Federal Perkins Loan

What Is a Federal Perkins Loan?

Federal Perkins Loan was a need-based federal student loan program that provided low-interest loans to students with exceptional financial need.

The program was administered through participating colleges and universities, which acted as the lender using funds partially provided by the federal government.

Federal Perkins Loans offered favorable terms compared with many other student loans, including a fixed interest rate and certain loan forgiveness opportunities for borrowers working in public service fields.

Program Status

The Federal Perkins Loan Program ended on September 30, 2017. New Perkins Loans are no longer issued.

Borrowers who previously received Perkins Loans may still be repaying them or may qualify for forgiveness programs depending on their profession.

Federal student loans are now primarily issued through the William D. Ford Federal Direct Loan Program.

Why It Matters

Federal Perkins Loans were designed to help students with significant financial need access higher education.

Key benefits historically included:

Low fixed interest rate
Loan forgiveness options for certain careers
Deferment and cancellation benefits

Borrowers with existing Perkins Loans may still qualify for specialized forgiveness programs, particularly in education and public service roles.

How Federal Perkins Loan Works

Federal Perkins Loan was awarded to eligible students through their school’s financial aid office.

Example: A student with high financial need might have received a Perkins Loan as part of a financial aid package, with funds disbursed directly by the college.

Repayment typically began after graduation or when the student dropped below half-time enrollment.

Borrowers repay the loan to the school or its loan servicer.