Since moving to Selhurst Park in 2010, the 30-year-old has only made 16 appearances in all competitions, his latest coming in September's League Cup defeat to Newcastle United.
Initially signed as an understudy to Julian Speroni, Price dropped further down the pecking order with January's arrival of Wales number one Wayne Hennessey.
His move to the Broadfield Stadium is his second loan move in as many seasons, and he is relishing the chance to return to competitive football with the League One side.
"I'm delighted to be here," he told the club's official website. "I have played here before in friendlies for Palace and I know quite a few of the lads from various other clubs so that's helped me settle in.
"It's tough at Palace with Jules [Speroni] and Wayne Hennessey, who are two outstanding goalkeepers, there.
"I need to go and get games and this is a fantastic opportunity for me and one I am really looking forward to."
John Gregory's side are unbeaten in their last four matches in League One, leaving them 15th in the table ahead of Saturday's clash with strugglers Scunthorpe United.
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