Carl Perkins Loans in California

Carl Perkins loans in California are also known as federal Perkins loans, and provide financial assistance to college students in their post-secondary education. Carl Perkins loans are named after the former member of the U.S. House of Representatives. In order to gain access to the federal Perkins loan program in CA, students must first meet eligibility requirements, and then apply for loan assistance. Continue reading the below sections to find out everything you need to know about the Carl Perkins loan in CA.

The Federal Perkins Loan Program

Financial aid made available through the federal Perkins loan program consists of low-interest loans for undergraduate and graduate students who are in exceptional need. Carl Perkins loans have low interest rates, which are only charged when recipients begin repayments, nine months after graduation. Not all schools participate in this loan program. You will need to check with your school’s financial aid office to find out about participation. The loan is made out to you by your school, and you will make loan payments to your school’s loan servicer (the representative at your school who is responsible for collecting loan payments).

You can use your California federal Perkins loan to pay for your cost of attendance, including tuition expenses, books and transportation to classes. You can also use your Carl Perkins loan to pay for room and board. The federal Perkins loan program is only awarded to students with exceptional need. Because each school has a different budget allocated to Perkins financial aid, each will have an individual income cutoff point. The amount you can borrow will depend on your financial need, whether or not you receive any other aid and the availability of Perkins funds at your college. To learn more about the federal Perkins loan program, download our free guide.

Eligibility for Carl Perkins Loan Application

You may be eligible for a Carl Perkins loan if you meet the state’s qualifications. First, you must prove you are a part-time or a full-time undergraduate or graduate student with exceptional financial need. Next, you must ensure your school participates in the Federal Perkins Loan Program. To learn more about your eligibility for Carl Perkins loan application, download our comprehensive guide.

How to Apply for the Perkins Loan

The Perkins loan in California has no individual application. Instead, you apply for the Federal Perkins Loan Program by submitting a Free Application for Federal Student Aid (FAFSA). There is no fee to file the application. First, confirm that your school offers the Perkins loan. You can do this by asking a representative at your school’s financial aid office. You will then need to check the timeline for submitting your FAFSA. Find out the federal and state deadlines for applying for student aid. Don’t leave it until the last minute to submit your FAFSA package. Gather up all the information you need about yourself and your parents – if you are a dependent student. Within three to five days of submitting your FAFSA, you will receive an email with instructions on how to access your Student Aid Report.

When do I have to pay back my Perkins Loan?

You do not have to begin making repayments to the federal Perkins loan program as long as you are attending school at least half-time. Then you will start making Perkins Loan payments nine months after your graduation. If you are attending college less than half-time, then you will need to consult with your college financial advisors to find out what your grace period will be. Other than the low-interest rate, there will be no charges made. If you miss a payment, you make a late payment or you make a payment that is too small, then you may have to pay a late fee and collection costs. You have up to 10 years to repay your Perkins loan. If you lose your job or you are suffering financial hardship, then you can contact your school, and the financial office may arrange for you to skip a few payments. However, bear in mind that the interest will continue to accrue.

Canceling your Federal Perkins Loan

You can partially or fully cancel your Federal Perkins loan at any time before the money is disbursed by contacting your school. You can only cancel a Perkins loan that has already been disbursed under very specific circumstances, which including the following:

  • The borrower is deceased
  • The borrower has become completely disabled
  • The program closes before the degree has been completed
  • The borrower declares bankruptcy (this is only under other rare circumstances)

The main advantage of the federal Perkins loan program is its desirable interest rate. The Perkins loan interest rate will remain the same, even if the national interest rate rises, providing you meet your repayment conditions. Another advantage of filing a Carl Perkins loan application is that loan insurance is available at no cost. This means if you were to die or become injured or disabled and unable to work, then the insurance would repay your loan. Additionally, loan forgiveness programs enable you to reduce the size of your loan if you work in certain professions such as law enforcement, U.S. military, firefighting, public education and legal public defense. For those interested in interest-free options, consider learning how to apply for Pell Grants and Cal Grants in California, instead.

To review more information about Carl Perkins loans, download our complimentary guide.

What Kind of Employment Development Services Are Available in California?

If you are currently unemployed and need help finding a job, the state of California offers unemployment benefits to eligible applicants, in order to help them get by while pursuing work. In addition to financial assistance, the Employment Development Division of California also offers training benefits, which allow unemployed individuals to learn new skills and get a higher education so that they can earn a better living. Find out more about these employment services by downloading our guide.

What Education Assistance Is Available in California?

Just as unemployed individuals can benefit from services offered by the state, so too can college students. California students can qualify for financial aid from the government, such as loans and grants, which can help them cover the costs of higher education. Find out how you can get financial assistance for your schooling by downloading our guide.