Perkins loans carry a low, fixed interest rate of 5%, which doesn't begin to accrue until nine months after the student graduates.

FORBES: Magazine Article

Perkins Loans work off a revolving fund.

FORBES: College Loan Crunch

The Peace Corps pays down 15 percent on all Federal Perkins Loans for each year of service, after the third year, participants are eligible to write off 20 percent of all Perkins loan debt per year, says Jim Wolfston, founder of CollegeNET.

FORBES: New College Grads: What to Do With Your Loans and Everything Else!

Why not just require Perkins borrowers to take the same loans as everybody else?

FORBES: Magazine Article