Washington, D.C. – Today, Congresswoman Elise Stefanik’s (R-NY-21) announced that her legislation – H.R. 2482, the Federal Perkins Loan Extension Act of 2017, picked up its 52nd cosponsor. The bipartisan legislation extends the Federal Perkins Loan Program for a period of two years. The Federal Perkins Loan Program is a popular and effective financial aid program currently utilized by over 500,000 students nationwide.
“Perkins Loans are an important resource for low income families in our district who are pursuing their higher education dreams,” said Congresswoman Stefanik. “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 Loan Background:
H.R.2482 - Federal Perkins Loan Program Extension Act of 2017
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.
Perkins Loans borrowers are predominantly from lower income families and are often the first in their family to attend college. Unlike many other student loan programs, Perkins is 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. Perkins is a risk-sharing program with institutions contributing one-third of their students’ awards. This “ownership interest” also contributes to the successful management of this vital program.
- 67% of Perkins borrowers are dependent students, 34% of whom are from families with household incomes of less than $30,000.
- 20% of Perkins borrowers are independent students, 70% of whom have personal incomes of less than $20,000.
The Perkins Loan program is scheduled to expire on September 30, 2017 if Congress does not act to reauthorize this program. If the Perkins Loan is eliminated, around 500,000 students across the country will not be able to access much-needed financial aid.
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