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What is the difference between a Perkins and a Stafford loan?

Nicholas Rivera

in Student Loans

1 answer

1 answer

Eric Morgan on March 30, 2019

Stafford Loans are Title IV Federal debt. They are the most common financial aid for student loans-are GSL (Guaranteed Student Loans) that are backed by a federal law of guarantor. By default it's going to lead to severe penalties and you are subject to Administrative Wage withholding (no judgment needed) and have state and Federal tax interception - SSI & SSID are subject to liens as well. They are not dischargeable through bankruptcy. There are many government programs to assist if default occurs. Perkins loans are Federal but are actually backed by the University. Is granted when the additional financial Support that is needed, and they are low interest compared to Stafford. There are similar default penalties, however, they will not garnish paychecks or take the Federal tax. The non-payment of a Perkins Loan: If your Perkins loan has been breached, the only option that could have (apart from pay the loan in full) is to consolidate the loan with another federal loan. This is more likely to increase the interest rate of your Perkins loan. When you submit an application for consolidation, you must specify that it is an add-on loan, and the lender is the school that you borrowed. Government programs, such as 9 months of rehabilitation, the program will not work for this loan, as well as continue to make payments to a collection agency, the loan will remain in default and will not be updated on your credit report as being in good condition, until they are paid in full or consolidated as an add-on.

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