Reed Urges Congress to Renew Federal Student Loan Program
Press Release
U.S. Senator Jack Reed is calling on Senate Republicans to reconsider their blockade of a vital federal student loan program that is utilized by more than 9,000 students in Rhode Island to help them afford their college education. The popular Perkins Federal Loan Program, which expired on October 1, 2015 after Senate Republicans blocked legislation to extend it, is the nation's oldest federal loan program and is a critical financial aid tool that helps low-income students finance their education.
Created in 1958, Perkins provides a low-interest rate of 5% to help undergraduate, graduate, or professional students with exceptional financial need afford their education. No interest accrues until the student enters repayment, which starts after a nine-month grace period, giving the recent graduate time to get on his or her feet. The Perkins Loan Program also encourages public service, offering generous loan forgiveness for many public sector careers, including for school librarians, something that Reed has long-championed.
There are approximately 1,500 colleges that participate in the program, including nine schools in Rhode Island that currently offer Perkins loans. For the 2013-14 school year, the program lent over $1.2 billion to 539,000 students -- including over $18 million to more than 9,000 Rhode Island students. The U.S. House of Representatives unanimously approved an extension of the Perkins Program at the end of September, but it was blocked in the Senate on Wednesday.
"Perkins is a cost-effective program that has helped thousands of deserving students in Rhode Island finance their education. Without this assistance, students and families will face a gap in their ability to pay for college, and could be forced into risky, higher-cost private loans. Instead of discontinuing Perkins and making it more difficult for hardworking students to afford college, Republicans should work with Democrats to address college affordability and accessibility," said Reed.
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