**(a) Program authority** The Secretary shall carry out a program assisting in the maintenance of funds at institutions of higher education for the making of loans to undergraduate students in need to pursue their courses of study in such institutions or while engaged in programs of study abroad approved for credit by such institutions. Loans made under this part shall be known as “Federal Perkins Loans”.
**(b) Authority to make loans**
(1) **In general**
(A) *Loans for new undergraduate Federal Perkins Loan borrowers* — Through September 30, 2017, an institution of higher education may make a loan under this part to an eligible undergraduate student who, on the date of disbursement of a loan made under this part, has no outstanding balance of principal or interest on a loan made under this part from the student loan fund established under this part by the institution, but only if the institution has awarded all Federal Direct Loans, as referenced under subparagraphs (A) and (D) of [section 1087e(a)(2) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1087e/a/2&num=0&edition=prelim), for which such undergraduate student is eligible.
(B) *Loans for current undergraduate Federal Perkins Loan borrowers* — Through September 30, 2017, an institution of higher education may make a loan under this part to an eligible undergraduate student who, on the date of disbursement of a loan made under this part, has an outstanding balance of principal or interest on a loan made under this part from the student loan fund established under this part by the institution, but only if the institution has awarded all Federal Direct Stafford Loans as referenced under [section 1087e(a)(2)(A) of this title](https://uscode.house.gov/view.xhtml?req=g
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Source location: Title 20, Chapter 28, § 1087aa; chapter-028-higher-education-resources-and-student-assistance.md
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**(a) Program authority** The Secretary shall carry out a program assisting in the maintenance of funds at institutions of higher education for the making of loans to undergraduate students in need to pursue their courses of study in such institutions or while engaged in programs of study abroad approved for credit by such institutions. Loans made under this part shall be known as “Federal Perkins Loans”.
**(b) Authority to make loans**
(1) **In general**
(A) *Loans for new undergraduate Federal Perkins Loan borrowers* — Through September 30, 2017, an institution of higher education may make a loan under this part to an eligible undergraduate student who, on the date of disbursement of a loan made under this part, has no outstanding balance of principal or interest on a loan made under this part from the student loan fund established under this part by the institution, but only if the institution has awarded all Federal Direct Loans, as referenced under subparagraphs (A) and (D) of [section 1087e(a)(2) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1087e/a/2&num=0&edition=prelim), for which such undergraduate student is eligible.
(B) *Loans for current undergraduate Federal Perkins Loan borrowers* — Through September 30, 2017, an institution of higher education may make a loan under this part to an eligible undergraduate student who, on the date of disbursement of a loan made under this part, has an outstanding balance of principal or interest on a loan made under this part from the student loan fund established under this part by the institution, but only if the institution has awarded all Federal Direct Stafford Loans as referenced under [section 1087e(a)(2)(A) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1087e/a/2/A&num=0&edition=prelim) for which such undergraduate student is eligible.
(C) *Loans for certain graduate borrowers* — Through September 30, 2016, with respect to an eligible graduate student who has received a loan made under this part prior to October 1, 2015, an institution of higher education that has most recently made such a loan to the student for an academic program at such institution may continue making loans under this part from the student loan fund established under this part by the institution to enable the student to continue or complete such academic program.
(2) **No additional loans** — An institution of higher education shall not make loans under this part after September 30, 2017.
(3) **Prohibition on additional appropriations** — No funds are authorized to be appropriated under this chapter or any other Act to carry out the functions described in paragraph (1) for any fiscal year following fiscal year 2015.
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Federal law — U.S. Code and appendices · legal_authorities
§ 1087aa. Appropriations authorized
(a) Program authority
The Secretary shall carry out a program as-
sisting in the maintenance of funds at institu-
tions of higher education for the making of
loans to undergraduate students in need to pur-
sue their courses of study in such institutions or
while engaged in programs of study abroad ap-
proved for credit by such institutions. Loans
made under this part shall be known as ‘‘Federal
Perkins Loans’’.
(b) Authority to make loans
(1) In general
(A) Loans for new undergraduate Federal
Perkins Loan borrowers
Through September 30, 2017, an institution
of higher education may make a loan under
this part to an eligible undergraduate stu-
dent who, on the date of disbursement of a
loan made under this part, has no out-
standing balance of principal or interest on
a loan made under this part from the stu-
dent loan fund established under this part by
the institution, but only if the institution
has awarded all Federal Direct Loans, as ref-
erenced under subparagraphs (A) and (D) of
section 1087e(a)(2) of this title, for which
such undergraduate student is eligible.
(B) Loans for current undergraduate Federal
Perkins Loan borrowers
Through September 30, 2017, an institution
of higher education may make a loan under
this part to an eligible undergraduate stu-
dent who, on the date of disbursement of a
loan made under this part, has an out-
standing balance of principal or interest on
a loan made under this part from the stu-
dent loan fund established under this part by
the institution, but only if the institution
has awarded all Federal Direct Stafford
Loans
as
referenced
under
section
1087e(a)(2)(A) of this title for which such un-
dergraduate student is eligible.
(C) Loans for certain graduate bo