Review:
Federal Perkins Loans (discontinued But Historically Related)
overall review score: 3.8
⭐⭐⭐⭐
score is between 0 and 5
The Federal Perkins Loan Program was a federally funded needs-based student loan program in the United States, designed to assist undergraduate and graduate students with low income. Administered until its discontinuation in 2017, it provided low-interest loans that were partially funded by the federal government and typically offered through college or university financial aid offices. The program aimed to help students cover educational expenses, often featuring favorable repayment terms and forgiveness options for those working in public service.
Key Features
- Low interest rates compared to private loans
- Interest subsidized by the federal government during school enrollment and/or certain repayment periods
- Availability primarily to students with exceptional financial need
- Disbursed through participating post-secondary institutions
- Options for loan forgiveness for qualified public service employment
- Loan limits varied based on student level and dependency status
- Discontinued in 2017, but previous loans still exist and are managed under federal guidelines
Pros
- Eligible students received low-cost financing for higher education
- Favorable interest rates and repayment plans
- Opportunity for loan forgiveness in certain public service roles
- Supported access to higher education for underserved populations
Cons
- Program discontinued in 2017, limiting future access
- Limited availability as it was targeted at specific groups with high financial need
- Complex application process involving institutional administration
- Servicing of existing loans can be challenging if not well-managed
- Perkins loans were relatively small compared to other federal and private loan options