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What Are Perkins Student Loans?
If you’re still repaying Perkins loans, here are your options — including 100% loan forgiveness.
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Eliza Haverstock is NerdWallet's higher education writer, where she covers all aspects of college affordability and student loans. Previously, she reported on billionaires and investing for Forbes in New York, and she also covered private markets for PitchBook in Seattle. Eliza got started at her college newspaper at the University of Virginia and interned for Bloomberg, where she spent a summer writing a feature story about plastic straws. She is based in Washington, D.C.
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Federal Perkins loans were available to undergraduate and graduate students with extreme financial need until 2018. The program began in the 1950s, first called National Defense Student Loans, then National Direct Student Loans, before assuming the Perkins moniker. Schools, not the government, disbursed federal Perkins loans.
Congress voted to end the program in 2017, and the last Perkins loans were disbursed on June 30, 2018.
In the final years of the program, eligible undergraduates were allowed to take out up to $27,500 in Perkins loans; graduate students could borrow an additional $32,500, for a lifetime maximum of $60,000 across undergraduate and graduate school. Every Perkins loan disbursed on or after Oct. 1, 1981 carries a fixed 5% interest rate.
Perkins loans were also subsidized, which means the government covered all interest that accrued while a borrower was in school and for a grace period after graduation. And unlike other federal student loans, they came with no origination fees.
Around 1.2 million borrowers are still repaying about $3.7 billion worth of Perkins debt, according to the latest data from the Federal Student Aid office. If you think you might have Perkins loans, here’s what you need to know about this discontinued type of federal student loan.
How do I know if I have Perkins loans?
To find out if you have Perkins loans, log into your account on StudentAid.gov. You’ll need your Federal Student Aid (FSA) ID and password to log in.
Once you get to your FSA dashboard, select “My Aid” from the dropdown menu. Under the “Loan Breakdown” section here, you can click “View Loans” and “View Loan Details” to see the detailed name of each of your federal student loans.
If you have a Perkins loan, the detailed loan name will include the word “Perkins.”
NerdWallet ratingNerdWallet's ratings are determined by our editorial team. The scoring formula for student loan products takes into account more than 50 data points across multiple categories, including repayment options, customer service, lender transparency, loan eligibility and underwriting criteria.
Fixed APR
3.19-17.99%
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. (1)All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation. (2)As certified by your school and less any other financial aid you might receive. Minimum $1,000. (3)This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. Information advertised valid as of 6/30/2025. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
Variable APR
4.24-17.99%
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. (1)All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation. (2)As certified by your school and less any other financial aid you might receive. Minimum $1,000. (3)This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. Information advertised valid as of 6/30/2025. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
NerdWallet ratingNerdWallet's ratings are determined by our editorial team. The scoring formula for student loan products takes into account more than 50 data points across multiple categories, including repayment options, customer service, lender transparency, loan eligibility and underwriting criteria.
Fixed APR
3.19-16.99%
Lowest rates shown include the auto debit discount. Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. Advertised APRs are valid as of 6/23/2025. Loan amounts: For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website will be subject to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time. Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. A variable APR may increase over the life of the loan. A fixed APR will not.
Variable APR
4.37-16.49%
Lowest rates shown include the auto debit discount. Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. Advertised APRs are valid as of 6/23/2025. Loan amounts: For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website will be subject to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time. Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. A variable APR may increase over the life of the loan. A fixed APR will not.
Federal Perkins loans were disbursed by the school you attended, so your school — or a student loan servicer hired by the school — typically holds and manages your Perkins loans.
In some cases, such as student loan default, a school may assign Perkins loans to the Education Department.
What are my Perkins repayment and relief options?
Since Perkins loans are usually held by schools or servicers that manage the loans on behalf of the school, repayment and relief options may vary depending on the school you attended. Typically, though, Perkins loan repayment plans split the loan amount into 10 years’ worth of equal monthly payments that carry a 5% interest rate.
Perkins borrowers have a nine-month grace period after graduating, leaving school or dropping below half-time enrollment during which they don’t have to make payments, and interest does not accrue. Schools (and their servicers) may also offer relief options like forbearance and deferments related to economic hardship, unemployment, illness, returning to school or active-duty military service.
Contact the school you attended or your student loan servicer to learn about the repayment and relief plans available for your school-owned Perkins loans.
If the government holds your Perkins loan, contact your federal student loan servicer to learn about repayment and relief options.
Perkins loan forgiveness
Perkins loans can qualify for a unique student loan forgiveness program available only for this loan type. If you work a public service job for at least four to seven years (depending on the type of job), you could get up to 100% of your Perkins debt forgiven.
You can apply for a portion of your debt to be forgiven as early as your first completed year in a qualifying public service position. The program varies by profession; go to StudentAid.gov to find the amount of Perkins loan forgiveness for which you could qualify.
Should I consolidate my Perkins loans?
You must consolidate your Perkins loans into a Direct Consolidation Loan if you want access to income-driven repayment (IDR) plans. These plans can shrink your payments to as low as $0 per month depending on your income and extend your repayment period to up to 20 or 25 years – then eventually forgive your remaining debt.
However, consolidating your Perkins loan comes with a downside: you’ll no longer be eligible for Perkins loan cancellation, which can forgive more debt — and do so more quickly — than PSLF. Consolidation could also lengthen your repayment period, which means you could pay more in interest over the long run.
Perkins loans are eligible for the IDR account adjustment, a one-time program that counts more past periods of repayment toward the number of months needed to reach IDR loan forgiveness.
The IDR account adjustment is automatic if the government holds your Perkins loans.
However, if your school holds your Perkins loans, you must consolidate them into a direct loan by the end of 2023 to qualify for the full benefits of the account adjustment. See if you’re eligible for Perkins loan forgiveness before taking this step. Under the account adjustment, borrowers with federal student loans in repayment for at least 20 or 25 years are expected to see their remaining balance forgiven by the end of 2023; all others will see their payment counts updated in 2024.
