Cancellation Options

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.

Rate 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.

Head Start Postponement

Full-time staff members in the educational part of pre-school program carried out under the Head Start Act qualify for cancellation on their Federal Perkins Loans.

A full-time staff member is defined as: Someone who is regularly employed in a full-time professional capacity to carry out the educational part of a Head Start program. This would mean that you do not have to be employed as a teacher, but must be a part of educational staff. For example, a classroom aide would qualify but a secretary would not.

You must be employed a full academic year, or its equivalent and your salary cannot be more than that of a comparable employee working in the local educational agency.

To receive the postponement/cancellation: Fill out and sign your form, have an authorized official of the Head Start Program certify the information provided concerning your employment, and return the form to this office for processing.

General process: The postponement form is done at the beginning of your year and certifies that you are employed at Head Start in a qualifying position and plan to work the full year. We then code your account so no bills are sent or due, and your loans report as deferred to the credit bureau. The cancellation form is done at the end of your academic year and certifies that you have completed a year of eligible employment. When processed, a portion of your loan is cancelled -- principal and interest. If you continue in eligible employment, the process starts over.

If you fail to complete your year of employment: Your loan is eligible for deferment for the portion of the year you worked, plus a six-month grace period following. No payments or interest is due until the end of the grace period.

Rate of Cancellation: 15 percent of the original principal balance of the loan, per year. If you continue to qualify for this cancellation and file proper forms, your loan will be cancelled in full after seven years of eligible employment.

Teacher Postponement/Cancellation

Full-time, full-year employment in many different fields of teaching qualifies for cancellation of your Perkins Loan.

The word teacher does not have to be a part of your job title to qualify for teacher postponement/cancellation. According to the Department of education a teacher is:

1. A person who provides direct classroom teaching.
2. A person who provides classroom-type teaching in a non-classroom setting.
3. Provides educational services to students directly related to classroom teaching such as school librarians or school guidance counselors.

Examples of positions that may qualify that are many times over-looked as qualifying teachers include, but are not limited to: coaches, guidance counselors, learning lab staff, librarians, resource teachers, library aides. Teachers’ aides, assistant teachers, and paraprofessionals may qualify under certain conditions. Examples of staff that would NOT BE ELIGIBLE would be business officers, campus store clerks, secretaries, medical staff, custodial staff, cafeteria staff because they do not provide direct and personal service for the student's educational development.

You must be directly employed by the school system. That requirement may be met by meeting one of the following criteria:

1. A facility recognized or licensed by the state to provide elementary or secondary education. OR
2. An agency licensed by the state to provide education as mandated by state law.

If you are employed as a physical, occupational, or recreational therapist or speech pathologist/audiologist, psychiatrist or psychologist, you may qualify but must meet special criteria. You must be licensed, certified, or registered in the profession by the state agency and you must be providing services as part of the educational curriculum. This will require you providing a copy of your license, certificate, registration, or endorsement, and an official job description or letter from a school official verifying your work as part of the educational curriculum.

Qualifying Employment:

1. A full-time, full-year teacher in a public or nonprofit elementary or secondary school serving low-income families and designated as eligible by the Department of Education. A list of low-income schools by year can be found online at www.studentaid.ed.gov. Under Repaying Your Loans, click Repayment Information, then on teacher cancellation. All elementary and secondary schools operated by the Bureau of Indian Affairs are considered to qualify as eligible low-income schools.
2. A full-time, full-year special education teacher, including teachers of infants, toddlers, children, or youth with disabilities in a public or other nonprofit elementary or secondary school. Disabled children are defined the same as handicapped children above. The majority of students must be between the ages of 0 and 21.
3. A full-time, full-year teacher of mathematics, science, foreign languages, bilingual education, or any other field of expertise that is determined by a state education agency to have a shortage of qualified teachers in that state.

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.

Rate 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.

Law Enforcement or Correctional Officer

Full-time, full year employment in law enforcement or corrections qualifies some Federal Perkins Loan borrowers for cancellation of their loan.

Qualifying Employment:

The agency:

1. Your employer must be a local, state, or federal agency.
2. The agency must be publicly funded and its activities must 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 having criminal jurisdiction and related agencies; activities of corrections, probation, or parole authorities; and problems relating to the prevention, control, or reduction of juvenile delinquency or narcotic addiction. Agencies primarily responsible for enforcement of civil, regulatory, or administrative laws are ineligible.

Your position:

1. Your position must be considered essential to the agency's primary mission.
2. You must be a full-time employee, and a sworn officer or person whose principal responsibilities are unique to the criminal justice system.
3. Your position must be directly involved with the enforcement of criminal law.

Persons whose responsibilities are supportive (typing, filing, custodial, foodservice, accounting, maintenance, etc.) are not eligible regardless of where these duties are performed.

To receive postponement/cancellation: Fill out and sign your form, have an official certify your employment information, and return the form to this office with a copy of your official job description. A determination of whether or not you qualify will be made in this office 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.

Rate 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.

Child or Family Service Agency Employee

Full-time, full-year employment in a public or private nonprofit child or family service agency providing service working with high-risk children from low-income communities qualifies some Federal Perkins Loan borrowers for cancellation of their loan.

Qualifying Employment:

The agency:

1. Must be a public or private nonprofit child or family service agency
2. Must provide or supervise the provision of services to high-risk children who are from low-income communities and the families of such children. The DOE has determined that an elementary school or secondary school system or a hospital is not an eligible employing agency.

Your position:

1. You must be a full-time, full-year employee of the agency. You must be directly providing or supervising the provision of services to high-risk children who are from low-income communities and the families of those children.

High-Risk Children: Individuals under 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 home, OR are involved in the juvenile justice system.

Low-Income Communities: Communities 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.

To receive postponement/cancellation: Fill out and sign your form, have an official certify your employment information, and return the form to this office with a copy of your official job description. A determination of whether or not you qualify will be made in this office 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.

Rate 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.

Employee in a Pre-Kindergarten or Childcare Program

Full-time staff members employed in a pre-kindergarten or child care program that is licensed or regulated by the State. It must be operated for a period comparable to a full school year in the locality and your salary cannot be more than that of a comparable employee of the local educational agency.

To receive postponement/cancellation: Fill out and sign your form, have an official certify your employment information, and return the form to this office with a copy of your official job description. A determination of whether or not you qualify will be made in this office 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.

Rate 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.

Attorneys Employed in a Defender Organization

**** Attorneys employed in a defenders organization established in accordance with section 3006(g)(2) of title 18 USC.

To receive postponement/cancellation: Fill out and sign your form, have an official certify your employment information, and return the form to this office with a copy of your official job description. A determination of whether or not you qualify will be made in this office 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.

Rate 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.

Firefighters

Firefighters employed full time for a local, State, or Federal fire department or fire district.

Faculty of a Tribal College or University

Full time faculty members at a Tribal College or University as that term is defined in section 316 of title 20 USC.

To receive postponement/cancellation: Fill out and sign your form, have an official certify your employment information, and return the form to this office with a copy of your official job description. A determination of whether or not you qualify will be made in this office 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.

Rate 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.

Librarians

*** Full time librarians with a master's degree in library science and employed in an elementary or secondary school that is eligible for assistance under part A of Title I of the Elementary and Secondary Education Act of 1965. Or if you are employed in a public library that serves a geographic area that contains one or more of these schools.

To receive postponement/cancellation: Fill out and sign your form, have an official certify your employment information, and return the form to this office with a copy of your official job description. A determination of whether or not you qualify will be made in this office 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.

Rate 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.

Speech Language Pathologists

Full-time speech language pathologists with a master's degree working exclusively with schools that are eligible for assistance under part A of Title I of the Elementary and Secondary Education Act of 1965.

To receive postponement/cancellation: Fill out and sign your form, have an official certify your employment information, and return the form to this office with a copy of your official job description. A determination of whether or not you qualify will be made in this office 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.

Rate 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.

Military Service in an Area of Hostility

Members of the armed forces who are serving in an area of hostility that qualifies for hazardous duty pay. You will need to provide a copy of orders or your DD214 or some other official paperwork to show the length of time you were eligible for special pay.

To receive postponement/cancellation: Fill out and sign your form, have an official certify your employment information, and return the form to this office with a copy of your official job description. A determination of whether or not you qualify will be made in this office 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.

Rate 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.

Total & Permanent Disability

***** If you are totally and permanently disabled per the Dept of Education’s definition, you may be eligible to have your entire Perkins Loan cancelled in full.

As of July 1, 2008, you are entitled to discharge of this loan in the total amount owed if the Dept of Veterans Affairs determines that you are unemployable due to a service-connected disability.

The only paperwork required of the veteran is a signed permanent disability application and a copy of the letter from Veterans Affairs.

For all others, a completed application, including detailed information about your medical condition, must be certified by your doctor. Your doctor must certify that you meet the definition of permanent disability and must give the date you became totally and permanently disabled.

Contact our office to request the necessary forms.