Deferment/Cancellation Table for Perkins Loans


As of December 1998, these are the conditions for Deferments and Cancellations for Perkins loans.


DEFERMENT CONDITIONS FOR PERKINS LOANS     Definitions

Deferment Types

PERKINS
7/01/93 - current

PERKINS
10/01/92-6/30/93

PERKINS
7/23/92 - 6/30/93

PERKINS
12/1/90 – 7/22/92

PERKINS
7/1/87 - 11/30/90

Half-time or greater student

no limit

no limit

no limit

no limit

no limit

Forbearance

3 years

3 years

3 years

3 years

3 years

Economic Hardship1

3 years

3 years

3 years

3 years

3 years

Unemployment

3 years

 3 years

 3 years

3 years

3 years

Rehabilitation training

No Limit

No limit

No Limit

No limit

No Limit

Internship or Residency2

Dentistry Only - 2yr

2 year8

2 year9

Dentistry Only - 2yr

Dentistry Only - 2yr

Fellowship3

No Limit

No limit

No Limit

No limit

No Limit

Hardship

N/A

No Limit

No Limit

No Limit

No Limit

Military4

N/A

3 years

3 years

3 years

3 years

Peace Corp

N/A

3 years

3 years

3 years

3 years

Vista

N/A

3 years

3 years

3 years

3 years

Disability - debtor5

N/A

3 years

3 years

3 years

3 years

Public Health Services

N/A

3 years

3 years

3 years

3 years

Volunteer Tax-Exempt Org.

N/A

3 years

3 years

3 years

3 years

Disability - spouse

N/A

3 years

3 years

3 years

3 years

Mother re-entering workforce6

N/A

1 year

1 year

1 year10

1 year10

NOAAC

N/A

1 year

1 year

1 year10

1 year10

Parental Leave7

N/A

6 months

6 months

6 months10

6 months10

NOTES FOR DEFERMENT CONDITIONS:

1

A borrower is considered to have an economic hardship if the borrower:

 

a.

Is working full-time but earning an amount that does not exceed (the greater of):

 

 

1.

The federal minimum wage, or

 

 

2.

An amount equal to 100% of the poverty line for a family of two as determined according to section 673(2) of the Community Service Block Grant Act, or

 

b.

Meets other regulatory criteria that takes into account the borrower's debt-to-income ratio as a primary factor.

 

 

 

 

2

Borrowers with loans disbursed on or after 7/1/93 may receive a deferment only for a residency program in dentistry.

 

 

 

 

3

A deferment request from a borrower enrolled in a graduate or postgraduate fellowship-supported program outside of the U.S. is approved until the completion of the fellowship period.

 

 

 

 

4

Only for loans made before 7/1/93, military service must be in an area that qualifies for hazardous-duty pay.

 

 

 

 

5

Applies to borrower or care of spouse only. Does not allow deferment for the care of temporarily totally disabled dependent.

 

 

 

 

6

Borrower's salary must not be more than $1 over the minimum hourly wage rate.

 

 

 

 

7

Borrower must not be attending an eligible post-secondary institution or be gainfully employed. Deferment must begin within six months after the borrower ceased to be enrolled at least half-time at an eligible institution.

 

 

 

 

8

The internship program must require that the borrower have a bachelor's degree before being admitted. In addition, the program must be required by a state licensing agency for certification for professional practice or service, or the program must lead to a post-graduate degree or certificate from a post-secondary school, hospital or health-care facility.

 

 

 

 

9

The internship program must require that the borrower have a bachelor's degree before being admitted. In addition, the program must be required by a state licensing agency for certification for professional practice or service.

 

 

 

 

10

Perkins 16 & 18 not eligible for these three deferment types.


CANCELLATION CONDITIONS FOR PERKINS LOANS     Definitions

Cancellation Types

PERKINS
7/01/93 - current

PERKINS
10/01/92- 6/30/93

PERKINS

7/23/92 - 6/30/93

PERKINS
12/1/90 - 7/22/92

PERKINS
7/1/87 - 11/30/90

Disability or Death of Borrower1

100%

100%

100%

100%

100%

Head Start2

100%

100%

100%

100%

100%

Law Enforcement3

100%

100%

100%

100%

100%

Full-time Teaching4

100%

100%

100%

100%

100%

Full-time Special Ed. Teaching5

100%

100%

100%

100%

100%

Military6

50%

50%

50%

50%

50%

Peace Corp7

70%

70%

70%

70%

70%

Nursing or Medical Technician8

100%

100%

100%

100%

100%

Service Agency9

100%

100%

100%

100%

100%

Full-time Teaching - Handicapped10

100%

100%

100%

100%

100%

Full-time Teaching - Multi-reason11

100%

100%

100%

100%

100%

Bankruptcy12

Some cases

Some cases

Some cases

Some cases

Some cases

NOTES FOR CANCELLATION CONDITIONS:

1

Total and permanent disability is defined as the borrower's inability to work and earn money or to attend school because of an impairment that is expected to continue indefinitely or to result in the borrower's death.

 

 

2

Cancellation rate is 15% per year.

 

 

3

The cancellation rate for a law enforcement or correction officer is : 15%-1st  & 2nd, 20% - 3rd & 4th, 30%- 5th year.

 

 

4

Full-time teaching in low income schools eligible for funding under Chapter 1 of the Education Consolidation and Improvement Act of 1981. If borrower teaches at a school that does not qualify as a low-income school in a subsequent year, the borrower remains eligible for loan cancellation as long as the borrower continues to teach full-time. The cancellation rate is : 15% - 1st  & 2nd, 20% - 3rd & 4th, 30%- 5th year.

 

 

5

Full-time special education teaching includes teaching infants, toddlers, children or youth with disabilities. These disabilities are defined in Section 602(a)(1) and 672(1) of the Individuals with Disabilities Education Act.

 

 

6

Military service must be in an area of hostility or imminent danger qualifying for hazardous-duty pay. Cancellation rate is 12.5% per year of qualifying service.

 

 

7

Applies to both Peace Corp or ACTION programs volunteer. The cancellation rate is : 15% - 1st  & 2nd, 20% - 3rd & 4th.

 

 

8

The cancellation rate is : 15% - 1st  & 2nd, 20% - 3rd & 4th, 30%- 5th year.

 

 

9

A qualified professional provider of early intervention services is defined in Section 672(2) of the Individuals with Disabilities Education Act.
Service agencies are defined as: public or nonprofit child or family services agency.
High-risk children are defined as individuals under the age of 21 who: are low-income; have been abused or neglected; have serious emotional, mental or behavioral disturbances; reside in placements outside of their homes; or are involved in the juvenile justice system. Low-income communities are defined as those communities in which there is a high concentration of children eligible to be counted under Chapter 1 of the Elementary and Secondary Education Act of 1965
The cancellation rate is : 15% - 1st  & 2nd, 20% - 3rd & 4th, 30%- 5th year.

 

 

10

Full-time teaching of handicapped students must be in a public or non-profit elementary/secondary school. The cancellation rate is : 15% - 1st  & 2nd, 20% - 3rd & 4th, 30% - 5th year

 

 

11

Multi-reason is defined as: Full-time teaching 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. The cancellation rate is : 15% - 1st  & 2nd, 20% - 3rd & 4th, 30%- 5th year.

 

 

12

Bankruptcies are no longer dischargeable after October 1, 1998, unless undo hardship is provided to the courts. Prior to this, a borrower must have been in repayment for 7 years to be eligible for discharge. Loans are canceled only if collection is stayed by a bankruptcy court. If the loan is not ultimately discharged in bankruptcy, it again becomes the borrower's obligation.

 

 


Deferment/Cancellation Table for University & Health Profession Loans


DEFERMENT CONDITIONS FOR UNIVERSITY AND HEALTH PROFESSION LOANS

Deferment Types

University

Health Profession

Student Half-time or greater 1

48 To 60 Months

No Limit

Hardship 2

No Limit

No Limit

Internship/Residency 3

N/A

No limit

Military/ Peace Corp /Vista 4

N/A

3 years

 

 

 

Cancellation Types

 

 

 

Death of Borrower

100%

100%

NOTES FOR DEFERMENT CONDITIONS:

1

University Loans you must be full time for student deferment, Health Professions loans you must be half time or greater.

 

 

2

Monthly interest is required to be paid.

 

 

3

Pursues advanced professional training, including internships and residencies.

 

 

4

Serves on active duty as a member of a uniformed service of the United States, for up to 3 years, serves as a volunteer under the Peace Corps Act for up to 3 years.

 

 

Please refer to your promissory note(s) for all deferment entitlements.


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