| Effective October 7, 1998, the following cancellations are available to any borrower under this program, regardless of when the student borrowed or the term of the promissary note. | Federal Perkins Student Loan |
|---|---|
| 100 percent of the balance of your student loan will be canceled in the event of your death | Yes |
| 100 percent of the balance of your loan will be canceled if you become permanently and totally disabled and your attending physician submits the appropriate forms. | Yes |
| A full-time staff member in the educational part of a preschool program carried out under the Head Start Act (The cancellation rate is 15 percent of the original principal loan amount--plus the interest that accrued during the year-- for each complete school year.) | Yes |
| A full-time teacher in a public or nonprofit elementary or secondary school serving students from low-income families | Yes |
| A full-time special-education teacher, including teachers of infants, toddlers, children, or youth with disabilities in a public or other nonprofit elementary or secondary school system | Yes |
| A full-time nurse or medical technician providing health care services | Yes |
| A full-time qualified professional provider of early intervention services in a public or other nonprofit program under public supervision. | Yes |
| A full-time employee of an eligible public or private 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. | Yes |
| A full-time teacher in a public or other nonprofit elementary or secondary school in the fields of mathematics, science, foreign languages, or bilingual education or in any other field determined by a state education agency to have a shortage of qualified teachers. | Yes |
| A member of the Armed Forces for service in an area hostilities or imminent danger as designated by the Congress of the United States | Yes |
| Full time law enforcement or corrections officer or a person whose principal responsibilities are unique to the criminal justice system. | Yes |
| A volunteer under the Peace Corp Act or ACTION or Vista Volunteer | Yes |
| With the exception of Head Start service (see the first cancellation provision above), the cancellation rate per completed academic year of full-time teaching or for each year of otherwise qualifying full-time service is the following. | |
| 15 percent of the original principal loan amount - plus the interest that accrued during the year - for each of the first and second years | |
| 20 percent of the original principal loan amount - plus the interest that accrued during the year - for each of the third and fourth years | |
| 30 percent of the original principal loan amount - plus any interest that accrued during the year - for the fifth year | |
| CRITERIA FOR TEACHER CANCELLATION | |
| Eligibility for teacher cancellation is based on the duties presented in an official position description, not on the position title. To receive a cancellation, the borrower must be teaching full time in a public or other nonprofit elementary or secondary school system and must be directly employed by the school system. There is no provision for canceling Perkins Loans or NDSL's for teaching in postsecondary schools. | |
For borrowers who filed for bankruptcy after October 7, 1998, a Federal student loan is not dischargeable in bankruptcy unless the bankruptcy court has determined that repayment would cause an undue hardship to the debtor. A loan is no longer dischargeable in bankruptcy no matter how long it has been in repayment.
Loans can also be discharged (canceled) if you cannot complete a course of study because the school closed or the loan application was falsely certified.