News
As of December 1998, these are the conditions for Deferments and Cancellations for Perkins loans.
DEFERMENT CONDITIONS FOR PERKINS LOANS Definitions
| Deferment Types |
PER 23/24
7/01/93 - current |
PER 22
10/01/92- 6/30/93 |
PER 20/21
7/23/92 - 6/30/93 |
PER 18/19
12/1/90 - 7/22/92 |
PER 16/17
7/1/87 - 11/30/90 |
PER 15
10/1/81 - 6/30/87 |
PER 14
7/1/81 - 9/30/81 |
PER 13
10/1/80 - 6/30/81 |
PER 11/12
7/1/65 - 9/30/80 |
| Half-time or greater student (SD and WD) |
no limit |
no limit |
no limit |
no limit |
no limit |
no limit |
no limit |
no limit |
no limit |
Forbearance
(FD and ED) |
3 years |
3 years |
3 years |
3 years |
3 years |
3 years |
3 years |
3 years |
3 years |
| Economic Hardship1 (QD) |
3 years |
3 years |
3 years |
3 years |
3 years |
3 years |
3 years |
3 years |
3 years |
Unemploy-
ment (LD) |
3 years |
3 years |
3 years |
3 years |
3 years |
3 years |
3 years |
3 years |
3 years |
| Rehabilitation training (KD) |
No Limit |
No limit |
No Limit |
No limit |
No Limit |
No Limit |
No Limit |
No Limit |
No Limit |
| Internship or Residency2 (ID) |
Dentistry Only - 2yr |
2 year8 |
2 year9 |
Dentistry Only - 2yr |
Dentistry Only - 2yr |
Dentistry Only - 2yr |
Dentistry Only - 2yr |
Dentistry Only - 2yr |
Dentistry Only - 2yr |
| Fellowship3 (AD) |
No Limit |
No limit |
No Limit |
No limit |
No Limit |
No Limit |
No Limit |
No Limit |
No Limit |
| Hardship (HD) |
N/A |
No Limit |
No Limit |
No Limit |
No Limit |
No Limit |
No Limit |
No Limit |
No Limit |
| Military4 (MD) |
N/A |
3 years |
3 years |
3 years |
3 years |
3 years |
3 years |
3 years |
3 years |
| Peace Corp (PD) |
N/A |
3 years |
3 years |
3 years |
3 years |
3 years |
3 years |
3 years |
3 years |
| Vista (VD) |
N/A |
3 years |
3 years |
3 years |
3 years |
3 years |
3 years |
3 years |
3 years |
| Disability - debtor5 (DD) |
N/A |
3 years |
3 years |
3 years |
3 years |
3 years |
3 years |
3 years |
N/A |
| Public Health Services (UD) |
N/A |
3 years |
3 years |
3 years |
3 years |
3 years |
3 years |
3 years |
N/A |
| Volunteer Tax-Exempt Org. (OD) |
N/A |
3 years |
3 years |
3 years |
3 years |
3 years |
3 years |
3 years |
N/A |
| Disability - spouse (DS) |
N/A |
3 years |
3 years |
3 years |
3 years |
N/A |
N/A |
N/A |
N/A |
| Mother re-entering workforce6 (RD) |
N/A |
1 year |
1 year |
1 year10 |
1 year10 |
N/A |
N/A |
N/A |
N/A |
| NOAAC (ND) |
N/A |
1 year |
1 year |
1 year10 |
1 year10 |
N/A |
N/A |
N/A |
N/A |
| Parental Leave7 (LD) |
N/A |
6 months |
6 months |
6 months10 |
6 months10 |
N/A |
N/A |
N/A |
N/A |
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 |
For loans made on or after 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 |
PER 23/24
7/01/93 - current |
PER 22
10/01/92- 6/30/93 |
PER 20/21
7/23/92 - 6/30/93 |
PER 18/19
12/1/90 - 7/22/92 |
PER 16/17
7/1/87 - 11/30/90 |
PER 15
10/1/81 - 6/30/87 |
PER 14
7/1/81 - 9/30/81 |
PER 13
10/1/80 - 6/30/81 |
PER 11/12
7/1/65 - 9/30/80 |
| Disability or Death of Borrower1 |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
| Head Start2 |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
| Law Enforcement3 |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
| Full-time Teaching4 |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
| Full-time Special Ed. Teaching5 |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
| Military6 |
50% |
50% |
50% |
50% |
50% |
50% |
50% |
50% |
50% |
| Peace Corp7 |
70% |
70% |
70% |
70% |
70% |
70% |
70% |
70% |
70% |
| Nursing or Medical Technician8 |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
| Service Agency9 |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
Full-time Teaching - Handi-
capped10 |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
| Full-time Teaching - Multi-reason11 |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
| Bankruptcy12 |
Some cases |
Some cases |
Some cases |
Some cases |
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 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. |
| |
|
|
