The Federal Perkins Loan program is one of three postsecondary student financial aid programs that are collectively referred to as the campus-based programs. The program authorizes institutions of higher education (IHEs) to capitalize revolving loan funds for the purpose of making low-interest loa ns to students with exceptional financial need. The program is authorized under Title IV, Part E of the Higher Education Act (HEA). It supersedes Title II—Loans to Students in Institutions of Higher Education—of the National Defense Education Act of 1958 (P.L. 85-864), which was incorporated into the HEA through the Education Amendments of 1972 (P.L. 92-318). Previously, these loans were known as National Defense Student Loans and National Direct Student Loans. In general, Perkins Loans are available to undergraduate and graduate and professional students and must be made reasonably available to all eligible students, with priority given to students with exceptional financial need. Interest on Perkins Loans is fixed at a rate of 5% per year, and no interest accrues prior to a student beginning repayment, nor while repayment is suspended or in deferment. Individuals who have engaged in a variety of public service endeavors (e.g., teachers in low-income schools, law enforcement officers) are eligible to have part or all of their Perkins Loan cancelled. Historically, IHEs capitalized their revolving Perkins Loan funds with a combination of federal capital contributions (FCCs) and matching institutional capital contributions (ICCs). The FCC was allocated according to statutorily prescribed procedures. The HEA authorized appropriations to enable the Secretary of Education (the Secretary) to make new FCCs to institutional revolving loan funds through FY2014, and through FY2015 with an automatic one-year extension under the General Education Provisions Act (GEPA). In addition, a limited grandfathering provision authorized the appropriation of funds through FY2020, and through FY2021 under GEPA, for FCCs to IHEs' Perkins Loan funds for the purpose of making loans to continuing students who were prior Perkins Loan recipients. Although appropriations were last provided for this purpose in FY2004, IHEs continued to make new Perkins Loans to students from their revolving loan funds. In academic year 2013-2014, approximately 1,500 IHEs disbursed $1.2 billion in new Perkins Loans to approximately 539,000 students. Authorization of appropriations for the Secretary to allocate FCCs to participating IHEs and for IHEs to award new Perkins Loans to students expired on October 1, 2015. For approximately two and one-half months thereafter, the operation of the Perkins Loan program was curtailed and loans could only be made to continuing students. Then, on December 18, 2015, Congress enacted the Federal Perkins Loan Program Extension Act of 2015 (the Extension Act; P.L. 114-105 ). It extended the authorization of IHEs to make new Perkins Loans to eligible students through September 30, 2017, but prohibited additional appropriations beyond FY2015 for the purpose of making new Perkins Loans and prohibited an automatic extension of the program under GEPA. In addition, the Extension Act amended several key Perkins Loan program provisions relating to student eligibility to receive new Perkins Loans, institutional disclosures required to be made to students borrowing new Perkins Loans, and the distribution of Perkins Loan fund assets upon the program's conclusion. This report begins by giving a brief summary of the authorization for the Perkins Loan program prior to its expiration on September 30, 2015. It then provides brief descriptions of the amendments made to the Perkins Loan program under the Extension Act. Finally, Table 1 provides a summary of selected Perkins Loan program provisions prior to and after the Extension Act. HEA Section 461(b)(1) previously authorized appropriations for the purpose of enabling the Secretary to make FCCs to IHEs for their revolving Perkins Loan funds through FY2014. However, GEPA Section 422 provides that, generally, in the absence of legislation to extend or repeal a program administered by the Department of Education (ED), the authorization of appropriations, or the duration of a program, is extended for one additional fiscal year beyond its terminal year. The authorized level of appropriations for a program in the additional year shall be the same as that for the terminal year of the program. Congress neither extended nor repealed the Perkins Loan program prior to its expiration on September 30, 2014; thus, the authorization of appropriations for the program was automatically extended for an additional year, through FY2015. ED considered the authorization of appropriations under HEA Section 461(b)(1) to control the duration of the Perkins Loan program and had interpreted this section, along with the automatic one-year extension under GEPA Section 422, to mean that the Perkins Loan program was authorized through September 30, 2015. Congress did not extend the Perkins Loan program's authorization before October 1, 2015. Thus, the program's authorization expired, and ED and IHEs began taking steps to wind down the program. On December 18, 2015, several months after the Perkins Loan program's authorization of appropriations had expired, Congress enacted the Federal Perkins Loan Program Extension Act of 2015 ( P.L. 114-105 ), which extends the program through September 30, 2017. Under the terms of the Extension Act, IHEs are permitted to award new Perkins Loans to eligible students through September 30, 2017, at the latest. The remainder of this report identifies changes made to the Perkins Loan program under the Extension Act. Unless otherwise stated, Perkins Loan provisions not addressed in this report were neither amended nor repealed by the Extension Act and remain in effect. Section 2(a)(1)(A) of the Extension Act amends the purpose for which the Secretary is granted authority to operate the Perkins Loan program. Prior to the Extension Act, HEA Section 461(a) authorized the Secretary to operate the Perkins Loan program for the purpose of "stimulating and assisting in the establishment and maintenance of funds at institutions of higher education for the making of low-interest loans to students in need thereof." Section 2(a)(1)(A) authorizes the Secretary to operate the Perkins Loan program, but it amends the purpose for which the program is operated. Under the Extension Act, the Secretary is no longer authorized to operate the program to stimulate and assist in the establishment and maintenance of institutional Perkins Loan funds. Rather, the Extension Act authorizes the Secretary to "assist[] in the maintenance of funds at institutions of higher education for the making of loans to undergraduate students in need." Thus, the Extension Act makes clear that the Perkins Loan program is no longer intended to assist IHEs in establishing Perkins Loan funds, nor is it intended to assist all types of students (e.g., graduate and professional students). Rather, the Perkins Loan program is intended to assist IHEs in maintaining their Perkins Loan funds to make Perkins Loans to a more limited pool of students. Section 2(a)(1)(B) of the Extension Act extends IHEs' abilities to award new Perkins Loans to eligible students for specified time frames. Prior to the Extension Act, Perkins Loans were available to undergraduate and graduate and professional students. IHEs were required to make them reasonably available to all eligible students, with priority given to students with exceptional financial need. Prior to the lapse in the program's authorization, ED had issued guidance describing the steps participating IHEs were to take if Congress did not extend the program before the end of FY2015. Specifically, IHEs were directed not to extend Federal Perkins Loans to new borrowers after September 30, 2015. However, if prior to October 1, 2015, an IHE had made a first disbursement of a Perkins Loan to a student for the 2015-2016 award year, then the IHE was permitted to make remaining disbursements on that loan after September 30, 2015. Additionally, prior to the Extension Act, HEA Section 461(b)(2) included a grandfathering provision that authorized additional appropriations to enable IHEs to make new Perkins Loans to students who received Perkins Loans for academic years ending prior to October 1, 2015. IHEs were authorized to award new Perkins Loans to these eligible students for up to five additional years (through September 30, 2020) to assist them in continuing or completing their course of study. Pursuant to ED guidance, among other criteria, borrowers were eligible for a new Perkins Loan after September 30, 2015, only if they first had been awarded all Direct Subsidized Loan aid for which they were eligible and still had unmet financial need. The Extension Act neither amends nor repeals the general Perkins Loan student eligibility criteria. Perkins Loans remain available to undergraduate and graduate and professional students and must be made reasonably available to all eligible students, with priority given to students with exceptional financial need. However, Section 2(a)(1)(B) of the Extension Act repeals the authorization for IHEs to make grandfathering loans to eligible students for up to five additional years. In this provision's stead, the Extension Act extends IHEs' abilities to award new Perkins Loans to eligible students. Specifically, IHEs may award new Perkins Loans for certain periods of time to certain groups of students: 1. Through September 30, 2017 : IHEs may award new Perkins Loans to new undergraduate Perkins Loan borrowers who, on the date of disbursement of the new Perkins Loan, have no outstanding balance of principal or interest on a Perkins Loan from the institution. IHEs must first award Direct Subsidized Loans and Direct Unsubsidized Loans to such students before awarding a new Perkins Loan. 2.