Review:
Perkins Loans (discontinued But Historically Related)
overall review score: 4.2
⭐⭐⭐⭐⭐
score is between 0 and 5
Perkins Loans were federal student loans issued to undergraduate and graduate students with exceptional financial need, provided through a cooperative effort between the U.S. Department of Education and participating educational institutions. Discontinued in 2017, these loans historically offered low-interest rates and generous borrower benefits, serving as a vital source of funding for students pursuing higher education with limited resources.
Key Features
- Administered by participating educational institutions on behalf of the U.S. Department of Education
- Designed for students with exceptional financial need
- Low fixed interest rate of 5%
- Typically have a grace period of nine months after graduation before repayment begins
- Borrowers could qualify for cancellation or non-repayment under certain conditions
- Funds directly disbursed through colleges and universities
Pros
- Offers favorable interest rates compared to private loans
- Provides critical financial support to students with limited means
- Flexible repayment options and forgiveness programs available
- Helped reduce student debt burden during active enrollment
Cons
- Limited availability after discontinuation in 2017
- Application process dependent on college participation
- Complex eligibility requirements for some borrowers
- As a discontinued program, no new loans are issued under this scheme