General Information
- Cancellation of principal and interest is granted for working full time in certain
fields. A percentage of the total loan borrowed can be cancelled for each year of work. Typically the cancellation is 15%
of the total loan for the 1st and 2nd year, 20% of total loan for the 3rd and 4th year and 30% for the 5th year.
- Borrowers may retrieved cancellation forms at ESCI.
Types of cancellations
For complete descriptions and qualifications, please contact the Perkins Loan Office.
Can receive a 100% cancellation over five years:
Nurse/Medical Technician full-time
Law Enforcement/Correction Officer full-time
Firefighter
Public Defender
Librarian
Speech Language Pathologist
Spouse of 9/11 Victim
Qualified Professional Provider of Early Intervention Services full-time
Employee of Child or Family Service Agency full-time
Faculty - Tribal college or university
Teaching:
Full-time Head Start Program
Prekindergarten / Child care Program
Low-income Area
Special Education
Handicapped
Math
Science
Foreign and Bi-Lingual Language
High Risk Children
Shortage area for specific state
Other Cancellation Programs:
Peace Corp/Action Programs-over 4 years 70%
Teaching
Military Service- Area hostilities Hazardous Duty Pay 12.5% per year up to 50%
Bankruptcy
Totally, Permanently Disabled 100%
Death 100%
FOR ADDITIONAL ELIGIBILITY REQUIREMENTS, click on the highlighted phrase:
| 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 through 8/14/08. Service Beginning on
or after 8/14/08, 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 |
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. |
| 16. Public Defender ** |
100%
(over 5 years)
|
100%
(over 5 years)
|
100%
(over 5 years)
|
100%
(over 5 years)
|
| 17. Teacher of prekindergarten 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.
