Student loan is truly demand to day which is also a great help for students who are helpless financially. Plus, our economic situation adds a pressure to withstand financial crisis. In fact, One of the classes of student loans, aside from private, Stafford subsidized and Stafford unsubsidized, is Perkins loans, which are need-based. As student loan defaults and Perkins loan defaults have risen, it’s brought consequences, such as lawsuits from schools against former students. Perkins loans are a subsidized federal loans. Funds are allocated to universities, who loan it to students. They pay it back with interest and the interest payments go to fund the unversities’ endowment.
However, just as with regular student loans, people are having trouble paying them back. From June 30 2010 to June 30 2011, $964 million in Perkins loans were defaulted on, a 20 percent rise in 5 years.
Source: Perkins loan defaults results in some universities suing students
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