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Cancellation Benefits

Federal Perkins Loan Cancellations
Federal Nurse Faculty Loan Cancellations
Federal Nursing Loan, School of Nursing Loan and Medical School Loan Death Cancellations
Definitions

Federal Perkins Loan Cancellations:

  • Teacher Cancellation Provision:

    The borrower of a Perkins Loan is eligible to have up to 100% of the loan cancelled for serving full-time in a public or nonprofit elementary or secondary school system as:

    • a teacher in a low-income school or a low-income educational service agency,
    • a special education teacher, including teachers of infants, toddlers, children or youth with disabilities*,
    • a teacher of science, mathematics, foreign language or bilingual education*, or
    • a teacher in a teacher shortage field that is determined by the state education agency to have a shortage of qualified teachers in that state.*

    * For borrowers whose loans were made before July 23, 1992, the effective date of eligibility is October 1, 1998.

    Note to AmeriCorps volunteer teachers: No borrower who has received benefit under subtitle D of Title I of the National and Community Service Act of 1990 may receive a cancellation benefit for the same period [34 CFR 674.52 (e)].

    Cancellation rate per completed academic year of teaching:

    • 15% of the principal for each of the first and second years.
    • 20% of the principal for each of the third and fourth years.
    • 30% of the principal for the fifth year.

    A cancellation period consists of a full academic year or its equivalent. The equivalent of an academic year is considered two full half years and is completed upon the anniversary date of employment. As this period will encompass portions of two regular academic years, a postponement form must be submitted for each year.

  • Head Start Cancellation Provision:

    The borrower of a Perkins Loan is eligible to have up to 100% of the loan cancelled for qualifying service as a full-time teacher or staff member in the educational part of a preschool program carried out under the Head Start Act or a full-time staff member in a pre -kindergarten or childcare program that is licensed or regulated by the State.

    Cancellation rate per completed academic year of teaching or completed year of employment:

    • 15% of the principal for each year.

    A cancellation period consists of a full academic year or its equivalent. The equivalent of an academic year is considered two full half years and is completed upon the anniversary date of employment. As this period will encompass portions of two regular academic years, a postponement form must be submitted for each year.

  • Volunteer Service Cancellation Provision:

    The borrower of a Perkins Loan is eligible to have up to 70% of the loan cancelled for full-time service as a Peace Corps volunteer or volunteer under the Domestic Volunteer Service Act ( AmeriCorps *VISTA).

    Cancellation rate per completed year of service:

    • 15% of the principal for each of the first and second 12-month periods of service.
    • 20% of the principal for each of the third and fourth 12-month periods of service.

    A cancellation period consists of a full year of employment. If the borrower changes employers, there must be no gap between periods of employment to maintain the cancellation year. For borrowers whose loans were made before July 1, 1987, the effective date of eligibility is October 1, 1998.

  • Law Enforcement Cancellation Provision:

    The borrower of a Perkins Loan is eligible to have up to 100% of the loan cancelled for full-time service as a qualifying law enforcement or corrections officer or public defender.

    Cancellation rate per completed year of employment:

    • 15% of the principal for each of the first and second years.
    • 20% of the principal for each of the third and fourth years.
    • 30% of the principal for the fifth year.

    A cancellation period consists of a full year of employment. If the borrower changes employers, there must be no gap between periods of employment to maintain the cancellation year. For borrowers whose loans were made before November 29, 1990, the effective date of eligibility is October 1, 1998.

    The effective date of the public defenders cancellation provision is August 14, 2008.

  • Nurse or Medical Technician Cancellation Provision:

    The borrower of a Perkins Loan is eligible to have up to 100% of the loan cancelled for full-time service as a nurse or medical technician providing health care services directly to patients.

    Cancellation rate per completed year of employment:

    • 15% of the principal for each of the first and second years.
    • 20% of the principal for each of the third and fourth years.
    • 30% of the principal for the fifth year.

    A cancellation period consists of a full year of employment. If the borrower changes employers, there must be no gap between periods of employment to maintain the cancellation year. For borrowers whose loans were made before July 23, 1992, the effective date of eligibility is October 1, 1998.

  • Early Intervention Cancellation Provision:

    The borrower of a Perkins Loan is eligible to have up to 100% of the loan cancelled for full-time service as a qualified professional provider of early intervention services in a public or other nonprofit program under public supervision.

    Cancellation rate per completed year of employment:

    • 15% of the principal for each of the first and second years.
    • 20% of the principal for each of the third and fourth years.
    • 30% of the principal for the fifth year.

    A cancellation period consists of a full year of employment. If the borrower changes employers, there must be no gap between periods of employment to maintain the cancellation year. For borrowers whose loans were made before July 23, 1992, the effective date of eligibility is October 1, 1998.

  • Child or Family Services Cancellation Provision:

    The borrower of a Perkins Loan is eligible to have up to 100% of the loan cancelled for full-time employment as an employee of an eligible public or private nonprofit child or family service agency who is directly and exclusively providing or supervising the provision of services to both high-risk children who are from low-income communities and the families of such children.

    Cancellation rate per completed year of employment:

    • 15% of the principal for each of the first and second years.
    • 20% of the principal for each of the third and fourth years.
    • 30% of the principal for the fifth year.

    A cancellation period consists of a full year of employment. If the borrower changes employers, there must be no gap between periods of employment to maintain the cancellation year. For borrowers whose loans were made before July 23, 1992, the effective date of eligibility is October 1, 1998.

  • Public Service Cancellation Provision:

    The borrower of a Perkins Loan is eligible to have up to 100% of the loan cancelled for full-time employment in certain public service professions.

    Cancellation rate per completed year of employment:

    • 15% of the principal for each of the first and second years.
    • 20% of the principal for each of the third and fourth years.
    • 30% of the principal for the fifth year.

    A cancellation period consists of a full year of employment. If the borrower changes employers, there must be no gap between periods of employment to maintain the cancellation year. The effective date of for this cancellation provision is August 14, 2008.

  • Military Service Cancellation Provision:

    The borrower of a Perkins Loan is eligible to have up to 100% of the loan cancelled for qualifying service as a full-time active duty member in the armed forces (U.S. Army, Navy, Air Force, Marine Corps, Coast Guard). A member of the National Guard or the Reserves serving a period of full-time active duty in the armed forces is also eligible to receive a military deferment. To qualify, a borrower must be serving in an area of hostilities or in an area of imminent danger that qualifies for special pay under Section 310 of Title 37 of the U.S. Code. The borrower’s commanding officer must certify the borrower’s service dates.

    Cancellation rate per completed year of service:

    • 15% of the principal for each of the first and second years.
    • 20% of the principal for each of the third and fourth years.
    • 30% of the principal for the fifth year.

    A complete year of service is twelve consecutive months. The Department of Education has determined that if a borrower is on active duty in a hostile fire/imminent danger pay area for any part of a month, that month counts towards the borrower’s eligibility for a military cancellation.

  • Death Cancellation and Total and Permanent Disability Discharge:

    In the event of the borrower's death, the unpaid indebtedness remaining on the note shall be cancelled . Please contact the Office of Student Loans for details

    In the event of the borrower's total and permanent disability, the unpaid indebtedness remaining on the note may be discharged. To apply for discharge due to total and permanent disability, please visit the Department of Education Total and Permanent Disability Discharge website at www . disabilitydischarge .com or contact them at 888-303-7818  or disabilityinformation @ nelnet .net..

  • Applying for benefits:

    The cancellation process consists of two steps: postponement and cancellation.

    Postponement: During the postponement period, regular principal payments are deferred while the borrower is performing a service that will subsequently qualify him or her for cancellation of all or a portion of the loan. Acceptance requires certification of employment or service by the employer or agency and a detailed job description.

    To apply for postponement, print and complete this postponement / cancellation form.

    Borrowers applying for benefits under the child or family service cancellation provision must also print and complete this form.

    Cancellation: A borrower must then apply for cancellation benefits at the end of a full year of eligible employment or service. Prior postponement is not required to be eligible for cancellation benefits.

    To apply for cancellation, print and complete this postponement / cancellation form.

    Borrowers applying for benefits under the child or family service cancellation provision must also print and complete this form. 

    Note: Determination of eligibility for cancellation benefits is the responsibility of the University.

Federal Nurse Faculty Loan Cancellations:

  • Nurse Faculty Cancellation Provision:

    The borrower of a Federal Nurse Faculty Loan is eligible to have up to 85% of loan principal and interest cancelled for full-time employment as a nurse faculty member at a school of nursing.

    Cancellation rate per completed year of employment:

    • 20% of the principal, plus any interest that may have accrued during the year, for each of the first three years.
    • 25% of the principal, plus any interest that may have accrued during the year, for the fourth year.
  • Death or Disability Cancellations:

    In the event of the borrower's total and permanent disability or death, the unpaid indebtedness remaining on the note shall be cancelled . Please contact the Office of Student Loans for details.

  • Applying for benefits:

    The cancellation process consists of two steps: postponement and cancellation.

    Postponement: During the postponement period, regular principal payments are deferred while the borrower is performing a service that will subsequently qualify him or her for cancellation of a portion of the loan. Acceptance requires certification of employment by the employer.

    To apply for postponement, print and complete this postponement form.

    Cancellation: A borrower must then apply for cancellation benefits at the end of a full year of eligible employment.

    To apply for cancellation, print and complete this cancellation form.

Federal Nursing, School of Nursing and Medical School Loan Cancellations:

  • Death or Disability Cancellations:

    In the event of the borrower's total and permanent disability or death, the unpaid indebtedness remaining on the note shall be cancelled . Please contact the Office of Student Loans for details.

Definitions:

Low income communities are defined as those in which there is a high concentration of children eligible to be counted under Title I of the Elementary and Secondary Education Act of 1965, as amended.

Children and youth with disabilities are defined as those from ages 3 through 21, inclusive, who require special education and related services because they have disabilities as defined in section 602(3) of the Individuals with Disabilities Education Act. Section 602(3) defines "a child with a disability" as one with mental retardation, hearing impairments (including deafness), speech of language impairments, visual impairments (including blindness), serious emotional disturbance, orthopedic impairments, autism, traumatic brain injury, other health impairments, or specific learning disabilities who, by reason thereof, needs special education and related services.

The term may also include, at a state's discretion, individuals aged 3 through 9 who (1) are experiencing developmental delays, as defined by the State and as measured by appropriate instruments and procedures, in one or more of the following areas: physical development, cognitive development, communication development, social or emotional development, or adaptive development; OR (2) require special education and related services due to developmental delays.

Law enforcement or corrections officer is defined as a person who is employed by a local, state or federal agency that is publicly funded and whose 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; 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.

A borrower’s position is considered essential to the agency’s primary mission if he or she is a full-time employee of an eligible agency and a sworn law enforcement or corrections officer 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. Examples of positions that are considered essential to a law enforcement agency’s primary mission and that are unique to the criminal justice system include prosecuting attorneys whose primary responsibilities are to prosecute criminal cases on behalf of law enforcement agencies, forensic scientists, and latent fingerprint examiners.

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 of where these functions are performed.

Public defender is defined as a full-time attorney employed in a Federal Public Defender Organization or Community Defender Organization, established in accordance with Section 3006A(g)(2) of Title 18, U.S.C. A directory of these organizations can be found here.

Nurse is defined as a licensed practical nurse, a registered nurse, or other individual who is licensed by the appropriate state agency to provide nursing services.

Medical technician is defined as an allied health professional 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.

Qualified professional provider of early intervention services is defined as a provider of services, as defined in section 632 of the Individuals with Disabilities Education Act.

Section 632 of that Act defines early intervention services as developmental services that:

  • are provided under public supervision;
  • are provided at no cost except where federal or state law provides for a system of payments by families, including a schedule of sliding fees;
  • are designed to meet the developmental needs of an infant or toddler with a disability in one or more of the following areas: physical development, cognitive development, communication development, social or emotional development, or adaptive development;
  • meet the standards of the state in which they are provided;
  • are provided by qualified personnel, including: special educators; speech and language pathologists and audiologists; occupational therapists; physical therapists; psychologists; social workers; nurses; nutritionists; family therapists; orientation and mobility specialists; and pediatricians and other physicians;
  • to the maximum extent appropriate, are provided in natural environments, including the home, and community settings in which children without disabilities participate;
  • are provided in conformity with an individualized family service plan adopted in accordance with Section 636 of the Individuals with Disabilities Education Act.

Under the Individuals with Disabilities Education Act, early intervention services include: family training, counseling, and home visits; special instruction; speech-language pathology and audiology services; occupational therapy; physical therapy; psychological services; service coordination services; medical services only for diagnostic or evaluation purposes; early identification, screening and assessment services; health services necessary to enable the infant or toddler to benefit from the other early intervention services; social work services; vision services; assistive technology devices and services; and transportation and related costs necessary to enable infants, toddlers, and their families to receive other services identified in 632(4).

Infants and toddlers with disabilities are defined as those under age three, inclusive, who need early intervention services for specific reasons, as defined in section 632(5)(A) of the Individuals with Disabilities Education Act.

The Act defines infants and toddlers with disabilities as those who are (1) experiencing developmental delays as measured by the appropriate diagnostic instruments and procedures in one or more of the areas of cognitive development, social or emotional development and adaptive development or (2) have diagnosed physical or mental conditions which have a high probability of resulting in developmental delay.

The term may also include, at a state's discretion, individuals from birth to age two, inclusive, who are at risk of having substantial developmental delays if early intervention services are not provided.

High-risk children are defined as individuals under the age of 21 who are low-income or at risk of abuse or neglect, have been abused or neglected, have serious emotional, mental, or behavioral disturbances, reside in placements outside their homes, or are involved in the juvenile justice system.

Public service professions are defined as

  • full-time firefighters with a local, State or Federal fire department or fire district;
  • full-time faculty members at a Tribal College or University
  • librarians with a master's degree in library science who are employed in an elementary or secondary school that qualifies for Title I funding, or in a public library that serves a geographic area that includes one or more Title I schools;
  • full-time speech-language pathologists with a master's degree who are working exclusively with Title I eligible schools