Written by Martha Neal.
Did you know that the University Cashier’s Office is responsible for the administration of the country’s oldest student loan program? The Federal Perkins Loan was established in 1957 as a campus-based student loan program to serve college students in financial need.
First known as the National Defense Loan, the program was renamed the Carl D. Perkins Loan in honor of the longtime congressman from Kentucky. Perkins served in congress for 35 years and as chair of the education committee for 17 years. He was a school teacher himself, prior to becoming a lawyer and legislator. He was a strong supporter of education and the under-privileged. His wife, Verna, was also a school teacher. She taught in an inner-city school in Washington, DC while her husband was in Congress.
As a campus-based program, institutions are responsible for the entire life cycle of the loan from origination to repayment and collections. Old, hand-written ledger books show that NC State has participated in the program since 1958.
Since its inception, the Perkins Loan program has been funded annually by a two thirds contribution from the federal government and a one third match by the institutions. As a revolving loan fund, institutions could also re-lend any money collected from students in repayment. At its peak, NC State was awarding approximately $2 million dollars per year to needy students and the lifetime fund value reached just over $69 million dollars in the span of 63 years.
In 2017, the federal government opted to discontinue making new Perkins Loans and, since that time, institutions have been collecting on loans in repayment. In 2021, the Department of Education began requiring institutions to assign all defaulted loans back to the federal government. At this time, the government also began reimbursing institutions for the one third share they had invested in the program over the years.
In order to be fiscally responsible and continue a commitment of helping students in financial need, NC State elected to establish a Carl Perkins Endowment Fund to serve low income students in perpetuity. The money received annually as reimbursement from collections is added to the newly endowed scholarship. Earnings of this fund are then awarded to students by the Office of Scholarships and Financial Aid.
The Cashier’s Office is proud to maintain the original intention and spirit of the Perkins Loan, to support NC State’s most needy and deserving students for another 63 years and more.