Perkins Loan Office

CANCELLATION BENEFITS

A cancellation is the forgiving of a portion or all of the principal and interest of a loan because the borrower has met certain employment requirements or because certain other regulatory conditions have been met.

The BORROWER must request these forms from the Perkins Loan Office or download from the Documents/Forms page on this website.

The following cancellation benefits are currently in effect.

 

15% for the first and second years of service
20% for the third and fourth years of service
30% for the fifth year of service
t Full-time teacher in elementary or secondary school:
  t In a Chapter 1 school that is designated by the Secretary of Education as a school with a high concentration of students for low-income families.
  t Special Education teacher.
  t Teacher of mathematics, science, foreign languages, bi-lingual education or other field of expertise that is determined by the State Department of Education to have a shortage of qualified teachers.
t Full-time qualified professional provider of early intervention services in a public or other non-profit program under public supervision by the lead agency as authorized in the Individuals With Disabilities Education Act. (This employment area also requires the Official Certification Letter for Cancellation Benefits form.)
t Full-time law enforcement or corrections officer. This does include parole and probation officers. (This employment area also requires the Official Certification Letter for Cancellation Benefits form.)
t Full-time nurse or medical technicians providing health care services. (This employment area also requires the Official Certification Letter for Cancellation Benefits form.)
t

Full-time employee of an eligible public or private non-profit child or family service agency who is providing, or supervising the provision of, services to high-risk children who are from low-income communities and the families of such children. (This employment area also requires the Official Certification Letter for Cancellation Benefits form.)

These employment areas take 5-years of full-time employment to cancel the loan in full.

 

The following cancellation areas each have their own cancellation rate. Please review your promissory note to determine the appropriate cancellation rates.

t Full-time staff member in the Education component of a Head Start Program. (This employment area also requires the Official Certification Letter for Cancellation Benefits form.)
t Volunteer under the Peace Corps Act or Domestic Volunteer Service Act or 1973 (ACTION programs).
t

Service in the U.S. Armed Forces in an area of hostilities or imminent danger.

Other
  t

Permanent and Total Disability of the borrower. The appropriate paperwork must be completed and certified by a physician.

t

Death of the borrower. A copy of the death certificate is required.

 

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