Review:
Perkins Loans (discontinued But Related)
overall review score: 3.8
⭐⭐⭐⭐
score is between 0 and 5
Perkins Loans were a federal student loan program in the United States designed to provide low-interest loans to students with exceptional financial need. Administered by participating colleges and universities, these loans aimed to help students cover educational costs. The program was discontinued in 2017, but it played a significant role in supporting income-eligible students during its operation.
Key Features
- Low fixed interest rate (typically around 5%)
- Borrowers could receive up to $5,500 annually, with a lifetime maximum of $27,500
- Served primarily students with exceptional financial need
- Repayment typically started after a six-month grace period post-graduation or enrollment less than half-time
- Loan forgiveness opportunities for certain public service jobs
Pros
- Provided low-interest, favorable repayment terms for needy students
- Supported underserved populations during their education
- Offered options for loan forgiveness in specific careers
Cons
- Discontinued in 2017, making new borrowing impossible under this program
- Limited availability only through participating institutions before discontinuation
- Some borrowers faced limited awareness or understanding of the program's benefits