Federal Perkins Loan Program Cancellation Provisions
Perkins loans may be partially or completely canceled if the borrower meets one of the following conditions. Note that some of these cancellation provisions were added to Perkins Loans made after 1990 and 1992, and some of them offer partial rather than full cancellation. You should consult your Perkins Loan promissory note to see if you meet all of the requirements for cancellation. If you have further questions, please contact Student Financial Services at (213)740-4077. To apply for cancellation of a Perkins loan, you must submit a Request for Cancellation to Student Financial Services.
- Full-time teachers or service providers meeting one of the following conditions may be eligible to have up to 100% of their loans canceled:
- Teachers in public or nonprofit elementary or secondary schools serving low-income families. Qualifying schools are approved by the US Department of Education.
- Teachers of handicapped students in a public or nonprofit elementary secondary school. The majority of the students must be handicapped.
- Special education teachers, including teachers of infants, toddlers, children, or youth with disabilities in a public or nonprofit elementary or secondary school system.
- Teachers of mathematics, science, foreign languages, bilingual education, or any other field of expertise that is determined to have a shortage of qualified teachers.
- Full-time qualified professional providers of early intervention services in a public or other nonprofit program under public supervision.
- Full-time employees of a public or private nonprofit child or family service agency who provide or supervise the provision of services to high risk children from low-income communities, and the families of such children.
- Full-time nurses or medical technicians providing health care services.
- Full-time law enforcement officers or corrections officers for a local, state, or federal law enforcement or corrections agency.
If a borrower is eligible for cancellation under one of the above categories, up to 100% of the loan may be canceled in the following increments:
- 15% canceled per year for the first and second years of service,
- 20% canceled for the third and fourth years, and
- 30% canceled for the fifth year.
- Death of the borrower. Upon receipt of a death certificate, 100% of the outstanding balance of the loan may be canceled
- Permanent and total disability of the borrower. 100% of the outstanding balance of the loan may be canceled upon receipt of appropriate documentation. Conditions that existed at the time the student received the loan are generally excluded.
- Full-time staff members in a Headstart program whose primary duties are to carry out the instruction portion of the Headstart Program may have 15% of their loan canceled each year.
- Volunteers in the Peace Corps or volunteers under the Domestic Volunteer Service Act in an ACTION program may have up to 70% of their loans canceled in increments of 15% for the first and second years, and 20% for the third and fourth years.
- Military personnel serving active duty in the U.S. Armed Forces in an area of hostilities or an area of imminent danger may have up to 50% of their loans canceled at a rate of 12.5% per year.
More information on Perkins teacher cancellations, including lists of qualified low-income schools are available at the US Government's Teacher Services website, at http://studentaid.ed.gov/PORTALSWebApp/students/english/cancelperk.jsp?tab=repaying.