Government stops funding for Federal Perkins Loan - WAOW - Newsline 9, Wausau News, Weather, Sports

Government stops funding for Federal Perkins Loan


After 60 years of providing funds for college students, the Federal Perkins Loan is ending.

The loan program offered low-interest loans and 9-month grace periods for students to pay back.

Financial aid staff at UW-Stevens Point said they're concerned on the impact it will have on future students.

The program has funded over 30 million students. Just last year over 2,000 UWSP students received the Perkins Loan.

 "This is a significant amount loss to our students of a very good program," Financial aid associate director Carol Scipior said.

The average loan amount awarded was $2,000 per year.

UWSP's Bursar Terri Chang said the government is debating whether or not to restore the loan or create a "One Loan" program.

"I much rather see the Perkins Loan receive the support to bring it back," Chang said. "Otherwise I hope something as beneficial comes from the government."

UWSP staff said they've reached out to parents and students about the change, and advised them to take a careful look at their future budget.

"I don't think that they'll probably realize the true impact on it until next year when they file their FAFSA," Scipior said.

Directors said the loan will officially stop disbursing funds in June of 2018.

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