The Federal Perkins Loan is both for undergraduate and graduate students who extremely need of financial assistance. This particular loan is a type of financial assistance provided for by the US Department of Education and the school where you attend contributes a share to this type of loan which means to say that your school is the lender where you make repayments to and not the government.

There are two factors on how the Perkins Loans are awarded:

  • Your needs
  • Availability of funds

The Perkins Loans are awarded to individuals who need financial assistance in order for them to attend college or university. If you apply for one and get accepted, the school you are going to attend will pay the loan amount to you via check or directly credited to your account. The loan amount is good for two installments within an academic school year.

The question here is whether consolidating Perkins Loans that are federally insured a wise choice or not. More often than not, the answer to this is that it is often not wise to consolidate the federally backed Perkins loans. Some lenders offering Perkins loans would advise you to make consolidation but usually not for your own benefit but for them. If you consolidate a higher loan balance with them plus the Perkins loan, you are allowing them to make even more money from you. Given the fact that you are financially needy especially if you are fresh graduate and trying to make a living still, this could pose some financial problem to you.