Legislation that would extend the Federal Perkins Loan Program for a period of two years is gaining widespread support in the House, picking up its 52nd cosponsor last week.
Absent Congressional action, the Perkins Loan program will expire at the end of September leaving around 500,000 students without access to important financial aid. The Federal Perkins Loan Extension Act of 2017 (H.R.2482), would extend it another two years.
“Perkins Loans are an important resource for low income families in our district who are pursuing their higher education dreams,” Rep. Elise Stefanik (R-NY), the bill’s original sponsor, said. “I am pleased that this legislation continues to gain momentum, and I will continue to work with my colleagues to ensure this legislation gets brought up for a vote.”
Perkins Loans borrowers are predominantly from lower income families and are often the first in their family to attend college. About 67 percent of Perkins borrowers are dependent students, 34 percent of whom are from families with household incomes of less than $30,000. Further, 20 percent of Perkins borrowers are independent students, 70 percent of whom have personal incomes of less than $20,000.
Unlike many other student loan programs, Perkins Loans are administered directly by colleges and universities who originate the loans, counsel their students through repayment, and select contractors for servicing and collection. Colleges and universities tailor the program to best fit borrowers’ and institutions’ situations. The Perkins Loan Program a risk-sharing program with institutions contributing one-third of their students’ awards.