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

Below is a brief explanation of each type of deferment and cancellation.

Deferments:

1. Student - Full time / Half-time - A borrower may defer repayment of a Perkins Loans, NDSL, or National Defense Student Loan (Defense Loan) if he or she is enrolled at least half-time in a eligible institution. Interest will not accrue during the deferment. To receive a deferment based on at least half-time enrollment, also called an in-school deferment, the student must be enrolled as a regular student in an eligible institution of higher education or a comparable institution outside the United States approved by the Department for deferment purposes. However, it is not a requirement that the school participate in the Federal Perkins Loan Program. If a borrower is attending a school that ceases to qualify as an institution of higher education, the borrower’s deferment ends on the date the school ceases to qualify. A regular student is one who is enrolled for the purpose of obtaining a degree or certificate. If the borrower is attending at least half time as a regular student for a full academic year and intends to do so in the next academic year, he or she is entitled to a deferment for 12 months.
2. Volunteer Peace Corps or Domestic Volunteer Act of 1973 – A borrower may defer repayment for up to three years and interest will not accrue while he or she is a Peace Corps volunteer, a volunteer under Title I, Part A of the Domestic Volunteer Service Act of 1973 (ACTION programs), or a full-time volunteer in service for a tax-exempt organization that the Department has determined is comparable to Peace Corps or ACTION service. A borrower is considered to be providing service comparable to Peace Corps or ACTIONS service if he or she meets all of the following five criteria: 1) The borrower serves in an organization that is exempt from taxation under the provision of Section 501©(3) of the Internal Revenue Code of 1954. 2) The borrower provides service to low-income person and their communities to assist them in eliminating poverty and poverty related human, social, and environmental conditions. 3) The borrower does not receive compensation that exceeds the rate prescribed under Section 6 of the Fair Labor Standards Act of 1938 (the federal minimum wage), except that the tax-exempt organization may provide the volunteer with health, retirement, and other fringe benefits that are substantially equivalent to the benefits offered to other employees of the organization. 4) The borrower, as part of his or her duties, does not give religious instruction, conduct worship service, engage in religious proselytizing, or engage in fund raising to support religious activities. 5) The borrower has agreed to serve on a full-time basis for a term of at least one year.
3. Full time member of Armed Forces – A borrower may defer repayment for up to three years and interest will not accrue while he or she is a member of the U.S. Army, Navy, Air Force, Marines, or Coast Guard, a member of the National Guard or the Reserves serving a period of full-time active duty in the armed forces, or an officer in the Commissioned Corps of the U.S. Public Health Service.
4. Internship or Residency – A borrower whose Perkins Loan was made before July 1, 1993 and who is serving in a medical internship or residency program is not considered to be in school for deferment purposes and may not receive an in-school deferment on the Perkins Loan for the internship or residency program, however, the borrower is eligible for an internship deferment for up to two years. While the borrower is serving an eligible internship, he or she may defer repayment for up to two years. Interest will not accrue during the internship deferment. An eligible internship is one that requires the borrower to hold at least a bachelor’s degree before beginning the program; in addition, the internship must meet the criteria of either a or b. A) The successful completion of the internship must be required by the state licensing agency as a prerequisite for certification of the individual for professional practice of service. For this type of eligible internship, the borrower must provide the school with the following certification. 1) A statement from an official of the appropriate state licensing agency indicating that the successful completion of the internship is required by the state licensing agency as a prerequisite for certification for professional practice or service. 2) A statement from the organization where the borrower will be an intern certifying that attaining a bachelor’s degree is required to be admitted in the program. 3) A statement from the organization where the borrower will be an intern indicating that the borrower has been accepted into its internship program and certification of the dates when the borrower is expected to begin and complete the program. B) The internship or residency program must lead to a degree or certificate awarded by an institution of higher education, a hospital, or health care facility offering postgraduate training. For this type of eligible internship, the borrower must provide the school with a statement from an authorized official of the internship program certifying the individual must have a bachelor’s degree to be admitted in the program. The borrower has been accepted into the program and the internship or residency program leads to a degree or certificate awarded by an institution of higher education, a hospital, or health care facility that offers postgraduate training.
5. A member of oceanic and atmospheric administration corp. – A borrower my defer repayment for up to three years and interest will not accrue while he or she is on full-time active duty as a member of the National Oceanic and Atmospheric Administration Corps
6. Mother of pre-school age children who entered/reentered the work force, and is making $1.00 less above minimum wage – A borrower of a Perkins Loan made before July 1, 1993 may also defer repayment and interest will not accrue during a period up to one year if the borrower is a mother of a preschool-age child, provided the mother is going to work or going back to work, at a salary that is no more than $1.00 above the minimum hourly wage.
7. I am pregnant, caring for my newborn, or caring for a child immediately after adoption – A borrower of a Perkins Loan made before July1 1993 may also defer up to 6 months if the borrower is pregnant, or if he or she is taking care of a newborn or newly adopted child. The borrower must be unemployed and not attending school and must apply for deferment within six months of leaving school or dropping below half-time status.
8. Graduate / Fellowship – A borrower enrolled and in attendance as a regular student in a course of study that is part of a graduate fellowship program approved by the Department may defer payments. A borrower is engaged in graduate or postgraduate fellowship- supported study such as a Fulbright grant outside the United States.

Cancellations:

1. Teacher in a designated school listed in the “Federal Register” – The borrower of a Perkins Loan or NDSL made after July 1, 1987 is eligible to have up to 100% of the loan canceled for qualifying service. As a full-time teacher in a public or nonprofit elementary or secondary school serving students from low-income families. As a full-time teacher of handicapped students in a public or nonprofit elementary or secondary school. The majority of the students the borrower teaches must be handicapped children.
2. Staff member performing qualified service under the Head start Act – A Perkins Loan or NDSL borrower who received the loan on or after July 1, 1987 is entitled to cancellation of up to 100% of the loan for qualifying service as 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% of the original principal loan amount – plus the interest that accrued during the year – for each complete school year. A full-time member is someone who is regularly employed in a full-time professional capacity to carry out the educational part of a Head Start program. The program must operate for a full academic year, or its equivalent, and the borrower’s salary may not be more than that of a comparable employee working in the local educational agency. An authorized official of the Head Start Program must sign the borrower’s cancellation form.
3. Special education teacher or Qualified provider or Early Intervention services – 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. A full-time qualified professional provider of early intervention services in a public or other nonprofit program under public supervision. Infants and toddlers with disabilities from birth to age two, inclusive, who need early intervention services for specified reason. 1) Have a diagnosed physical or mental condition, which has a high probability of resulting in developmental delay. 2) Experiencing developmental delays, as measured by appropriate diagnostic instruments and procedures in one or more of the following areas: cognitive development, physical development, language and speech development, psychosocial development, or self-help skills.
4. Law Enforcement/Corrections officer for an eligible Local, State or Federal agency (loans after 11-29-910) - To establish the eligibility of a borrower for the law enforcement or corrections officer cancellation provision, the school must determine that 1) the borrower’s employing agency is eligible and the 2) the borrower’s position is essential to the agency’s primary mission. 1) A local, state, or federal agency is an eligible employing agency if it is publicly funded and its activities pertain to crime prevention, control, or reduction or to the enforcement of the criminal law. Such activities include, but are not limited to, police efforts to prevent, control, or reduce crime or to apprehend criminals; activities of courts and related agencies having criminal jurisdiction: a activities of corrections, probation, or parole authorities; and problems relating to the prevention, control, or reduction of juvenile delinquency or narcotic addiction. Agencies that are primarily responsible for enforcement of civil, regulatory, or administrative laws are ineligible. 2) For the borrower’s position to be considered essential to the agency’s primary mission, he or she must be a full-time employee of an eligible agency and a sworn office or person whose principal responsibilities are unique to the criminal justice system and are essential in the performance of the agency’s primary mission. The agency must be able to document the employee’s functions. Individuals whose official responsibilities are supportive, such as those that involve typing, filing, accounting, office procedures, purchasing, stock control, food service, transportation, or building, equipment or grounds maintenance are not eligible for the law enforcement or correction officer loan cancellation regardless or where these functions are performed. Also, a borrower employed as a public defender does not qualify for cancellation benefits under this provision.
5. Teacher of Mathematics, Science, Foreign Languages, Bilingual education (loans after 7-23-92) - 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 of expertise’ that is determined by a state education agency to have a shortage of qualified teachers in the state.
6. Nurse – Medical Technician - must provide copies of license / certification – A full-time nurse or medical technician providing health care services. Medical Technician - An allied health professional (working in fields such as therapy, dental hygiene, medical technology, or nutrition) who is certified, registered, or licensed by the appropriate state agency in the state in which he or she provides health care services; an allied health professional is someone who assists, facilitates, or complements the work of physicians and other specialists in the health care system. Nurse – A licensed practical nurse, a registered nurse, or other individual who is licensed by the appropriate state agency to provide nursing services.
7. Service agent providing or supervising the provision of services to high risk children from low-income communities and families of such children - 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. The borrower may also be providing services to adults, but these adults must be members of the families of the children for whom services are provided. The services provided to adults must be secondary to the services provided to the high-risk children. The department has determined that an elementary or secondary school system or a hospital is not an eligible employing agency. High- risk children under the age of 21 who are low-income and at risk of abuse or neglect have been abused or neglected, have serious emotional, or behavioral disturbances, reside in placements outside their homes, or are involved in the juvenile justice system.