good about approving people who are in a real financial need for money. The first step that should/should have been done, was to file a FAFSA. Based on that, you can find out what financial aid you qualify for, which includes federal direct stafford loans.

How do i get my federal student aid direct loan audited?

Mar 15, 2007 by sidebyrne7 | Posted in Financial Aid

I am disputing my billing history but have gotten no where with the "customer service" people on the phone. there has to be a way to get my loan audited. please, help!

To dispute any federal student loan issue, you'll probably get the best results from the FSA Ombudsman's office, which is sort of like the Department of Education's version of the Better Business Bureau. You can contact them at:

U.S. Department of Education
FSA Ombudsman
830 First Street, NE
Fourth Floor
Washington, DC 20202-5144

Phone: 1-877-557-2575
Fax: 202-275-0549

Online: http://www.ombudsman.ed.gov/about/contactus.html

Hope this helps!

Christopher S. Penn
Producer, the Financial Aid Podcast
Daily free financial aid internet radio, no iPod required
http://www.FinancialAidPodcast.com
FinancialAidPodcast [at] gmail [dot] com

What is the difference between a Federal Direct PLUS Loan, and a PLUS loan from a different lender...???

Aug 01, 2008 by event horizon | Posted in Financial Aid

What is the difference between a Federal Direct PLUS Loan, and a PLUS Loan offered by an alternate lender (a bank for example, like Chase)

Federal loans usually have lower rates, but they can come after you easier if you don't pay up.

How do i register for a federal direct subsidzed stafford loan?

Jun 27, 2008 by Danny | Posted in Financial Aid

I recieved a federal direct subsidzed stafford loan for my financial aid package. Is the lender the gov't? Or do I have to pick a bank to borrow from?

The Federal Govn't is your lender. You will need to go to https://www.dl.ed.gov/borrower/BorrowerWelcomePage.jsp to complete entrance counseling and you will need to go to https://dlenote.ed.gov/empn/index.jsp to e-sign your Master Promissory Note.

Check with your financial aid office to see if you have to sign a Direct Loan Certification Form, if you have to do anything specific at your school to let them know you are accepting the loan.

i am caling crisis loan direct and have been on hold for the past three hours. How long should it take?

Jan 03, 2007 by Tim h | Posted in Law & Ethics

i have not recieved my benefit as i should have so i phoned the jobcentre plus and was told i needed to call crisis loan direct to apply for money while my claim gets sorted. i have been on hold for 4 hours and keep getting told the call will be answered as soon as possible. i have no money no food no electric what can i do?
thank you for your interest but i would love to work but am unable and in receipt of incapacity benefit.

it doese take a long time to get through to these people u have to keep trying but be careful how much u get as they have it all back and to all the prats who said get a job GET A LIFE somepeople can t help it i claim benifits and would rather not but i have a broken back lazy bum am i

I am a graduate student. If I am over awarded, do I need to pay back federal direct loan right away.?

Oct 13, 2006 by happy_boy | Posted in Financial Aid

I am a graduate student. I received federal loan at the begining of the semester and then I received fellowships which make the total aid more than cost of attendance. Do I need to pay back direct loan amount I received in this semester right away.

No, the loan is still yours. However, if you don't need the money it is best to pay it back before it accumulates interest.