Site Map    |    
Borrower-Student
 

Cancellation Eligibility

 
 
 

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 right-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) for service through 8/14/2008. Service beginning on or after 8/14/2008, cancellation is 100% over 5 years.
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
15. Spouse of Victim of 9/11/2001 For loans made before 9/11/2001, 100% of balance outstanding when cancellation is requested.
16. Public Defender 100%** (over 5 years) 100%** (over 5 years) 100%** (over 5 years) 100%** (over 5 years)
17. Teacher of pre-kindergarten or child care program 100%** (15% per year) 100%** (15% per year) 100%** (15% per year) 100%** (15% per year)
18. Librarian in or serving a designated low-income school 100%** (over 5 years) 100%** (over 5 years) 100%** (over 5 years) 100%** (over 5 years)
19. Speech Language Pathologist in a designated low-income school 100%** (over 5 years) 100%** (over 5 years) 100%** (over 5 years) 100%** (over 5 years)
20. Firefighter 100%** (over 5 years) 100%** (over 5 years) 100%** (over 5 years) 100%** (over 5 years)
21. Faculty at a Tribal college or university 100%** (over 5 years) 100%** (over 5 years) 100%** (over 5 years) 100%** (over 5 years)

*Benefit eligibility is effective 10/1/98.

**Benefit eligibility begins 8/14/2008.

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.

Eligibility and Definitions

Death. Cancellation for the death of the borrower requires a certified copy of the Death Certificate. Contact the lending school with any questions.

Total Permanent Disability (Inability to engage in substantial gainful employment due to a medically determinable physical or mental impairment that has lasted or is expected to last for at least 60 months or to result in death).  The cancellation is not available if the medical condition leading to the permanent disability existed before you accepted the loan. Except for VA Disability, the condition must be verified by a physician's affidavit that states the medical condition and specifies the condition to be total and permanent disability. If your lending school determines that your condition may qualify you for cancellation, it will refer your loan to the Federal government for review. The Federal government may request additional information including verification of income earned. The Federal government will determine your eligibility for final cancellation. Veterans with service-related disabilities must submit documentation of the VA determination of unemployability due to a service-connected disability. No other documentation is required.

Survivors or Victims of 9/11/2001. If your spouse is/was an eligible public servant killed or totally and permanently disabled as a result of the terrorist attacks on September 11, 2001, you may be eligible to have your outstanding Perkins loan cancelled. An "eligible public servant" served as a police officer, firefighter, other safety/rescue personnel or member of the Armed Forces. Contact our office for more information and details regarding the documentation that must be submitted.

Head Start/Pre-kindergarten/Child Care. 100% loan cancellation (15% per academic year) on NDSL/Perkins loans for employment as a full-time staff member in a preschool program carried out by the Head Start Act or a pre-kindergarten or child care program that is licensed or regulated by the State, if:

  • The program operates for a complete academic year, or its equivalent; and
  • The borrower's salary does not exceed the salary of a comparable employee working in the local educational agency of the area served by the Head Start program.

Law Enforcement or Corrections Officer. 100% cancellation over five years (15/15/20/20/30%) on NDSL/Perkins loans. A borrower qualifies if s/he is a sworn law enforcement officer or a person whose principal responsibilities are unique to the criminal justice system. A borrower whose duties are supportive or administrative does not qualify. In addition, the borrower must be employed by an eligible employing agency: A local, State, or Federal law enforcement or corrections agency or facility that is publicly funded and has as its principal activities crime prevention, control or reduction, or the enforcement of criminal law.

Teacher in a Low-Income School. 100% cancellation over five years (15/15/20/20/30%) on NDSL/Perkins loans. Borrower must be teaching in a school designated by the Education Department as having a high concentration of students from low-income families. Not all schools serving low-income populations will qualify.

A teacher is a person who provides:

  • direct classroom teaching;
  • classroom-type teaching in a non-classroom setting; or
  • educational services to student directly related to classroom teaching such as school librarians or guidance counselors.

A supervisor, administrator, researcher or curriculum specialist is not a teacher unless s/he primarily provides direct and personal education services to students.

Certain professionals, licensed by the State, can also qualify if the services are part of the educational curriculum for handicapped children. Such professionals include speech pathologists, audiologist, psychologists and counselors, physical or occupational therapists, and recreational therapists.

Special Education Teachers. 100% cancellation over 5 years (15/15/20/20/30%) on NDSL/Perkins loans. Borrowers must be teaching infants, toddlers, children, or youths with disabilities, in a public or other non-profit elementary or secondary school system. Students may be aged birth to 21 years and require special education because of disability as defined in 602(3) of the Individuals with Disabilities Act.

Shortage Area Teacher. 100% cancellation over 5 years (15/15/20/20/30%) on NDSL/Perkins loans. Borrowers must teach full time in mathematics, science, bilingual education, foreign language, or any other field where the State education agency determines there is a shortage of qualified teachers.

Early Intervention Services. 100% cancellation over 5 years (15/15/20/20/30%) on NDSL/Perkins loans. Borrowers must be providers of early intervention services in a public or other non-profit program under public supervision. "Early intervention services" are developmental services designed to meet a handicapped infant' s or toddler's (individual under 3 years of age) needs in physical, cognitive, language, speech, psycho-social development or self-help skills.

Provider of Services to High-risk Children. 100% cancellation over 5 years (15/15/20/20/30%) on NDSL/Perkins loans. Borrower must be employed full time by a public or private nonprofit child/family service agency and must provide or supervise the provision of services to high-risk children from low-income communities and the families of such children. "High-risk children" are children who are low-income or at risk of abuse/neglect, have been abused/neglected, reside in placements outside their homes, or are involved in the juvenile justice system".

Nurse or Medical Technician. 100% cancellation over 5 years (15/15/20/20/30%) on NDSL/Perkins loans. "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 that is certified, registered, or licensed by the appropriate State agency. "Allied health professional" is someone who assists, facilitates, or complements the work of physicians and other specialists in the health care system.

Peace Corp or ACTION Volunteer. 70% maximum cancellation over four years (15/15/20/20%) on NDSL/Perkins loans. Borrower can receive cancellation for each complete year of service as a volunteer in the specific programs.

Military. Borrower can receive cancellation for each 12-month period of service as a member of the US Army, Navy, Air Force, Marines, or Coast Guard and serving in an area of hostilities that qualifies for special pay under USC 37 Sec. 310. For any year of service beginning on or after August 14, 2008, 100% cancellation over 5 years on NDSL/Perkins loans. For any year of service beginning prior to August 14, 2008, 50% maximum cancellation over four years (12.5% per year) on NDSL/Perkins loans.

Public Defender. 100% cancellation over 5 years (15/15/20/20/30%) for a full time attorney employed in a defender organization established in accordance with USC Title 18, Sec. 3006A(g)(2). Employment first eligible on August 14, 2008.

Librarian. 100% cancellation over 5 years (15/15/20/20/30%) for a full-time librarian with a master's degree in library science who is employed:

  • In an elementary or secondary school designated by the Education Department as having a high concentration of students from low-income families. Not all schools serving low-income populations will qualify.
  • In a public library serving a geographical area that contain one or more schools designated by the Education Department as having a high concentration of students from low-income families. Not all schools serving low-income populations will qualify.

Speech/Language Pathologist. 100% cancellation over 5 years (15/15/20/20/30%) for a full-time speech language pathologist with a master's degree working exclusively with schools designated by the Education Department as having a high concentration of students from low-income families. Not all schools serving low-income populations will qualify.
Firefighter. 100% cancellation over 5 years (15/15/20/20/30%) for full time employment as a firefighter for service to a local, State, or Federal fire department or fire district.

Firefighter. 100% cancellation over 5 years (15/15/20/20/30%) for full time employment as a firefighter for service to a local, State, or Federal fire department or fire district.

Tribal Faculty. 100% cancellation over 5 years (15/15/20/20/30%) for full time employment as a faculty member at a Tribal College or University as defined in Sec. 303 of the Higher Education Opportunity Act of 2008.

 

section links