Congress is unlikely to provide new funding for the 30 year old Perkins Loan program for those with “exceptional financial need.” In the total scheme of federal assistance for higher education, the Perkins Loan program is small stuff–about $1.2 billion in new Perkins loans were made for the 2013-14 school year, a fraction of the $100 billion in new loans Uncle Sam extended. But the program has filled an important funding gap for certain students deemed to have extra need, providing as much as $5,500 a year for undergraduates and $8,000 a year for graduate students at an interest rate of 5%, with no origination fee. Perkins loans are granted at the discretion of individual schools (which provide 25% of the funding) and are on top of the maximum of $5,500 to $12,000 per year in subsidized and unsubsidized Stafford loans available to undergraduates and the $20,500 a year in unsubsidized Stafford loans for graduate students. By using a Perkins loan to fill gaps in their financial aid packages, colleges have been able to help students avoid taking private loans, which may require a cosigner and/or high credit score.

July 13, 2015 ・ From Forbes.com