Where does the money come from to fund the Perkins/NDSL and Health Professions loan funds?
When federal loan funds are set up, the government provides to the school an initial amount to start operating a loan fund. From there on, the loan fund is usually a revolving account, which means that the money we receive from the payments of former borrowers is used to loan out money to current and future borrowers. If you default on your loan, then less money is available to these borrowers. So remember, when you are making your payments, you are allowing future borrowers the same opportunity to borrow money as you did.
Related Questions
- How can I find out how much interest I paid on my Federal Perkins, Health Profession Student Loan or University Long Term Loan?
- How can I make a payment on my Federal Perkins, Health Profession Student Loan or University Long Term Loan?
- Where does the money come from to fund the Perkins/NDSL and Health Professions loan funds?
