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Federal Perkins Loan

Upon making a properly documented written request to the school, up to 100% of the original principal loan amount may be cancelled by performing service in the areas listed in paragraphs 1, 2, 3, 4 and 5 below. Qualifying service must be performed after you receive the loan. 

Rates for Teacher and other Employment Cancellations are up to 100% of the outstanding loan principal balance may be cancelled at the rate of 15% the 1st and 2nd year, 20% the 3rd and 4th year, and 30% the 5th year.

Teacher Cancellations

A teacher is defined as one who is a professional employee of a school or school system working full-time for a complete academic year or its equivalent and who is devoted to providing classroom instruction or related services in support of the educational program.

  1. Full-time teacher in a public or nonprofit elementary or secondary school designated by the Secretary of Education as having a high concentration of low-income students, and in which more than 30 percent of the school’s enrollment is Title I children, according to the list published annually in the Federal Register.
  2. Full-time special education teacher , including teachers of infants, toddlers, children and youth with disabilities in a public or nonprofit elementary or secondary school system. The applicant must specify what percentage of students or clients in the class are disabled.
  3. Full-time speech pathologists with a master’s degree working exclusively in Title I schools.
  4. Full-time teacher in a field of expertise such as mathematics, science, foreign languages, bilingual education or other fields where the state education agency determines there is a shortage of qualified teachers.
  5. Full-time faculty members at a Tribal College or University.

Employment Cancellations

The employment must be full-time and for a complete calendar year or its equivalent.

  1. Service as a law enforcement or corrections officer in an eligible local, state or federal agency. The agency must be publicly funded and its principal activities must pertain to crime prevention, control, or reduction or enforcement of criminal law, and your principal responsibilities are unique to the criminal justice system. The applicant must be a sworn law enforcement officer, or a person whose principal responsibilities are unique to the criminal justice system, including public defenders.
  2. Full-time firefighters.
  3. Full-time employment as a nurse or medical technician providing health care services for 12 consecutive months. A medical technical is 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. An allied health professional is someone who assists, facilitates, or complements the work of physicians and other specialists in the health care system.
  4. Providing or supervising the provision of services to high-risk children from low-income communities under the age of 21, and families of such children, and working full-time in a public or private nonprofit child or family service agency for twelve consecutive months.
  5. Qualified professional provider of early intervention services working full-time for twelve consecutive months in a public or other nonprofit program authorized in Section 676 (b)(9) of the Individuals with Disabilities Education Act. Providing developmental services to handicapped children under the age of 3 who have developmental needs in physical, cognitive, language and speech, psycho-social development, or self-help skills.
  6. Librarians with a master’s degree in library science who are employed in a school served under Title I of the ESEA, or a public library serving a Title I school.
  7. Full-time staff members in a prekindergarten or childcare program that is licensed or regulated by the state.

Service Cancellations

  1. Active duty service in the military in an area of hostility that qualifies for special pay under Section 310 of Title 37 of the U.S. Code. Up to 100% of the outstanding principal balance may be cancelled at the rate of 15% the first and second year, 20% the third and fourth year, and 30% the fifth year.
  2. Volunteer service under the Peace Corps Act of Domestic Volunteer Service Act of 1973 (VISTA). Up to 70% of the outstanding loan principal balance may be cancelled, at the rate of 15% for the first two years of service, and 20% for the third and fourth year.
  3. Full-time service in a Head Start program carried out under the Head Start Act (formerly under the Economic Opportunity Act of 1964), and operated for a complete academic year or its equivalent. The applicant must be a full-time educational staff member, and must not earn more than a comparable employee working in the local educational agency. Validation must be attached. Up to 100% of the outstanding loan principal balance may be cancelled, at the rate of 15% for each year of service.