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Cancellation Benefits

Teacher Cancellation Provision:
The borrower of a Perkins Loan is eligible to have up to 100% of the loan cancelled for qualifying service as a full-time teacher:

  • in a public or nonprofit elementary or secondary school serving students from low-income families.
  • of handicapped students in a public or nonprofit elementary or secondary school.
  • of science, mathematics, foreign language or bilingual education.*
  • of special education of infants, toddlers, children or youth with disabilities.*
  • in a field of expertise that is determined by the state education agency to have a shortage of qualified teachers in that state.*

* For borrowers whose loans were made before July 23, 1992, the effective date of eligibility is October 1, 1998.

Cancellation rate per completed academic year of teaching:

  • 15% of the principal, plus any interest that may have accrued during the year, for each of the first and second years.
  • 20% of the principal, plus any interest that may have accrued during the year, for each of the third and fourth years.
  • 30% of the principal, plus any interest that may have accrued during the year, for the fifth year.

A cancellation period consists of a full academic year or its equivalent. The equivalent of an academic year is completed upon the anniversary date of your employment. As this period will encompass portions of two regular academic years, a postponement form must be submitted for each year.

Head Start Cancellation Provision:
The borrower of a Perkins Loan is eligible to have up to 100% of the loan cancelled for qualifying service as a full-time teacher or staff member in the educational part of a preschool program carried out under the Head Start Act.

Cancellation rate per completed academic year of teaching or completed year of employment:

  • 15% of the principal, plus any interest that may have accrued during the year, for each year.

A cancellation period consists of a full academic year or its equivalent. The equivalent of an academic year is completed upon the anniversary date of your employment. As this period will encompass portions of two regular academic years, a postponement form must be submitted for each year.

Volunteer Service Cancellation Provision:
The borrower of a Perkins Loan is eligible to have up to 70% of the loan cancelled for full-time service as a Peace Corps volunteer or volunteer under the Domestic Volunteer Service Act (ACTION program).

Cancellation rate per completed year of service:

  • 15% of the principal, plus any interest that may have accrued during the year, for each of the first and second 12-month periods of service.
  • 20% of the principal, plus any interest that may have accrued during the year, for each of the third and fourth 12-month periods of service.

A cancellation period consists of a full year of employment. For borrowers whose loans were made before July 1, 1987, the effective date of eligibility is October 1, 1998.

Law Enforcement Cancellation Provision:
The borrower of a Perkins Loan is eligible to have up to 100% of the loan cancelled for full-time service as a qualifying law enforcement or corrections officer. The borrower's position must be essential to the agency's primary mission and the agency must be able to document the employee's functions.

Cancellation rate per completed year of employment:

  • 15% of the principal, plus any interest that may have accrued during the year, for each of the first and second years.
  • 20% of the principal, plus any interest that may have accrued during the year, for each of the third and fourth years.
  • 30% of the principal, plus any interest that may have accrued during the year, for the fifth year.

A cancellation period consists of a full year of employment. For borrowers whose loans were made before November 29, 1990, the effective date of eligibility is October 1, 1998.

Additional Cancellation Provisions:
The borrower of a Perkins Loan is eligible to have up to 100% of the loan cancelled for full-time employment as a:

  • nurse or medical technician providing health care services.
  • qualified professional provider of early intervention services in a public or nonprofit program under public supervision.
  • employee of an eligible public or private nonprofit child or family service agency who is providing or supervising the provision of services to both high-risk children who are from low-income communities and the families of such children.

A cancellation period consists of a full year of employment. For borrowers whose loans were made before July 23, 1992, the effective date of eligibility is October 1, 1998.

Death or Disability Cancellations:
In the event of the borrower's total and permanent disability or death, the unpaid indebtedness remaining on the note shall be cancelled. Please contact the Office of Student Loans for details.

Applying for benefits:
The cancellation process consists of two steps: postponement and cancellation.

During the postponement period, regular principal payments are deferred while the borrower is performing a service that will subsequently qualify him or her for cancellation of all or a portion of the loan. Acceptance requires certification of employment or service by the employer or agency and a detailed job description. To apply for postponement, print and complete this postponement form.

A borrower may then apply for cancellation benefits at the end of a full year of eligible employment or service. Prior postponement is not required to be eligible for cancellation benefits. To apply for cancellation, print and complete this cancellation form.

Determination of eligibility for cancellation benefits is the responsibility of the University.

U.S. Army Repay Program
If the borrower of a Federal Perkins Loan serves as an enlisted person in the U.S. Army, in the Army Reserves, or in the Army National Guard, the U.S. Department of Defense will repay a portion of the loan. For more information, the student should contact his or her local military recruiting office.


Definitions:

  • Low income communities are defined as those in which there is a high concentration of children eligible to be counted under Title I of the Elementary and Secondary Education Act of 1965, as amended.
  • Handicapped students are defined as those who are mentally retarded, hard of hearing, deaf, speech impaired, visually handicapped, seriously emotionally disturbed, orthopedically impaired, or other health impaired children or children with specific learning disabilities who by reason thereof require special education and related services.
  • Law enforcement or corrections officer is defined as a person who is employed by a local, state or federal agency that is publicly funded and whose activities pertain to crime prevention, control, or reduction or to the enforcement of the criminal law. Such activities include, but are not limited to, police efforts to prevent, control, or reduce crime or to apprehend criminals; activities of courts and related agencies having criminal jurisdiction; activities of corrections, probation, or parole authorities; and problems relating to the prevention, control, or reduction of juvenile delinquency or narcotic addiction. Agencies that are primarily responsible for enforcement of civil, regulatory, or administrative laws are ineligible.
  • Nurse is defined as a licensed practical nurse, a registered nurse, or other individual who is licensed by the appropriate state agency to provide nursing services.
  • Medical technician is defined as an allied health professional who is certified, registered, or licensed by the appropriate state agency in the state in which he or she provides health care services. An allied health professional is someone who assists, facilitates, or complements the work of physicians and other specialists in the health care system.
  • Qualified professional provider of early intervention services is defined as a provider of services, as defined in section 672(2) of the Individuals with Disabilities Act.
  • High-risk children are defined as individuals under the age of 21 who are low-income or at risk of abuse or neglect, have been abused or neglected, have serious emotional, mental, or behavioral disturbances, reside in placements outside their homes, or are involved in the juvenile justice system.
  • Low income communities are defined as those in which there is a high concentration of children eligible to be counted under Title I of the Elementary and Secondary Education Act of 1965, as amended.