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.
- Must be a public or private nonprofit child or family service agency
- 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.
- 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.
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.