Review:
Perkins Loans (discontinued)
overall review score: 3.5
⭐⭐⭐⭐
score is between 0 and 5
Perkins Loans were a federal student loan program in the United States designed to provide low-interest, long-term loans to students with exceptional financial need. Administered through participating institutions, the program aimed to support students pursuing undergraduate and some graduate degrees. The Perkins Loan program was discontinued after the 2017-2018 academic year due to legislative changes and shifts in federal higher education funding priorities.
Key Features
- Closed to new borrowers after the 2017-2018 academic year
- Offered low-interest rates (typically 5%)
- Grace period of nine months after graduation or enrollment less than half-time
- Mandatory repayment terms, often ranging from 10 years
- Supported students with exceptional financial need
- Administered by participating educational institutions
- Loan forgiveness programs available for certain occupations
Pros
- Provided low-interest loans to students with significant financial need
- Long repayment period offered manageable repayment options
- Opportunities for loan forgiveness in certain careers
- Supported access to higher education for underserved students
Cons
- Program has been discontinued, making new borrowing impossible
- Limited availability post-2018, affecting future students
- Dependent on institutional administration, which could vary in quality
- Loan forgiveness programs are limited and eligibility criteria can be strict