The Perkins Loan used in financing college is more important than most people realize. This loan provides something that benefit's the majority of college students, a low-interest source of funding for higher education.
What few people realize is that part of the next year's Perkins Loan Program is funded by the money you pay back on your loan now. So when a borrower fails to pay back their loan and defaults, that makes less money available to students applying for aid the following academic year.
It may sound corny, but by being responsible and paying your loans back promptly, you are actually helping students who are currently in the position you just occupied. This is one very important way that students can help each other to deal with college expenses.
It may not seem like it would make much of a difference, but monthly payments from hundreds of thousands of students each year really does add up. It is only fair that everyone do their part.
|Jennifer Mathes, Ph.D.|