The Federal Perkins Loan Program is a federal student loan program that provides low-interest loans to undergraduate and graduate students with exceptional financial need. Perkins Loans are made through participating colleges and universities, and the funds can be used to pay for tuition, fees, books, and other educational expenses.
Perkins Loans have several advantages over other types of student loans. First, they have a low fixed interest rate of 5%. Second, they are not based on the student’s credit history, so students with bad credit can still qualify. Third, Perkins Loans are subsidized, which means that the government pays the interest on the loan while the student is in school and during certain deferment and grace periods. This can save students a significant amount of money over the life of the loan.