Perkins Loan

One of the real advantages of the Perkins Loan is the broad range of opportunities for Perkins Loan cancellation. Cancellation means that the loan is cancelled and you do not have to make any more payments.

Perkins Loan Cancellation – Teachers

You may be eligible to cancel all or a portion of your loan for teaching services if you become an eligible teacher, defined as a teacher involved in:

• direct classroom teaching
• classroom type teaching in a non-classroom setting
• educational services directly related to classroom teaching (school librarians and school guidance counselors are eligible under this category) and you:
• Teach full time in a public or nonprofit elementary or secondary school serving students from low-income families.
• Teach handicapped students in a public or nonprofit elementary or secondary school. The majority of children being taught must handicapped.
• Teach in the fields of mathematics, science, foreign languages, or bilingual education or in any other field of expertise that is determined by a state education agency to have a shortage of qualified teachers in that state.

Perkins Loan Cancellation due to Employment as Head Start Staff

• The school closed while you were enrolled,
• The school closed while you were on an approved leave of absence or you withdrew within 90 days of the school closing, and
• You were unable to transfer credits or hours earned at the closed school.

Perkins Loan Cancellation Based on Employment in Law Enforcement

You may be entitled to cancellation benefits for full-time service as a qualifying law enforcement or corrections officer. To establish eligibility for this benefit, the school must determine both that your employing agency is eligible and that your position is essential to the agency’s primary mission.

An agency is eligible if it is publicly funded and its activities relate to crime prevention, control, or reduction or to the enforcement of the criminal law. Agencies that are primarily responsible for enforcement of regulatory, civil, or administrative laws are ineligible. Your job must be full-time in an eligible agency and you must be a sworn officer or person whose principal responsibilities are unique to the criminal justice system and are essential to the agency’s primary mission. Campus police and military police also qualify for this benefit.

Perkins Loan Cancellation for Military Service

You may cancel a portion of your loan (up to 50%) if you serve in the U.S. Armed Forces in an area of hostilities or in an area of imminent danger that qualifies for special pay.

Perkins Loan Cancellation for Volunteer Service

You may cancel a portion of your loan (up to 70%) for volunteer service under the Peace Corps or Vista Service.

Perkins Loan Cancellation Due to Total Permanent Disability

Your loan will be canceled in full if you become permanently and totally disabled after receiving the loan. Permanent and total disability is the inability to work and earn money or to attend school because of an impairment that is expected to continue indefinitely or to result in death. If a loan is canceled based on permanent and total disability, you can’t be required to repay the loan, even your medical condition improves to the point of no longer being disabled, unless the original claim was proved to be fraudulent.

Perkins Loan Cancellation due to Death

A loan will be canceled in full upon your death. This means that your heirs will be not be required to shoulder the burden of your loan debt.
Perkins Loan Cancellation Based on Employment as a Nurse or Medical Technician
You may be entitled to receive cancellation benefits (up to 100%) if you become employed as a full-time, licensed, certified or registered nurse or medical technician providing health care services.

Perkins Loan Cancellation Based on Employment in Early Intervention Services or High Risk Children/family Services

You may be eligible for cancellation benefits (up to 100%) if you become:

• A full-time qualified professional provider of early intervention services to infants or toddlers in a public or other nonprofit program.
• A full-time employee of an eligible public or nonprofit child or family service agency who is providing or supervising the provision of services to both high-risk children who are from low-income communities and the families of such children. The children must be the primary recipients of the services.

In addition to these opportunities for loan cancellation, employers, states, and private organizations may offer loan cancellation or repayment programs.

You may qualify for a cancellation for service if you become a full-time staff member in the educational part of a preschool program carried out under the Head Start Act.

Perkins Loan Cancellation Due to School Closure

Your loan will be cancelled if you received a portion or the entire loan to attend a school that closed before you could complete your program of study. You must have been unable to complete the program because: