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Perkins Loan | Cancellation Options

General Information

Forms can be downloaded from this website or from www.uasecho.com, forms are printed on all bills and grace notices, and hard copies of the form may be requested from this office to be mailed. 

You do not have to be employed in Iowa to be eligible for cancellation. Employment in any of the 50 states or its territories qualifies for cancellation.

You must file a completed form with all the required documentation to be eligible for cancellation. Different cancellations require different documents and they have been noted on each type.

If you continue to receive bills or past due notices, but you think your cancellation should have been processed, contact this office right away. Either we did not receive your form, or there was an error made, or documentation was missing and we are holding your form.

The cancellation process is two-part. The first step is the postponement (deferment), applied at the beginning of your twelve months of eligible employment. It verifies for us that you are currently working in eligible employment and plan to stay there for at least twelve months. This defers all payments, interest does not accrue, and a good report continues to be sent to the credit bureau. 

At the end of twelve months, we will send you another form to file verifying that you completed a year of eligible employment. On that same form, if you are continuing in the same job, you will have it verified that you plan to continue for the upcoming twelve months. From that one form, we will cancel a portion of your loan for the twelve months just ending and postpone for the upcoming twelve months. Cancellation can only be done after employment has been completed every twelve months.

If you do not complete a year of eligible employment, you must contact this office. We will convert the postponement to a deferment ending with your last day of employment, then add a six-month grace period to that date. The payments that were postponed during that time are now deferred, no interest has accrued, and you have the six-month post-deferment grace.

You must be sure to file your form every year to continue this benefit.

TO RECEIVE POSTPONEMENT/CANCELLATION

Fill out and sign your form, have an official certify your employment information, and return the form to UAS with a copy of your official job description. A determination of whether or not you qualify will be made after the receipt of your completed form.

General process: The postponement is the first step in the cancellation process. It stops all billings and keeps your account from going past due until the end of this twelve-month period.  The cancellation is the second and final step in the process. By requesting cancellation, you are telling us you have now completed the year of service and are now eligible to have a portion of your loan forgiven (cancelled).

IF YOU FAIL TO COMPLETE YOUR YEAR OF EMPLOYMENT: : Your postponement is then considered a deferment. You will need to send verification of your last date of employment, and we will use that as your deferment end date. There is a six-month grace period following this deferment in which no interest accrues and no payments are due.

Rates of cancellation: 15% of the original principal balance, plus interest for the first and second year, 20% for the third and fourth years, and 30% for the fifth year. If you continue in eligible employment and file all your forms, your loan would be cancelled in full at the end of five years.