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.