# Why do some US colleges not offer Perkins loans? **URL:** \ **Category:** Factual Questions\ **Created:** [January 17, 2011, 2:21am UTC](https://boards.straightdope.com/t/why-do-some-us-colleges-not-offer-perkins-loans/567896 "2011-01-17T02:21:07Z")\ **Posts on this page:** 7\ **Page:** 1
**Author:** ![Shmendrik](https://avatars.discourse-cdn.com/v4/letter/s/ee7513/32.png) [@Shmendrik](https://boards.straightdope.com/u/Shmendrik)\ **Post date:** [January 17, 2011, 2:21am UTC](https://boards.straightdope.com/t/why-do-some-us-colleges-not-offer-perkins-loans/567896/1 "2011-01-17T02:21:07Z")
See title. ---
**Author:** ![Lamar\_Mundane](https://avatars.discourse-cdn.com/v4/letter/l/85f322/32.png) [@Lamar\_Mundane](https://boards.straightdope.com/u/Lamar_Mundane)\ **Post date:** [January 17, 2011, 3:21am UTC](https://boards.straightdope.com/t/why-do-some-us-colleges-not-offer-perkins-loans/567896/2 "2011-01-17T03:21:16Z")
They offer IHOP loans instead. Some more info, por favor. ---
**Author:** ![Shmendrik](https://avatars.discourse-cdn.com/v4/letter/s/ee7513/32.png) [@Shmendrik](https://boards.straightdope.com/u/Shmendrik)\ **Post date:** [January 17, 2011, 3:29am UTC](https://boards.straightdope.com/t/why-do-some-us-colleges-not-offer-perkins-loans/567896/3 "2011-01-17T03:29:40Z")
> [@Lamar\_Mundane](#): > > They offer IHOP loans instead. > Some more info, por favor. Perkins loans are need-based subsidized federal student loans with an an interest rate of 5%, compared to Stafford loans which have 6.8% interest. When I was in college relatively recently I borrowed about $15,000 in Perkins loans. Now a relative of mine is applying to a different college who told him that they don’t offer Perkins loans, only Stafford. Given that it’s a federally subsidized program which shouldn’t cost the college anything, why would they be unavailable? ---
**Author:** ![Kent\_Clark](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kent_clark/32/105_2.png) [@Kent\_Clark](https://boards.straightdope.com/u/Kent_Clark)\ **Post date:** [January 17, 2011, 3:49am UTC](https://boards.straightdope.com/t/why-do-some-us-colleges-not-offer-perkins-loans/567896/4 "2011-01-17T03:49:44Z")
Stafford loans are backed by the federal government. Therefore, they can’t be defaulted on. Perkins loans are federally subsidized, but not federally backed. They can be defaulted on. That’s my guess, anyway. ---
**Author:** ![Shmendrik](https://avatars.discourse-cdn.com/v4/letter/s/ee7513/32.png) [@Shmendrik](https://boards.straightdope.com/u/Shmendrik)\ **Post date:** [January 17, 2011, 3:53am UTC](https://boards.straightdope.com/t/why-do-some-us-colleges-not-offer-perkins-loans/567896/5 "2011-01-17T03:53:10Z")
> [@kunilou](#): > > Perkins loans are federally subsidized, but not federally backed. They can be defaulted on. > > That’s my guess, anyway. I don’t think so. Besides, the college isn’t the lender, so why would they care? ---
**Author:** ![Nametag](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/nametag/32/406_2.png) [@Nametag](https://boards.straightdope.com/u/Nametag)\ **Post date:** [January 17, 2011, 6:07am UTC](https://boards.straightdope.com/t/why-do-some-us-colleges-not-offer-perkins-loans/567896/6 "2011-01-17T06:07:28Z")
No, for a Perkins loan, the school IS the lender; although the money comes from the USDOEd, the school has to write the checks and administer the account. Stafford loans are direct loans from USDOEd to student, and don’t require much work from the school. ---
**Author:** ![Shmendrik](https://avatars.discourse-cdn.com/v4/letter/s/ee7513/32.png) [@Shmendrik](https://boards.straightdope.com/u/Shmendrik)\ **Post date:** [January 17, 2011, 5:27pm UTC](https://boards.straightdope.com/t/why-do-some-us-colleges-not-offer-perkins-loans/567896/7 "2011-01-17T17:27:45Z")
> [@Nametag](#): > > No, for a Perkins loan, the school IS the lender; although the money comes from the USDOEd, the school has to write the checks and administer the account. Stafford loans are direct loans from USDOEd to student, and don’t require much work from the school. Interesting. Thanks.