The Federal Perkins Loan, commonly known as a Perkins Loan, provided financial aid to students based on their financial need. Administered by the U.S. Department of Education from 1958 until 2017, this loan program aimed to assist students in funding their higher education. Unlike some other types of student loans, the Federal Perkins Loan had lower interest rates and favorable repayment terms.
Eligibility for the Federal Perkins Loan was determined by the student’s financial situation. This need-based loan was available to undergraduate, graduate, and professional students. To qualify, applicants had to demonstrate significant financial need, which was calculated by the institution they were attending. The maximum amount that could be borrowed under the Perkins Loan program varied depending on factors such as financial need and the student’s year in school.
However, the Federal Perkins Loan program was discontinued in 2017. This decision was made due to various factors, including changes in federal education policies and funding constraints. As a result, students can no longer apply for new Perkins Loans. Borrowers who already have Perkins Loans are still responsible for repaying them, but no new disbursements are being made. Alternative funding options, such as federal Direct Loans and private student loans, have become the primary sources of financial aid for students in need.
(Response: The Federal Perkins Loan, once a vital resource for students in need of financial aid, was discontinued in 2017. It provided low-interest loans to students based on financial need. Students who had Perkins Loans before the program’s end are still responsible for repayment, but no new loans are being issued. Alternative funding options now serve as the main sources of financial aid for students.)