The program was named after Carl D. Perkins, a former member of the U.S. House of Representatives from Kentucky.
Perkins Loans carried a fixed interest rate of 5% for the duration of the ten-year repayment period.
The Perkins Loan Program had a nine-month grace period, so that borrowers began repayment in the tenth month upon graduating, falling below half-time status, or withdrawing from their college or university.
Perkins Loans were eligible for Federal Loan Cancellation for individuals choosing to work in a number of different public service occupations including early childhood education, elementary and secondary school teaching, speech therapy, nursing, law enforcement, librarian, public defense attorney, fire fighting and certain active duty military postings.
For example, forgiveness for teachers may be restricted to designated low-income schools or specific teacher shortage areas such as math, science, and bilingual education and forgiveness for nurses requires employment at a non-profit medical facility.