	Introduction

The Federal Perkins Loan program is one of three postsecondary student financial aid programs that are collectively referred to as the campus-based programs. The Perkins Loan program authorizes the allocation of federal funds to institutions of higher education (IHEs) to assist them in capitalizing revolving loan funds for the purpose of making low-interest loans to students with exceptional financial need. The program is authorized under Title IV, Part E of the Higher Education Act (HEA). Each institution's ICC must equal one-third of the FCC received. Is the Perkins Loan program currently authorized? What is the funding status of the Perkins Loan program? Without new appropriations, how does the program continue to function? Additionally, IHEs may transfer up to 25% of their federal allotments under the Federal Work-Study program to their Federal Perkins Loan fund. What happens if authorization of appropriations for the Perkins Loan program expires? However, when IHEs end their participation in the Perkins Loan program, they are required to assign any outstanding loans to ED for collection. What would be the cost to the federal government if authorization of appropriations for the Perkins Loan program is extended?
The Federal Perkins Loan program authorizes the allocation of federal funds to institutions of higher education to assist them in capitalizing revolving loan funds for the purpose of making low-interest loans to students with exceptional financial need. Institutions participating in the program are required to provide matching funds equal to one-third of the federal funds they receive. Authorization of appropriations for the Perkins Loan program is due to expire at the end of FY2015, and the future operation of the program is uncertain. This report answers several frequently asked questions regarding the current and future status of the Federal Perkins Loan program, including the following:
Is the Perkins Loan program currently authorized? What is the funding status of the Perkins Loan program? Without new appropriations, how does the program continue to function? What happens if authorization of appropriations for the Perkins Loan program expires? What would be the cost to the federal government if authorization for the Perkins Loan program is extended?
The Federal Perkins Loan program is one of three federal student aid programs authorized by the Higher Education Act, which are collectively known as the campus-based programs. The Federal Work-Study program and the Federal Supplemental Educational Opportunity Grant program are the two other campus-based programs. For an overview of each of the campus-based programs, see CRS Report RL31618, Campus-Based Student Financial Aid Programs Under the Higher Education Act, by [author name scrubbed] and [author name scrubbed].