Teacher Cancellation Provision
Full-time teachers completing qualifying service are eligible to
have up to 100 percent of their Perkins Loan canceled. Cancellation
benefits are available to those who teach
- Science, mathematics, foreign language or bilingual education.
- Special education of infants, toddlers, children or youth with
- In a field of expertise that is determined by the state
education agency to have a shortage of qualified teachers in that state.
- In a public or nonprofit elementary or secondary school
serving students from low-income families. 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 in a public or nonprofit elementary or
secondary school. Handicapped students are defined as those who are
mentally retarded, hard of hearing, deaf, speech impaired, visually
handicapped, seriously emotionally disturbed, orthopedically impaired,
other health-impaired children or children who, due to specific learning
disabilities, require special education and related services.
For borrowers whose loans were made before July 23, 1992, the
effective date of eligibility is Oct. 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.
Each full academic year of service – or its equivalent – is a
cancellation period. The equivalent of an academic year is completed
upon the anniversary date of your employment. At the end of each year,
complete a cancellation form, having your supervisor sign and verify
that you have worked in the school full time for the complete academic
year. Based on this information, we will cancel a portion of your loan.
Following this procedure for five years will cancel 100 percent of your