Review:
Perkins Loans
overall review score: 3.5
⭐⭐⭐⭐
score is between 0 and 5
Perkins Loans were a type of federal student loan in the United States designed to assist students with low income in financing higher education. Administered by participating institutions, these loans offered low interest rates and substantial grace periods, promoting access to college for underserved populations. The Perkins Loan program ended in 2017, but its legacy remains significant in discussions about federal student aid.
Key Features
- Federal government's loan program targeting low-income students
- Interest rate typically fixed at 5%
- Deferment options available while in school and during certain periods post-graduation
- Grace period of nine months after graduation or drop below half-time enrollment
- Repayment terms could extend up to 10 years, with opportunities for cancellation for certain service fields
- Administered by participating colleges and universities
Pros
- Low interest rates compared to private loans
- Generous repayment and cancellation options for specific employment sectors
- Interest does not accrue during the grace period if paid on time
- Provides access to higher education for low-income students
Cons
- Program was discontinued in 2017, limiting new eligibility
- Availability was limited to students attending participating schools
- Complex application process with paperwork requirements
- Lending capacity was finite, leading to limited funds at times
- Potential debt burden if not managed properly after forgiveness or cancellation ends