Facts about the University of Washington and the Perkins Loan Program
Perkins Student Loan Program
$27 billion dollars in loans to students since 1958
Revolving fund of $5 billion dollars (loans made through payback)
Funds controlled at the institutional level
Nearly 2,000 participating institutions
Discretionary federal capital contribution every year (participating institutions must match at least 25% percent of this contribution)
Interest rate of 5% percent
Allows students to take loans while in college without accruing interest, with nine-month grace period following graduation
Loans canceled for teachers in low-income areas, or of special education, science, foreign languages, or Head Start, and those working
in law enforcement, VISTA, Peace Corps, armed forces, and other areas benefiting society
2003-2004 630,000 students borrowed $1.46 billion dollars in Perkins loans (average of $2,003 award per student)
64% percent of borrowers are dependent students, 22% percent are independent, and 14% percent are graduate students
2002-2003: 71% percent of independent students receiving loan have income of below $20,000 dollars. 29% of families with dependent
loan-receiving students have incomes below $30,000 dollars
Effects of Proposed Elimination of Perkins Loan Program
Removing Federal Capital Contribution will remove loan opportunity from 10% of possible recipients (63,000 students)
Reduced financial aid for Grad. Students (can’t receive Pell Grants)
Removal of revolving fund will immediately remove option of loans for over 630,000 college students
Removal of loan cancellation for careers and service benefiting society
Students forced to borrow from high-cost alternative sources (i.e. credit cards, banks)
Congressional Budget Office projects it will cost $5 billion dollars more than current plan to eliminate Perkins Loans and reform
financial aid (see back page).
University of Washington (UW)
4,500 students participate in program (30% percent grad., 70% undergrad.) and receive a total of $15.5 million dollars in loans
$41 million dollars from UW will have to be returned to Federal Government if mandatory spending removed
10% percent (450 students) of UW Perkins Loan Recipients will lose loan opportunity without Federal Capital Contribution.
