Current Competitions Note: Formula grants are made directly to eligible postsecondary institutions

Type of Assistance (specifically)
Perkins Loan allocations are made to eligible institutions for the purpose of providing low-interest loans to needy undergraduate and graduate students attending eligible institutions. Institutional allocations for new Federal Capital Contributions (FCC) are made to institutional revolving funds based on institutional requests for program funding under a statutory formula. Under the funding formula, funds are distributed to institutions, first, on the basis of the institution's base guarantee plus the pro rata share received during the 1999–2000 award year under the Perkins Loan Program and, then, on the basis of the aggregate need of the eligible students in attendance. Institutions must contribute 25 percent of the funding. In addition, institutions receive payments to compensate them for the cost of certain statutory loan cancellation provisions. Students receive Perkins loans from participating institutions after filing theF ree Application for Federal Student Aid (FAFSA) to determine their financial need.