A federal Perkins loan is a type of federal student loan program based on financial need. This program was a type of educational financial aid provided through the US government's Perkins Loan Program.
The loan was either paid directly to the student or the loan amount was applied towards institutional fees and eligible educational expenses. Technically, Perkins loans were only subsidized by the government.
Both undergraduate and graduate students may receive loans under the Federal Perkins Loan Program. Eligibility for a Federal Perkins loan is somewhat complicated, and can vary on a case-by-case basis..
Because Perkins loans are only available to financially needy students, these loans have the most opportunities for loan forgiveness. If you meet the loan waiver criteria, your entire or part of the loan is repaid.
Undergraduate students may borrow up to $5,500 per year and $27,500 in total. Graduate and professional students may borrow up to $8,000 per year and $60,000 in total.
Due to budgetary issues, the federal government began eliminating the Perkins loan in 2015, but later extended the program until 2017 in the hope that a more permanent solution would be created.