Perkins Loan Cancellation/Deferment
You may have all or part of your Perkins Loan canceled for full-time employment in certain types of service, as long as your loan is not in default. You must contact the Perkins Loan Office at the beginning of your service for the proper forms and specific criteria you must meet to request cancellation.
| Cancellation Conditions |
Amount Forgiven |
|
Borrower’s total and permanent disability or death
|
100%
|
|
Full-time teacher in a designated elementary or secondary school serving students from low-income families
|
Up to 100%
|
|
Full-time special education teacher (includes teaching children with disabilities in a public or other nonprofit elementary or secondary school)
|
Up to 100%
|
|
Full-time qualified professional provider of early intervention services for the disabled
|
Up to 100%
|
|
Full-time teacher of math, science, foreign languages, bilingual education, or in other fields designated as teacher shortage areas
|
Up to 100%
|
|
Full-time employee of a public or non-profit child- or family-services agency providing services to high-risk children and their families from low-income communities
|
Up to 100%
|
|
Full-time nurse or medical technician (OT or PT)
|
Up to 100%
|
|
Full-time law enforcement or corrections officer
|
Up to 100%
|
|
Full-time employment in a Head Start Program
|
Up to 100%
|
|
Peace Corps or Vista volunteer
|
Up to 70%
|
|
Military service in U.S. Armed Forces
|
Up to 50% in areas of hostilities or imminent danger |
* As of October 7, 1998, all Perkins Loan borrowers are eligible for all cancellation benefits regardless of when the loan was made or the terms of the borrower’s promissory note. However, this benefit is not retroactive to services performed before October 7, 1998.
Loan Cancellation for Teachers
Additional information on teaching service cancellation and deferment options can be found on the Federal Student Aid Web site.
U.S. Army Loan Repayment Program
Although it is not a cancellation, the U.S. Army offers a loan repayment program as an enlistment incentive. If the borrower of a Federal Perkins Loan serves as an enlisted person in the U.S. Army, Army Reserves, or Army National Guard, the Department of Defense will repay a portion of the loan. For more information, contact your local military recruiting office.
Under certain conditions you can receive a “deferment” on your loan. During a deferment, you’re allowed to temporarily postpone payments on your loan without being charged interest. You must apply for a deferment by filing properly certified forms requesting deferment. You can download forms from the ECSI Web site.
The deferments listed below apply to all Perkins Loan borrowers who received their loan on or after July 1, 1993. Other deferments may also be available if you have an outstanding balance on a loan made before July 1, 1993.
Deferment Conditions:
- Half-time enrollment at a postsecondary school
- Study in an approved graduate fellowship program
- Study in an approved rehabilitation training program for the disabled
- Unable to find full-time employment
- Economic hardship
-
Engage in the following services:
- Teaching in low-income schools
- Head Start staff member
- Special Education teacher
- Teaching math, science, foreign language, bilingual education or other fields designated as teacher shortage areas
- Early Intervention
- Child or family service agency
- Nurse or medical technician
- Law enforcement or corrections officer
- Peace Corps volunteer
- U.S. Armed Forces
Forbearance
If you can’t meet your repayment schedule but aren’t eligible for a deferment, you can receive a forbearance for a limited and specific period. During forbearance, your payments are postponed or reduced, but interest continues to accrue and you are responsible for paying it. You will need to provide documentation to show why you should be granted forbearance. | 
