Other frequently asked questions
Where is the Perpetual Education Fund available?
What can all members of the Church do to help?
Who makes PEF loan decisions? How long does it take?
Who manages the loans, and what may PEF loans be used for?
When and how is a loan repaid? What are loan and payment terms?
How do local priesthood leaders help students succeed?
Who directs the Perpetual Education Fund?
How are contributions used?
Where is the Perpetual Education Fund available?
The Perpetual Education Fund is currently available for Latin America, Caribbean, Philippines and Africa Southeast. Other areas will be added as soon as possible.
What can all members of the Church do to help?
- Pray with faith. “We pray humbly and gratefully that
God will prosper this effort and that it will bring blessings, rich
and wonderful, upon the heads of thousands. . . . [We solicit] your
interest, your faith, your prayers, your concerns in its behalf” (Gordon B. Hinckley, Ensign, May 2001, 53).
- Contribute to the fund. “Some have already given very
substantial amounts. . . . But we will need considerably more. We invite
others who wish to contribute to do so” (Gordon B. Hinckley, Ensign, May 2001, 53).
- Reach down to lift and help. “It is our solemn obligation,
it is our certain responsibility . . . to ‘succor the weak, lift
up the hands which hang down, and strengthen the feeble knees’
(D&C 81:5)” (Gordon B. Hinckley, Ensign, May 2001, 53).
Who makes PEF loan decisions? How long does it take?
- A loan committee in the Church’s Perpetual Education Fund Department
decides who receives loans and the amount of each loan.
- Loan approval is based on each student’s application and the
availability of funds.
- Decisions are sent to the local institute director about 30 days after the application is submitted.
Who manages the loans, and what may PEF loans be used for?
- Individual loans are usually managed by local banks or other financial
institutions.
- The financial institution usually makes payments for school costs
directly to the educational institution.
- Typically, loans are used to pay for vocational or technical training
that will be completed in two years or less. However, a participant
may qualify for up to four years, depending on the course of study.
- Loans are typically used only for the costs of school tuition, books,
and fees.
When and how is a loan repaid? What are loan and payment terms?
- Soon after they start school, participants begin making small monthly
payments to the bank. These payments are applied to the loan principal.
- After graduation, participants begin a schedule of larger monthly
payments for 2 to 8 years, including a small amount of interest (3%)
and an inflation factor set by the Church.
- Participants strive to repay the loan as soon as possible to become
free of debt and to bless others who need help.
- In the event of a significant personal challenge, a deferral or an
adjustment of loan payments may be granted.
The payment process follows this pattern.
The amount of your payments after you graduate will depend on how much you borrow and how fast you are able to repay your loan. This chart will give you an idea of how much your payments might be. Find the number on the left that is closest to the total amount you plan to borrow. Then look across the chart to see how much you would pay each month, depending on how fast you want to be free of debt. Figures are provided in US dollars.
* These monthly payments would be too small. The goal is to pay as much as possible each month to repay your debt and to allow others to be blessed.
How do local priesthood leaders help students succeed?
“The program is priesthood-based, and that is why it will succeed” (Gordon B. Hinckley, Ensign, Nov. 2001, 53).
- Area Presidencies provide leadership.
- Stake presidents and bishops seek worthy young adults in need, help
them enroll in institute, stay close to them, and sustain them.
- Priesthood leaders also work with institute directors and Employment
Resource Services directors, who help young adults see their potential;
choose a career and a school; plan their finances; obtain funding from
personal, family, and community resources; and work to achieve their
goals.
- Institute directors keep track of the students’ progress.
Who directs the Perpetual Education Fund?
- An oversight board in Salt Lake City, including the First Presidency,
members of the Quorum of the Twelve Apostles, other General Authorities,
and general auxiliary leaders.
- Volunteers, including the managing director, who is an emeritus member of the First Quorum of the Seventy, and other capable executives.
- The Church Educational System, the Welfare Department, and many others
who contribute expertise and resources.
How are contributions used?
- All money donated to the fund is used to provide educational loans. None is used for administrative costs.
- Contributions and loan payments are added to the corpus, or body,
of the fund.
- Earnings from the corpus are the primary source of loans to qualified students.
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