A federal Perkins loan is a low-interest loan for undergraduate and graduate students with exceptional financial need. It is a part of the Federal Family Education Loan Program (FFELP). This loan is available to students who are enrolled in at least a half-time basis.
The Perkins loan program was created in 1958 to help low-income students attend college. The program has been expanded over the years to include graduate students and students with disabilities. Perkins loans are subsidized, which means that the government pays the interest on the loan while the student is in school and during grace periods after leaving school.