Cancellation

​Cancellation

What conditions may allow my Perkins loans to be cancelled and how do I apply?

A borrower may have all or part of his or her Perkins loan (including interest) cancelled for engaging in teaching, public service, service in the Peace Corps or AmeriCorps*VISTA, or service in the military. In addition, loans may be discharged if the borrower becomes disabled or dies. Like deferment, cancellations are not automatic and borrower will need to submit a request to our loan servicer ECSI.

A defaulted loan may be cancelled if the only reason for the default was the borrower’s failure to file a cancellation request on time. If the loan has already been accelerated, only eligible service performed prior to the date of acceleration can be considered for cancellation. A borrower is not entitled to cancellation for any eligible service performed after the date of acceleration.

The following chart includes a list of cancellation provisions for Federal Perkins Loans.

Cancellation Conditions Amount Forgiven
Borrower's total and permanent disability or death 100%
Cancellation upon Death and Disability
Service in the U.S. armed forces in a hostile fire or imminent danger pay area Up to 50% for borrowers whose active duty service ended before Aug. 14, 2008

Up to 100% for borrowers whose active duty service began on or after Aug. 14, 2008

Military Service Cancellation
Full-time firefighter (for service that began on or after Aug. 14, 2008) Up to 100%
Nurse, Medical Technician & Firefighter Cancellation
Full-time nurse or medical technician
Full-time law enforcement or corrections officer Up to 100%
Law Enforcement, Corrections Officer, Public Defense Lawyer, or Prosecuting Attorney Cancellation
Full-time attorney employed in a federal public or community defender organization (for service that began on or after Aug. 14, 2008)
Librarian with a master's degree working in a Title I-eligible elementary or secondary school or in a public library serving Title I-eligible schools (for service that began on or after Aug. 14, 2008) Up to 100%
Qualifying Teaching, Speech Language Pathologist, and Librarian Services Cancellation
Full-time speech pathologist with a master's degree working in a Title I-eligible elementary or secondary school (for service that began on or after Aug. 14, 2008)
Full-time special education teacher of children with disabilities in a public or other nonprofit elementary or secondary school
Full-time teacher of math, science, foreign languages, bilingual education, or other fields designated as teacher shortage areas
Full-time teacher in a designated educational service agency serving students from low-income families (for teaching service that began on or after Aug. 14, 2008)
Full-time faculty member at a tribal college or university (for service that began on or after Aug. 14, 2008)
Full-time employee of a public or nonprofit child- or family-services agency providing services to high-risk children and their families from low-income communities Up to 100%
Provider of Early Intervention Services or Provider for Child or Family Services Cancellation
Full-time qualified professional provider of early intervention services for the disabled
Full-time staff member in the education component of a Head Start program Up to 100%
Head Start Staff Member, Pre-K or Child Care Program Staff Cancellation
Full-time staff member in a pre-kindergarten or child care program that is licensed or regulated by a state (for service that began on or after Aug. 14, 2008)
VISTA or Peace Corps volunteer Up to 70%
Volunteer Service Cancellation

Cancellation Rate Chart 

Cancellation Type Year 1 Year 2 Year 3 Year 4 Year 5
Low Income Teacher 15% 15% 20% 20% 30%
Teacher of Handicapped Students 15% 15% 20% 20% 30%
Teacher of Special Education 15% 15% 20% 20% 30%
Math, Science, or Language Teacher 15% 15% 20% 20% 30%
Law Enforcement/ Corrections Officer 15% 15% 20% 20% 30%
Child or Family Service Agency 15% 15% 20% 20% 30%
Nurse/Medical Technician 15% 15% 20% 20% 30%
Military 15% 15% 20% 20% 30%
Lawyer in Public Defender Organization 15% 15% 20% 20% 30%
Fire Fighter 15% 15% 20% 20% 30%
Faculty of Tribal College/University 15% 15% 20% 20% 30%
Librarian at Low-Income School 15% 15% 20% 20% 30%
Speech Pathologist at Low-Income School 15% 15% 20% 20% 30%
Early Intervention Service Provider 15% 15% 20% 20% 30%
Peace Corps 15% 15% 20% 20% N/A
Head Start and Pre-Kindergarten/Child Care 15% per year until paid-in-full (if eligible)