Review:
Federal Perkins Loan (discontinued But Historically Related)
overall review score: 4
⭐⭐⭐⭐
score is between 0 and 5
The Federal Perkins Loan was a need-based student loan program in the United States, administered by participating colleges and schools, designed to provide low-interest loans to students with exceptional financial need. It was intended to supplement other federal aid and offered favorable repayment terms. The program was discontinued in 2017 due to funding limitations, but it played a significant role in helping low-income students access higher education for several decades.
Key Features
- Need-based loan aimed at students with exceptional financial need
- Low fixed interest rate (typically around 5%)
- Beanship by participating educational institutions
- Long grace period before repayment begins
- Flexible repayment options with options for cancellation for certain employment situations
- No accrual of interest during in-school and grace periods
Pros
- Provided vital financial support to low-income students
- Low interest rates compared to private loans
- Favorable repayment terms, including forgiveness options for certain careers
- No interest accrual during in-school and grace periods
Cons
- Limited availability after program discontinuation in 2017
- Funding was constrained, limiting the number of students served over time
- Application process could be complex for some students
- Managed by individual institutions, leading to variability in access and administration