Deferments/cancellation

Cancellation criteria

Cancellation criteria for Federal Perkins Loans Made on or after 7/22/92 Made prior to 7/23/92
Total and permanent disability or death of borrower. Total disability must be physician certified. 100 percent 100 percent
Full-time employment in a head start program. Deferment should be filed at time of commencing full-time employment to postpone payment until year of service is completed. Cancellation form must be completed, certified and submitted annually to qualify. Cancellation rate is 15 percent per full year of service. 100 percent 100 percent
Full-time law enforcement or corrections officer. Applies only to loans made after 11/28/90. Must be employed in a federal, state or local qualifying agency. Law enforcement, support staff do not qualify. Cancellation is 15 percent for the first and second year of service, 20 percent for the second and third years, and 30 percent for the forth and fifth years. Deferments should be filed at time of commencing full-time employment to postpone payment until service year is completed. Cancellation form must be completed, certified and submitted annually to qualify. 100 percent 100 percent
Full-time teaching in low income school eligible for funding under Chapter 1 of the Education Consolidation and Improvement Act of 1981. (Reference book of eligible schools nationwide is available, please ask if you need information on a particular school) If you teach in a school that loses its low income designation, you are still eligible to cancel as long as you teach at that school full-time. Cancellation rate is 15 percent for the first and second years, 20 percent for the third and fourth years and 30 percent for the fifth year. Deferment should be filed at the beginning of the eligible service year to postpone payment. Cancellation form must be completed, certified and submitted annually to qualify. 100 percent 100 percent
Full-time teaching special education in a public or non-profit elementary or secondary school system. Refer to #4 for cancellation rates and criteria. 100 percent 100 percent
Full-time teaching in math, sciences, bilingual Education or any field of expertise determined by the state education agency to have a shortage of qualified teachers. Qualifying areas of service may vary depending upon direction of the state. Refer to #4 for cancellation rates and other criteria. Deferment should be filed before each qualifying year to postpone payment. 100 percent Not Available
Provider of Early Intervention Services in a public or non-profit program under pubic supervision by a lead agency. Full-time service working with toddlers, infants or youth with disabilities as defined and authorized by Section 672 (2) and 602 (a)(1) of the Individuals with Disabilities Education Act. Refer to #4 for cancellation rates and other criteria. Deferment should be filed before each qualifying year to postpone payment. 100 percent Not Available
Provider or Supervisor of Provision of Services to High Risk Children from Low Income Communities and their families. Must be employed in public or non-profit child or family services agency. High risk children are defined as individuals under the age of 21 who: are low-income; have been or are at the risk of being 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 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. Cancellation rates and other criteria see #4. Deferment should be filed before each qualifying year to postpone payment. 100 percent Not Available
Nurse or medical technician providing health care services. Full-time nursing or medical technician providing direct health care services. Secretarial or supporting staffing does not qualify. See #4 for cancellation rates and criteria. Deferment should be filed before each qualifying year to postpone payment. 100 percent Not Available
Peace Corp or ACTION program volunteer. Qualifying service under the Peace Corps Act or as a volunteer under the Domestic Volunteer Service Act of 1973 (Action Programs) may cancel up to 70 percent of Perkins Loans. Cancellation rate is 15 percent for the first and second year of service and 20 percent the third and fourth year of service. Deferment should be filed before each qualifying year of service to postpone payment. 70 percent 70 percent
Military cancellation. Serving in the U.S. Armed Forces in an area of hostilities that qualifies for special pay under section 310 of Title 37 of the United States Code may cancel up to 50 percent of Perkins Loans. Cancellation rate is 12.5 percent per full year of qualifying service. 50 percent 50 percent

General information:

  1. All service eligible for cancellation benefits must be performed after the period in which you received the loan.
  2. You must file forms to defer and cancel every year you expect to receive this benefit.
  3. All forms must be certified by your employer and you may be expected in some cases to provide back up documentation such as job descriptions.
  4. It is your responsibility to request forms in a timely manner and return them to receive this benefit. The billing service and Saint Martin's University will always have these forms.
  5. Qualifying service for this benefit must be full-time in every case. For teachers a year of full-time employment means a full academic year. Yes, long term substitution qualifies if it is documented that you served every day for a full year just like contract teachers.