DO YOU QUALIFY FOR CANCELLATION?
This loan program provides you with an opportunity to cancel all or
part of your loan for certain types of employment or service.
FOR ADDITIONAL ELIGIBILITY REQUIREMENTS, click on the highlighted phrase in the chart below.
To obtain the necessary form, click on Benefit Forms in the left-side menu.
| Cancellation Criteria |
Federal Perkins National Direct Made on or after 07/23/92 |
Federal Perkins Made Prior to 07/23/92 |
National Direct Made Prior to 07/23/92 |
National Defense |
| 1. Total and permanent disability or death of borrower |
100%
|
100%
|
100%
|
100%
|
| 2. Full-time employment in a Head Start Program |
100%
(15% per year)
|
100%
(15% per year)
|
100%
(15% per year)
|
N/A
|
| 3. Full-time law enforcement or correction officer |
100%
(over 5 years)
|
100%
(over 5 years)
|
100%
(over 5 years)
|
N/A
|
| 4. Full-time teacher in a low income school eligible for funding under Chapter 1 of the Education Consolidation and Improvement Act of 1981 |
100%
(over 5 years)
|
100%
(over 5 years)
|
100%
(over 5 years)
|
100%
(15% per year)
|
| 5. Full-time special education teacher, including teacher of infants, toddlers, children or youth with disabilities. |
100%
(over 5 years)
|
100%*
(over 5 years)
|
100%*
(over 5 years)
|
100%*
(over 5 years)
|
| 6. Provider of early intervention service in a public or non-profit program under public supervision. |
100%
(over 5 years)
|
100%*
(over 5 years)
|
100%*
(over 5 years)
|
100%*
(over 5 years)
|
| 7. Full-time teacher of handicapped students in a public or non-profit elementary or secondary school |
N/A
|
100%
(over 5 years)
|
100%
(over 5 years)
|
100%
(over 5 years)
|
| 8. Full-time teacher of mathematics, science, foreign languages, bilingual education, or any field of expertise determined by the state education agency to have a shortage of qualified teachers. |
100%
(over 5 years)
|
100%*
(over 5 years)
|
100%*
(over 5 years)
|
100%*
(over 5 years)
|
| 9. Provider or supervisor of the provision of services to high-risk children from low-income communities and their families. |
100%
(over 5 years)
|
100%*
(over 5 years)
|
100%*
(over 5 years)
|
100%*
(over 5 years)
|
| 10. Nurse or medical technician providing health care services |
100%
(over 5 years)
|
100%*
(over 5 years)
|
100%*
(over 5 years)
|
100%*
(over 5 years)
|
| 11. Peace Corps or ACTION programs volunteer |
70%
(over 4 years)
|
70%
(over 4 years)
|
70%
(over 4 years)
|
70%
(over 4 years)
|
| 12. Military Service in U.S. Armed Forces serving under hazardous duty pay. |
50%
(12.5% per year of qualifying service)
|
50%
(12.5% per year of qualifying service)
|
50%
(12.5% per year of qualifying service)
|
50%
(12.5% per year of consecutive service)
|
| 13. Full-time teaching in a public or non-profit elementary or secondary school, an institution of higher education, or an overseas Department of Defense elementary or secondary school |
N/A
|
N/A
|
N/A
|
50%
(10% per year)
|
| 14. Bankruptcy |
In some cases |
In some cases |
In some cases |
In some cases |
| 15.
Spouse of Victim of 9/11/2001 |
For loans made before 9/11/2001, 100% of balance outstanding when cancellation is requested. |
*Benefit eligibility is effective 10/1/98.
IF YOU EXPECT TO BE ELIGIBLE for any cancellation listed above, you
should apply for deferment of your payments during your year of qualifying
service/employment. Deferment delays billing until the end of the year, when your payments
will be cancelled. To apply, complete a Request for Deferment Prior to Cancellation
form (click on Cancellation on the benefit forms page) and return it to this office for
processing.
TO RECEIVE CANCELLATION BENEFITS, you must file a Request for Cancellation form
at the end of your eligible year. If you defer payments for service/employment, this
form will be sent to you automatically.
TO DOWNLOAD AND PRINT BENEFIT FORMS,
click here.
