A borrower may have all or part of his or her loan (including interest) canceled
for engaging in public service such as teaching, service in the education component
of a Head Start program, service in the Peace Corps or ACTION, or service in the
military. Cancellation is also granted in case of the borrower's death or total and
permanent disability.
Please note regulatory changes effective August 14, 2008, extend certain cancellations
( Firefighter, Public Defender, Librarian, Tribal College/University Faculty, Pre-K provider, Speech Pathologist)
to borrowers who have performed qualified service for any 12 month period including August 14, 2008 or after.
Changes have also been made for borrowers who have received Total and Permanent Disability classification from the VA.
These cancellations are effective for service performed after August 14, 2008
and cannot be granted for periods of service prior to that date.
Although cancellation provisions vary based on when a loan was disbursed, the
following procedures apply to any loan:
Requests for cancellation must be completed annually on the appropriate cancellation
form.
No portion of the loan may be canceled for services performed before the loan
was disbursed or during the enrollment period covered by the loan.
No repayment made during a period for which a borrower qualified for cancellation
may be refunded. Therefore, it is the borrower's responsibility to file forms in
a timely manner.
The following cancellations may be available to borrowers whose loans are serviced
by Conduent' CPS Division. Click on a specific cancellation type to review the eligibility
requirements.
All forms are in Adobe Acrobat PDF format. You may obtain the free Adobe Acrobat
reader which will allow you to print or view the forms here.
FEDERAL PERKINS STUDENT LOAN CANCELLATION BENEFITS
TEACHER CANCELLATION - Loans on or after 7/1/72:
A borrower may be eligible to cancel all or a portion of their loan for teaching
services as follows:
- A full-time teacher in a public or nonprofit elementary or secondary school serving
students from low-income families.
- A full-time teacher of handicapped students in a public or nonprofit elementary
or secondary school. The majority of children being taught must handicapped.
The cancellation rate is as follows:
- 15% of the original principal loan amount plus accrued interest for the first
and second years of service.
- 20% of the original principal loan amount plus accrued interest for the third
and fourth years of service.
- 30% of the original principal loan amount plus accrued interest for the fifth
year of service.
To receive a teacher cancellation, the borrower must be teaching full-time in a public
or other nonprofit elementary or secondary school, or be a teacher in a low-income educational service agency.
An eligible teacher is
defined as:
- direct classroom teaching
- classroom type teaching in a non-classroom setting
- educational services directly related to classroom teaching (school librarians
and school guidance counselors are eligible under this category)
Eligibility - NDSL/ Perkins loans made on or after July 1, 1972
Maximum Amount
Canceled - Up to 100%
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HEAD START:
A borrower may qualify for a cancellation for service as a full-time staff member
in the educational part of a preschool program carried out under the Head Start Act.
Eligibility - NDSL/Perkins loans made on or after July 1, 1972
Maximum Amount
Canceled - Up to 100% at a rate of 15% of the original principal loan amount plus
accrued interest for each year of service
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TEACHING/EMPLOYMENT CANCELLATIONS - Loans on or
after 7/23/92:
In addition to the teaching cancellations mentioned above, a borrower may be eligible
to cancel all or a portion of their loan as follows:
- A full-time special education teacher, including teachers of infants, toddlers,
children, or youth with disabilities in a public or nonprofit elementary or secondary
school system.
- A full-time teacher in a public or other non-profit 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 that state.
- A full-time nurse or medical technician providing health care services.
- A full-time qualified professional provider of early intervention services in
a public or other nonprofit program under public supervision.,
- 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 children must be the primary recipients of the services.
PLEASE NOTE:The Higher Education Amendments of 1988, signed into law on October 7,
1998, extend the above cancellation benefits to borrowers whose NDSL / Perkins loans
were issued prior to July 23, 1992. The Teaching / Employment cancellations are in
addition to the others listed in your promissory note but cannot be granted for service
performed prior to October 7, 1998. The cancellation rate is as follows:
- 15% of the original principal loan amount and accrued interest for the first
and second years of service.
- 20% of the original principal loan amount and accrued interest for the third
and fourth years of service.
- 30% of the original principal loan amount and accrued interest for the fifth
year of service.
Eligibility - Federal Perkins loans made on or after July 23, 1992 or NDSL / Perkins
loans made on or before July 23, 1992 for service performed beginning October 7,
1998
Maximum Amount Canceled - Up to 100%
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LAW ENFORCEMENT:
A borrower may be entitled to receive cancellation benefits for full-time service
as a qualifying law enforcement or corrections officer. To establish the eligibility
of a borrower for this benefit, the school must determine a) the borrower's employing
agency is eligible and b) the borrower's position is essentials to the agency's primary
mission.
- 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; 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 regulatory, civil, or administrative
laws are ineligible.
- 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
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.
Individuals whose official responsibilities are supportive, such as those that involve
filing, typing, accounting, office procedures, purchasing, stock control, food service,
transportation, or building, equipment or grounds maintenance are not eligible regardless
of where these functions are performed. A borrower employed as a public defender
also does not qualify for this benefit. Note: Borrowers serving as campus police
or military police do qualify for this benefit. The cancellation rate is as follows:
- 15% of the original principal loan amount and accrued interest for the first
and second years of service.
- 20% of the original principal loan amount and accrued interest for the third
and fourth years of service.
- 30% of the original principal loan amount and accrued interest for the fifth
year of service.
Eligibility - Perkins loans made on or after November 29, 1990 or NDSL loans made
before November 29, 1990 for service performed beginning October 7, 1998
Maximum
Amount Canceled - Up to 100%
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MILITARY SERVICE:
A borrower may cancel a portion of their loan for service in the U.S. Armed Forces
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.
Effective August 14, 2008, The HEOA removes the 50% limitation on military service cancellations.
Borrowers may now receive military service cancellation for service in an area of hostilities of up to 100% percent of the loan.
Eligibility - Federal Perkins or NDSL/ Perkins Loans for
service performed for 12 month period including or after August 14, 2008
Maximum Amount Canceled - Up to 100%
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VOLUNTEER SERVICE:
A borrower may cancel a portion of their loan for volunteer service under the
Peace Corps or Vista Service.
Eligibility - Perkins loans made on or after July 1, 1987 or NDSL loans made before
July 1, 1987 for service performed beginning October 7, 1998
Maximum Amount Canceled
- Up to 70% of the loan at the following increments:
- 15% of the original principal loan amount plus accrued interest for the first
and second years of service.
- 20% of the original principal loan amount plus accrued interest for the third
and fourth years of service.
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TOTAL/PERMANENT DISABILITY:
A loan will be granted a conditional cancellation by the Department of Education upon the lending institution's approval of the disability request for a borrower who became permanently and totally disabled after receiving the loan. A determination of permanent and total disability must be based on medical evidence certified by a physician (medical doctor or doctor of osteopathy). If a loan is granted a final discharge based on permanent and total disability, the borrower can not be required to repay the loan, even if the borrower's medical condition improves to the point of no longer being disabled, unless the school can prove that the claim of disability was fraudulent. The beginning date of the 3 year conditional discharge will be the date the physician certifies the request form. At the end of 3 years, the Department of Education will review the case and make a determination for final discharge or repayment status.
For detailed information regarding TPD, please review the Department of Education’s website at: http://www.disabilitydischarge.com/Pages/General.aspx
Eligibility - Perkins, and Federal Perkins loans
Maximum
Amount Canceled - 100%
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DEATH:
A loan will be canceled in full upon receipt of proof of the borrower's death. Proof must be in the form of the original certified death certificate or a valid copy of a certified death certificate.
Eligibility - All National Defense, NDSL, Perkins, and Federal Perkins loans
Maximum
Amount Canceled - 100%
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9/11 SURVIVORS:
Effective September 30, 2006 (and NOTretroactive), loan principal will be canceled for a borrower who is the surviving spouse of an eligible public servant. An eligible public servant is a police officer, firefighter, member of the Armed Forces, or other safety or rescue personnel who died or became permanently and totally disabled as a result of injuries suffered in the September 11, 2001 terrorist attacks at the World Trade Center in New York, New York; at the Pentagon in Virginia; at the Shanksville, Pennsylvania site; or on board American Airlines flights 11 and 77 and United Airlines flights 93 and 175. This cancellation applies to loans on which amounts were owed on September 11, 2001 and on which amounts are still owed on the day cancellation is requested.
Eligibility - Perkins, and Federal Perkins loans
Maximum
Amount Canceled - 100%
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FIREFIGHTER:
full-time fire fighters with a local, State, or Federal fire department or fire district
Eligibility - Federal Perkins or NDSL/ Perkins Loans for service performed for 12 month period including or after August 14, 2008
Maximum Amount Canceled - Up to 100%
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PUBLIC DEFENDER:
full-time attorneys employed in Federal Public Defender Organizations or Community Defender Organizations, established in accordance with Section 3006A(g)(2) of Title 18, U.S.C. (see http://frwebgate.access.gpo.gov/cgibin/ getdoc.cgi?dbname=browse_usc&docid=Cite:+18USC3006A).
Eligibility - Federal Perkins or NDSL/ Perkins Loans for service performed for 12 month period including or after August 14, 2008
Maximum Amount Canceled - Up to 100%
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LIBRARIAN:
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
Eligibility - Federal Perkins or NDSL/ Perkins Loans for service performed for 12 month period including or after August 14, 2008
Maximum Amount Canceled - Up to 100%
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TRIBAL COLLEGE/UNIVERSITY FACULTY:
full-time faculty members at a Tribal College or University
Eligibility - Federal Perkins or NDSL/ Perkins Loans for service performed for 12 month period including or after August 14, 2008
Maximum Amount Canceled - Up to 100%
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PRE-K SERVICE PROVIDER:
full-time as a staff member in a pre-kindergarten or childcare program, or in the educational part of a preschool program carried out under the Head Start Act.
Eligibility - Federal Perkins or NDSL/ Perkins Loans for service performed for 12 month period including or after August 14, 2008
Maximum Amount Canceled - Up to 100%
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SPEECH PATHOLOGIST:
full-time speech-language pathologists with a master's degree who are working exclusively with Title I-eligible schools.
Eligibility - Federal Perkins or NDSL/ Perkins Loans for service performed for 12 month period including or after August 14, 2008
Maximum Amount Canceled - Up to 100%
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VA APPROVED TOTAL/PERMANENT DISABILITY:
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NURSING STUDENT LOAN (NSL) CANCELLATION BENEFITS
PERMANENT AND TOTAL DISABILITY:
Should the borrower become unable to engage in any substantially gainful activity
because of a medically determined impairment, the unpaid balance of the loan and
accrued interest may be canceled. To claim this entitlement, the borrower must submit
to the lending institution, a formal request for loan cancellation and a physician's
statement that certifies the date of onset, nature and extent of the disability.
Eligibility: All NSL Loans
Maximum Amount Canceled: 100%
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DEATH:
Principal and interest installments may be canceled in the event of death. To
claim this cancellation, the executor of the estate must submit a death certificate
or evidence of death to the lending institution.
Eligibility: All NSL Loans
Maximum Amount Canceled: 100%
Note: A service cancellation for full-time employment as a registered nurse is
available for NSL loans made prior to September 29, 1979. Consult the promissory
note for eligibility.
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HEALTH PROFESSIONS STUDENT LOAN (HPSL, LDS, PCL) CANCELLATION BENEFITS
PERMANENT AND TOTAL DISABILITY:
Should the borrower become unable to engage in any substantially gainful activity
because of a medically determined impairment, the unpaid balance of the loan and
accrued interest may be canceled. To claim this entitlement, the borrower must submit
to the lending institution, a formal request for loan cancellation and a physician's
statement that certifies the date of onset, nature and extent of the disability.
Eligibility: All HPSL Loans
Maximum Amount Canceled: 100%
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DEATH:
Principal and interest installments may be canceled in the event of death. To
claim this cancellation, the executor of the estate must submit a death certificate
or evidence of death to the lending institution.
Eligibility: All HPSL Loans
Maximum Amount Canceled: 100%
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