Here are frequently asked questions and responses about the Perpetual Education Fund as provided by the Church Public Affairs Department.
What is the Perpetual Education Fund?
Modeled after the Perpetual Emigration Fund developed during the Church's early pioneering years, the Perpetual Education Fund is an inspired program to help returned missionaries [in developing areas of the Church, initially Peru, Chile and Mexico] receive training and education that lead to employment so that they may better provide for their families, and grow in leadership and responsibility in the Church. It will strengthen individuals, families and communities. The fund also serves as a catalyst to encourage and coordinate efforts by several Church organizations to meet these purposes.
Why did Church leaders decide to implement this program?
President Gordon B. Hinckley said: "It is our solemn obligation, it is our certain responsibility, my brethren, to 'succor the weak, lift up the hands which hang down, and strengthen the feeble knees.' We must help them to become self-reliant and successful. I believe the Lord does not wish to see His people condemned to live in poverty. I believe He would have the faithful enjoy the good things of the earth. He would have us do these things to help them. And He will bless us as we do so."
Who administers the Perpetual Education Fund?
The fund will be administered locally by area presidencies. They will work through Church Educational System (CES) leaders and teachers, in conjunction with Church Employment Resource Services (ERS) managers. Together they will help applicants search out and select a viable career, choose a good local school and seek other available education funding such as grants or scholarships. These leaders will distribute and accept P.E.F. applications and then forward them to the P.E.F. Department in Salt Lake City. Once applications are approved, the local institute director will inform the participants. The institute director also will answer questions and guide students as they progress.
How are funds raised for P.E.F. loans?
Funds are donated by members and friends of the Church. Donations may be made through local units of the Church using the "Other" category on standard donation slips. For larger or more complex contributions, whether in cash or in kind, the LDS Foundation is prepared to offer helpful ideas and assistance.
What do young people have to do before applying for a loan?
First, they must seek to pay for their education by using their personal resources obtained through work, savings and family support. Second, they should access local education funding programs, such as college work programs, grants and scholarships, or education loans. When other resources are unavailable or insufficient, applicants may apply for a P.E.F. loan. In addition, they will receive career training through the institute or E.R.S.
How do young people apply for a P.E.F. loan?
Applications for a P.E.F. loan are available through the local institute director. The application requires statements about participants' commitment to Church standards and loan repayment, their education and career plan, and current financial situation. All application information is kept confidential.
What are some of the loan details?
P.E.F. loans are used only for the costs of tuition, books and fees — paid directly to the school.
Typically, P.E.F. loans are used for schooling completed in two years or less; however, a P.E.F. participant may qualify for up to four years, depending on the course of study.
The typical repayment period is five to 10 years.
Personal Progress Reports are required periodically to verify effort and success in school.
Interest is charged at 3 percent per year and begins to accrue after graduation.
A professional institution such as a bank manages the loan; payments are made to that institution.
In the event of a serious personal challenge, a deferral or adjustment of the loan payments may be granted.
How are participants selected?
Applications are sent through the CES Area Director to the P.E.F. loan committee in Salt Lake City. Typically, about 30 days are required to transmit and consider an application. Written approval is sent to the applicants through their institute directors.
When will P.E.F. be available to other countries?
The P.E.F. program has been implemented in Mexico, Peru and Chile, and is in process in Brazil. The Church will be working to expand this program in other countries in the following months.
