Resources

What Is a PEF Loan?

Choose roles and act out the following.

BRAZILIAN BROTHER: When I came home from my mission, I really wanted to get an education. I tried and tried, year after year, but I just couldn’t get into school. I kept thinking the courses would get cheaper, but they were never cheaper. It was always more expensive, always harder, always harder.

HAITIAN SISTER: Without an education, it’s impossible in Haiti. You can’t live without an education.

ARGENTINE BROTHER: I have the same dreams as any young person in the Church—to start a family and serve in the Church. And in order to do these things well, I need a good job.

PRESIDENT HINCKLEY: In an effort to remedy this situation, we propose a plan—a plan which we believe is inspired by the Lord. … We shall call it the Perpetual Education Fund.

VANDERLEI: When I returned from my mission, I had no opportunity to study. Then, boom! The Perpetual Education Fund arrived, and I was so very happy! I went to the school, enrolled, and paid for the course. I gave it my best and I succeeded. I was the number one student in my class! Before I took the course, I was a laborer. Other people gave me orders. When I finished the course, I was hired to manage a team of 450 people, and today I have a much better salary. My wife doesn’t need to work anymore. She takes care of our children, which is the most important thing for us. And I am able to serve in the Church with love. I am able to serve with dedication. This has really changed my life and the life of my family.

NADINE: I must do everything I can to repay the loan, because I know that it will help others to participate and get an education. You’ve got to be honest if you are part of this program.

CARLOS: In my patriarchal blessing it mentioned that I would have this opportunity, and it was fulfilled. To us the Perpetual Education Fund is not just something temporal. To us it is a prophecy. It is sacred.

KEVIN: I felt that the prophet was looking at me, that he saw the conditions I was in. And I just felt that he said, “I need to help you.”

PRESIDENT HINCKLEY: The way before us is clear, the need is tremendous, and the Lord has pointed the way. It will become a blessing to all whose lives it touches—to the young men and women, to their future families, to the Church. We pray humbly and gratefully that God will prosper this effort.

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What Are the Requirements to Receive a PEF Loan?

• Participate in an Education for Better Work group; complete the PEF loan plan worksheet.

• Select a job, school, and program from the SRS Preferred Lists; exceptions by request.

• Choose a loan mentor to help with school, work, and loan commitments.

• Attend institute (for young single adults).

• Be age 18 or older.

• Be temple worthy and serve in a calling.

• Get an endorsement from a priesthood leader.

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How Can a PEF Loan Be Used? How Do Repayments Work?

PEF loans can be used to pay for:

• Education and training that lead to a viable local job or business.

• Tuition, books, and some supplies (tuition is paid to the school).

Guidelines for repaying loans are as follows:

• Specific amounts and repayment instructions are available for each country.

• Repayment is made by a combination of performance incentives and cash.

  • Incentives for performance will reduce the loan balance as follows:

    • 5% reduction of the annual loan disbursement for good grades each year (see PEF pamphlet for definition of good grades)

    • 10% reduction for completing the educational program (graduating)

    • 10% reduction for meeting plan goals (job and level of income)

    • Matching incentive of 25% for all on-time loan payments

    • Additional 10% reduction on remaining amount if loan is paid off early

  • Monthly loan payments while in school

    • First payment required before school is paid

    • Small monthly payment while in school for low cost, shorter programs

    • Larger monthly payment while in school for more expensive, longer programs

  • Monthly loan payments beginning six months after completion of school or withdrawal

    • Payment determined by loan amount and length of program

    • Includes a small amount of interest

    • Can be fully paid off in three to four years with full performance incentives

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The PEF Loan Mentor

Who is a PEF Loan mentor?

A PEF loan mentor is an adult who helps you succeed in school, work, and loan repayments. The PEF loan mentor is not a loan co-signer or guarantor and has no financial obligation associated with the PEF loan.

How do I select my PEF loan mentor?

Ask a responsible adult to be your PEF loan mentor. You might choose someone who knows about your plans, including those you talked to about jobs or schools. He or she could be a Church member or someone who is not a member.

To access the PEF loan mentor page on the PEF website, the PEF loan mentor will need an LDS account. You will need the following information from your mentor to complete your online PEF loan application:

1. LDS Account username (optional) (LDS Accounts are available to everyone.)

2. Phone (primary)

3. Phone (secondary)

4. Email

Your PEF loan mentor will be contacted by a PEF representative to accept the responsibilities of a mentor.

What will my PEF loan mentor need to know and do?

Your mentor:

• Should know that he or she is not financially responsible for your PEF loan.

• Will offer you encouragement and advice as you encounter educational, work, or repayment challenges and help you keep your commitment to repay the PEF loan.

• Needs to accept telephone calls or electronic messages from PEF representatives and priesthood leaders to discuss your progress.

• Should maintain the confidentiality of your loan information.

• Agrees and consents that PEF can access, collect, and process information from Church membership records for purposes related to his or her role as a PEF loan mentor.

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PEF Loan Plan

Complete this plan at home, not during the meeting. Use information from your Education for Better Work workbook. Show this plan to your priesthood leader during your PEF loan endorsement interview.

My Mentor (from Week 4, page 71)

Name:

LDS Account username (optional):

Phone (primary):

Phone (secondary):

Email:

My Work Plan (from Week 1, page 14)

MY WORK PLAN: WHAT WORK COULD HELP ME BECOME SELF-RELIANT?
Current Work
Hours you work per week (all jobs):
Work title(s):
Income per month:

Future Work (must be on the SRS Preferred Jobs List or an exception must be requested)
Future work title:
Estimated income per month (after completing program):

My Education Plan (from Week 2, page 34)

MY EDUCATION PLAN: WHAT EDUCATION OR TRAINING WILL QUALIFY ME FOR MY WORK?
School chosen (from the SRS Preferred Schools and Programs List):
Major or program (from the SRS Preferred Schools and Programs List):
Preferred job (from the SRS Preferred Jobs List):
With this loan request, when will you start school?
Planned graduation month and year:

PEF Loan Plan (continued)

My Income and Expenses (from Week 3, page 47)

ADD MONTHLY INCOME (include spouse’s income, if married)
Income from work
Family contributions for education costs
Other income
Other income (monthly)
“A” Total Monthly Income

ADD MONTHLY EXPENSES
Tithes, offerings
Savings
Food
Housing
Water
Medical expenses
Transportation
Educational expenses
Debt payments
Clothing
Electricity
Phone
Other
“B” Total Monthly Expenses

Now, calculate how much you can pay for your education each month:

“A” Total Monthly Income – “B” Total Monthly Expenses = “C” x 12 (months) = “D” .

My Education Costs (from Week 3, page 48)

MY EDUCATION FINANCE PLAN (for one year)	Chosen School
Tuition (one year)
Add Exams and other fees (entrance, license, certification, final exam, and other fees—one year)	+
Add Books and supplies (one year)	+
Subtract Scholarships or grants (if any—one year)	-
“E” My Education Costs (one year)	=
“D” What we can pay (one year)	-
“F” Left to pay (one year)	=

Facilitator Endorsement

(name) has completed four lessons of Education for Better Work and is ready to apply for a PEF loan.

Facilitator’s name

Facilitator’s signature

Date

Priesthood Leader Endorsement

This form is available at your stake self-reliance center or online at srs.lds.org/pef. Bring your PEF loan plan (pages 73–74) to your priesthood leader endorsement interview.

Essential Self-Reliance Doctrines for Priesthood Leaders and Applicants

Faith in Jesus Christ D&C 104:15; Ether 12:27	Trust that it is God’s purpose to provide for His Saints’ temporal needs and that He has all power to do so.
Obedience D&C 130:21; Matthew 7:21	The blessing of self-reliance depends on obedience to the laws and ordinances upon which self-reliance is predicated.
Individuals Must Act 2 Nephi 2:16, 26	Self-reliance is self-help, not entitlement. You must work. You are to act and not be acted upon.
Unity and Service Moses 7:18; D&C 56:16–17	The poor and the rich must be one. All must serve and love one another.

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Connecting to the Online PEF Loan Application

In order to apply for a PEF loan, you must complete an online loan application at srs.lds.org/pef using your LDS Account.

PEF loan mentors who have an LDS Account may access their PEF loan mentor page on the PEF website.

If you have served a mission recently, you may already have an LDS Account. If not, you can obtain an LDS Account at ldsaccount.lds.org.

General Questions

1. What is an LDS Account?

   LDS Account is the sign-in system (username and password) for most Church websites, including ldsjobs.org, family history, online missionary applications, and ward or stake websites.

2. Do I have to be a member of The Church of Jesus Christ of Latter-day Saints to use LDS Account?

   No, you do not. While members of the Church will have access to additional resources specific to their membership (required for a PEF loan), anyone is free to register for an account as a “friend” (including nonmember loan mentors).

3. What information will I need to set up my LDS Account?

   If you are a Church member, you will need your membership record number, your birthdate, and a valid email address. You may find your membership record number on your temple recommend or by speaking to your ward or branch clerk. If your loan mentor is not a Church member, he or she will need to provide his or her name, birthdate, gender, and country.

   To access the online PEF loan application, we will need:

   1. Basic information about self and family

   2. Signed Priesthood leader endorsement

   3. Completed “PEF Loan Plan”

      • Mentor Info

      • Work plan

      • Education plan

      • Education Finance Plan

      • Facilitator Endorsement

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I Have Two Hands to Work

Take turns reading this story about Arturo, a Church member from Peru.

Leaving the mission field was not easy. I had so many goals and dreams; but when I came back I had to face reality. I did not have any skills and not much income. Finding a job was not easy.

Eventually, I set up a fruit stand, and with that money I paid for school, helped at home, and paid my tithes and offerings.

I did that up until that September. As I was selling my fruit, a wine truck came behind me and hit me. It smashed me against the wall and mutilated my right leg. I lost my right leg and went blind in one eye. My right arm and left leg were injured as well.

After all of that, I heard the prophet say that poverty should be eradicated, and that returned missionaries who did not have financial resources would be able to get an education. The Perpetual Education Fund would be created for youth with high aspirations. It was true that I had lost my leg and my eye but not the desire to live or to continue dreaming. I decided to fight to reach my goals.

Thanks to the Perpetual Education Fund, I finished my vocational training in three years, and then I wanted more. I applied and was accepted at the university.

I am currently working on my own as a help desk representative. I provide customer support and technical computer support for some companies in the morning until about 4:00 p.m. I also repair computers at home. In the evenings I attend school. I leave at 5:00 and I start classes at 6:00. The classes last until 11:00 p.m. I catch a taxi around 11:30 to get home between midnight and 12:30. I eat something, review my school work and go to bed. The next day I get up early to go to work or to find work. I work until 2:00 or 3:00 p.m. and then I head to the university.

I am very grateful to God for everything I have. I would like to pay Him in some way for all He has done for me. I don’t do much and I will always owe him. I serve as a volunteer in the call center in the Church offices of the Perpetual Education Fund.

In two and a half years I see myself graduated as a systems engineer. In five years, I’ll be working at an important company to sustain my family and also my future family and children.

My goal is to get married in the temple. That is why I study, and that is why I work. And that is why I fight every day.

I know it’s not going to be easy, but I have learned that the Lord never gives us commandments without preparing the way.

He has given me life. He has given me the Perpetual Education Fund. He has given me two hands to be able to work, a brain to think, a mouth to speak, and a heart to feel and to go forth with my dreams.

I know everything is possible, as Paul said: “For my strength is made perfect in weakness.” The Lord has helped me.

Everything I have—my family, my school, and even my life—I owe it to God. Everything comes from His hands and I am thankful for that.

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